About 70 percent of employers supplement their qualified plans with additional employer-funded, non-qualified retirement benefits for their senior executives, and these supplemental plans providing an annual contribution are marginally more common than those focusing on a specified retirement benefit, according to a new benefits survey by Integrated Healthcare Strategies.
The survey also finds that median medical plan premiums for family coverage grew by an average of 8 percent each year for the past three years, and most respondents offer executives 100 percent of their pay during a short-term disability period through one or more disability programs. For a long-term disability claim, the median salary replacement is 60 percent, which is provided by group and supplemental disability plans at the executive level.
The trend is moving away from perquisites, the survey shows, unless those items can be counted as business expenses. The most predominant perquisite is a car or car allowance, as 86 percent of CEOs receive either one.
“Competitive benefits are a cornerstone to retaining talented executives,” says Linette Allison, vice president of operations and quality in the Executive Compensation and Governance practice at Integrated Healthcare Strategies. “Helping health care organizations create balanced compensation plans that promote the attraction and retention of top-tier executives while maintaining compliance and reasonableness is a key focus of our firm.”