Robert Cameron Bye

Executive Benefits

Working with clients and their advisors, Bob addresses a myriad of Executive Benefit Plans. The end result provides solutions to meet the needs of informal financing of benefits for the client company’s top executives.

An executive benefit plan provides you with a competitive edge recruiting and retaining top executives. Adding to your regular compensation package can help promote the dedication and commitment of your company’s most important people. You can choose which of your key employees will participate in the plan and the level and types of benefits provided.

Employee Stock Ownership Plans (ESOPs)

Existing ESOP companies, regardless of C or S Corporation status develop significant repurchase liability over time. An informal financing strategy to meet this liability makes good business sense. If no plan exists to build reserves for the liability, then management is relying on future cash flow which may be uncertain, and they are passing the problem which is currently being created onto a future management team to address.

Bank Owned Life Insurance (BOLI) and Corporate Owned Life Insurance (COLI)

Bank Owned Life Insurance and Corporate Owned Life Insurance are efficient vehicles to informally finance nonqualified benefit liabilities. Life insurance can provide a valuable asset on the employer’s balance sheet because, under current tax law, cash values grow tax-deferred. The death benefit is generally received income tax free, which provides the employer with both the ability to provide a pre-retirement survivor benefit to the participant and the potential to ultimately recover some or all of its benefit costs.

Business Succession Planning

The interaction of income taxes, estate and inheritance taxes, family values and business needs complicate continuation planning. ESOPs, recapitalization to voting and non-voting stock, Family Limited Partnerships, Limited Liability Companies, GRATs, Charitable Lead Trusts or Charitable Remainder Trusts, and Life Insurance are all devices that will have application in different situations.

Benefits for Business Owners

Needs and goals of business owners may be different than the rest of the executive group. Founders of public companies owning restricted stock also have unique problems. Estate conservation and tax liability may be of primary concern, and may need to be addressed instead of supplemental retirement plans which would only compound the problem.