Executive planning is the process of laying out a strategic order in which top employees should carry out their duties and the benefits they are likely to get in order to achieve maximum benefits in a company. It is a very important component for all benefit strategies of any corporate. The success of a business is brought about by proper executive planning as it gives them a drive to focus and also motivates them. The plan should offer a better incentive of a package as compared to what the competition offers for it to succeed.
Flexibility in developing benefit compensation strategies is provided by executive planning making them to be used in a variety of areas. Based on total compensation the replacement income at retirement can be provided. Rewarding, attracting and retaining of key executives is made possible. It makes it possible to provide enhanced benefits in case of a complete change of power in the business.
Benefit equalization plans, supplemental executive retirement plans and deferred compensation arrangements are examples of executive plans. Lost retirement plans are restored by benefit equalization plans. In order to avoid current taxation, deferred compensation arrangements allow both designated executives and corporate directors to defer additional compensation. In order to make it possible for employees to have vehicles these plans are strategized. Supplemental executive retirement plans provide numerous benefits. Credit provision for additional years of providing services is made possible. The rewarding of top employees by the organization based on their overall performance is made possible. It makes it possible for primary executives to get bonuses. Executives who retire early are also able to get retirement benefits and this is made possible by this plans.
There are various factors that every organization should consider before the can design an executive plan. Cost objectives and benefits of the business should be taken into consideration. The attitude of the business towards the allocation of benefits based on the overall company performance should also be taken into consideration. To top it all, the organization should also check how it wants to distribute its retirement benefits among various qualified plans.
Executive planning that is well thought out enables a business to attract and maintain key personnel thus ensuring the success of the business. Effective executive planning will also offer appealing incentives for key executives and allow for succession of the business at the right time. It also helps an organization to plan for its current and future needs and its executive leadership.
It is upon every organization therefore to ensure that it has effective executive planning so as to enhance the success of the business.