Breaking it down, nearly all financial firms studied (96%) offer one or more voluntary deferred compensation plans and 74% have a defined contribution matching program. Further, 80% offer a supplemental executive retirement plan that will pay a defined benefit, according to an analysis conducted by The Todd Organization.
Additionally, 88% of the organizations examined offer at least one type of enhanced insurance benefit to executives. The most common benefits offered are post-retirement medical coverage (offered at 76% of the institutions studied), supplemental term life insurance (30%), and supplemental disability coverage (18%).
“America’s largest financial services companies place a high value on retaining key executives. The cost for replacing such executives can be tremendous,” said Ron Roth, Executive Vice President of The Todd Organization, commenting on the results. “It makes more sense than ever to design programs that provide compelling retirement benefits, particularly as a growing number of these institutions’ executives are at the beginning of the baby-boom generation, and now approaching retirement.”
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