Liquid gold: Compensation planning issues and solutions for credit unions & not for profits

Modern Capital helps organizations grow by retaining, rewarding, and recruiting top-level talent via supplemental benefits & income. We tailor customized designs and strategies to protect Human Capital, arguably the most important corporate asset. We also consult on ways to increase non-interest income to the bottom line, offset employee benefit costs, and donate to charity in financially optimal ways.

In our post Covid world along with the new remote office environment, we are facing additional challenges with connectedness, team integration, growth, and maintaining corporate philosophy.

In the not-for-profit arena, there is not a chance for a C-suite executive to own a piece of the company and in the for-profit arena, the utilization of second classes of stock provides for minimal control and no diversification. What’s the solution? Enter the world of selective benefit planning.

Selective benefit plans include: 457, 162 bonus, supplemental executive retirement, long term incentive, and “split dollar”. In fact, in the not-for- profit space, utilizing some of the programs are not part of the calculation of excise tax (21%). For some organizations, this has amounted to over $600,000 or more in annual savings.


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