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 fundamental component for all corporate benefits strategies. Proper executive planning motivates executives and also ensures that they have a drive to focus on the success of the business. If the plan does not offer a better incentive of a package as compared to what the competition gives then it is likely to fail.
Flexibility in developing benefit compensation strategies is provided by executive planning making them to be used in a variety of areas. It enables the provision of replacement income at retirement based on total compensation. Rewarding, attracting and retaining of key executives is made possible. Enhanced benefits are provided in case there is complete change of power or in case of the attainment of the business.
Benefit equalization plans, supplemental executive retirement plans and deferred compensation arrangements are examples of executive plans. In order to restore lost retirement plans, benefit equalization plans are used. In order to avoid current taxation, deferred compensation arrangements allow both designated executives and corporate directors to defer additional compensation. These plans are strategized in order to make it possible for key employees to acquire vehicles provided by the business. A large number of benefits are provided by the supplemental executive retirement plans. They enable the provision of credit for additional years of service. The rewarding of top employees by the organization based on their overall performance is made possible. The giving of bonuses to executives is made possible. It makes it possible for executives who retire at an early age to acquire retirement benefits.
When laying out an executive plan, there are factors that every organization must put into consideration. Every organization should consider its benefits and cost objectives. In addition to that, every company should consider its attitude towards allocating benefits based on an overall company performance. conclusively, the issue of how the company would like to apportion its retirement benefits should also be put into consideration.
Attracting and maintaining of key personnel is important for any business and this is enabled by executive planning that is greatly thought out. Appealing incentives for primary executives and succession of the business when the time is right, is brought about by an effective executive planning. It also helps an organization to plan for its current and future needs and its executive leadership.
For every organization to succeed, it should ensure that it has efficient executive planning.