Social Security and qualified plans such as 401(k) or proft-sharing plans are key components of your employees' compensation packages. However, the vesting requirements imposed by ERISA and portability of benefits in these plans mean they generally provide little incentive for your key people to maximize shareholder value. Moreover, current tax laws limit the benefits your executives can expect to 30 - 50% of final pay, compared to 60 - 80% of final pay for rank-and-file employees.

A properly designed SERP can:

• Restore these shortfalls
• Help you attract key people to your organization
• Serve as an effective handcuff to help you retain your best and brightest