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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