Deferred compensation plans range from cash incentive plans, stock appreciation rights, phantom stock plans
and restricted executive benefit plans.
Phantom stock plans
are a form of nonqualified deferred compensation made available to select employees.
The incentives include stock options (both qualified and non-qualified) with a buy-back agreement, phantom stock plans
, non-qualified deferred compensation and cash bonuses.
Beyond those exceptions, section 409A applies broadly to salary reduction plans, supplemental employee retirement plans (SERPs), parachute payments, phantom stock plans
, severance plans, insurance commissions, discounted stock options, certain SARs, non-excluded fringe benefits, etc.
The shift today within private firms has been in the direction of phantom stock plans
that are capital event--driven.
But offering multiple retirement plans -- and in some cases; phantom stock plans
-- shows they're rising to the challenge.
These plans are often described as full value phantom stock plans
Reduce your labor force, if appropriate, by consolidating the workflow; eliminate overtime without written authorization; offer bonuses to employees for introducing new employees to the company, thereby saving a personnel agency fee; reevaluate the company's bonus policy; and consider using non-cash bonuses such as stock options and phantom stock plans
The only specific forms of compensation for which the institutions expressed strong sentiments were incentive and non-qualified stock options and cash bonuses (in favor), and phantom stock plans
and stock appreciation rights plans (disfavor).
Corporate-owned life insurance can be one of the most cost-effective and tax-advantaged methods of funding nonqualified benefit plans including supplemental executive retirement plans (SERPs), 401(k) overlay plans, supplemental executive life insurance plans and phantom stock plans
Included are severance payments, bonus deferral arrangements, supplemental executive retirement plans (page 383), phantom stock plans
(page 491), stock appreciation rights (page 491), and nonqualified stock options (page 482).
Phantom stock plans
have the same accounting effects as SARs.