Belgius Capital can help you discover if your business is appropriately rewarding the key people who drive your organizational growth and are responsible for developing, nurturing, and maintaining the important relationships, processes, and assets that make your company thrive.
Attracting and retaining top executives is a strategic business advantage, and one of the quickest methods of growing your company.
One of the more common ways for companies to do this is by offering executives benefits that aren’t available to all the employees.
As an executive, it is essential to have a complete understanding of all the benefits provided by the employer, but it can be challenging to understand the rules and implications of each plan. Many of the plans have complex guidelines and tax implications, so it’s essential to work with a company like Belgius Capital who understands the intricacies and can help you gain a full understanding of and be able to implement the right planning strategy.
Belgius Capital strives to understand each executive’s individual goals and objectives. After setting out short and long-term goals, we create a personalized wealth plan to satisfy each defined purpose. At Belgius Capital, we help you implement each stage of the plan, and as time passes, we are here to guide and help in the implementation of strategies to make the most of your executive benefits.
Belgius Capital wealth management solutions are confidential and can enable you to decide who you wish to benefit, which can be especially useful when the family situation is complicated.
Some of the most common executive benefits we are asked to offer guidance on include:
Employee Shares Purchase Plans
- Employee Shares Purchase Plans enable employees to purchase their company’s ordinary shares, often at a discount from the market price.
Restricted Share Units
- A Restricted Share Unit award is based on a specified number of company shares, although the actual shares are not awarded straight away. Once the recipient becomes entitled to the benefits of ownership, the company distributes the cash equivalent to the number of shares awarded. Restricted Share Units are subject to income and payroll taxes, so they must be taken into account when planning and budgeting.
Restricted Share Awards
- An RSA is a grant of company shares in which the recipient’s rights in the shares are restricted until the beneficiary becomes entitled to the benefits of ownership, even if they no longer work at the company providing the plan. Once the requirements are met, the shares belong to the recipient outright. Restricted Share Awards are subject to ordinary income and payroll taxes, so this must be taken into consideration when planning for future expenditures.
- Restricted Shares are typically acquired by executives, as compensation for their professional services. Restricted Shares can be sold, but the executive must meet certain conditions outlined in Securities Act Rule 144.
Share Appreciation Rights
- Share Appreciation Rights are awards that give the holder the chance to profit from the increase in the value of company shares over a set period. The awardee benefits after the share price has risen above the value specified. The awardee does not need to pay an exercise price to acquire shares, but simply benefits from the net amount of the increase in the shares price in either cash or more shares in the company.
Performance Awards Plans
- A performance award is when the awardee receives an amount of cash or company shares after attaining a pre-determined business or performance goal.
Non-Qualified Deferred Compensation
- A plan which allows a highly-compensated executive the ability to defer a part of their compensation, and thereby the taxes owed on that amount until later in the future.
- A Bonus Plan is commonly incorporated into an executive's remuneration package and Is a great way to reward employees, whatever their salary or position in the company. The company pays a cash bonus to the employee or pays for an investment on behalf of the employee, and while this will be counted as taxable earnings for the employee, it may well be tax-deductible for the company.
Non-Qualified Deferred Compensation Plan
- A Non-Qualified Deferred Compensation Plan enables a company to put aside funds to later benefit top executives. This plan may allow for deferring pretax salaries, employer contributions, or both, and the company can also decide when in the future the benefit is to be paid.
Executive Life Insurance
- Top executives often have additional health and life insurance needs, so to safeguard the lifestyle and income of their families, it is vital to provide a replacement salary in case of untimely death. Contact < companyname> for further information on any of these plans, or for a consultation about how your company can better reward your key employees.
*Each client's circumstances are unique, and you should consider your investment goals, risk tolerance, and time horizon before making any investment. No investment can be guaranteed to achieve its investment objectives, or that substantial loss will be avoided.