Louis authors article about nonqualified deferred compensation in Employee Relations Law Journal
Nonqualified Deferred Compensation: A Tool for Family Business
Robert H. Louis, a partner and co-chair of the Personal Wealth, Estates and Trusts Practice, wrote this article that explores the use of nonqualified deferred compensation plans as an incentive for corporate executives to achieve business growth and remain loyal employees, particularly for non-family managers in family-owned businesses. The article explains how to use these plans as an alternative to giving these types of employees an ownership stake in the business, but cautions that care must be taken in payout methods to ensure compliance with tax laws. Nonqualified deferred compensation plans also can be used as a source of retirement payments when family members pass ownership and control of the business to the next generation.