Executive Benefit Plans
Although all employees are important components of any company, more compensation is often offered for those whose contributions directly affect the success of the company. This recognition can be in the form of salary, bonus, stock options, etc. but one way to compensate key people is through an executive benefit plan.
These plans would be added on top of the existing company employee benefit plans. They could offer a very generous level of benefits that are comprehensive enough that every non-taxable benefit available could be included on the plan. There are significant cost savings available for executives by having non-taxable benefits such as medical and dental bills fully paid, or having their mortgage interest payments reduced by a couple percentage points, or fully paid maximum RRSP contributions. These are some ways to maximize key employees' compensation packages without overly increasing employer payroll costs.
The executive plans are not appropriate for a group where only shareholders would receive these enhanced benefits.
