What are the distinguishing features of executive or equity-based compensation? Where do opportunities arise, and what are the risks and challenges? This paper looks to explore compensation strategies unique to some corporate environments and to offer recommendations for building wealth through the different stages of a career.
Often, large corporations offer executives and other key personnel the opportunity to participate in a specialized investment strategy in the form of a nonqualified deferred compensation plan (NQDC). The NQDC is a supplemental means of retirement funding which allows executives to defer a portion of their current income for distribution in future years. Differences between company plans can be significant and eligible executives often choose to customize NQDC selections to align with their overall financial plan.
Should your retirement strategy include NQDC participation? The following information will guide you in considering this corporate benefit.