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Controlled Bonus Plans: The “Golden Handcuffs” Strategy

Want to keep your best employees committed? A controlled bonus plan (also called a restricted executive bonus plan) helps ensure your key people stay by tying benefits to vesting or performance.

Key Advantages of a Controlled Bonus Plan

🔐 Retention Through Vesting
Executives must meet certain milestones or tenure before accessing full policy benefits.

💼 Customizable Control
Employers decide how and when executives gain full ownership.

🧠 Motivation for Long-Term Growth
Aligns employee goals with company success.

💰 Tax-Deductible to the Business
Bonus payments are typically deductible, reducing company tax burden.

👨‍👩‍💼 Employee Loyalty Builder
Creates a culture of long-term partnership rather than short-term gain.

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