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3 reasons to offer company-sponsored financial counseling for executives


06.01.2018 2 MIN READ

 

You invest a lot of time and resources in your senior talent. Help maximize that investment, and manage company and shareholder risk, with an executive counseling program. 

 

1. Your executives need more time 

With complex financial and personal lives, executives now spend 10% of their time at work on personal matters*. Give a portion of that critical time back to them so they can focus on business.

An executive financial counseling program will:

  • Provide a dedicated advisor for each of your executives
  • Provide multidisciplinary planning advice, including in-depth financial analysis
  • Serve as a centralized resource, coordinating with your executives’ other service providers for seamless integration
  • Incorporate Ayco technical support teams for additional guidance when needed (e.g., tax preparation, personal risk evaluation)

 

2.  Much of executive compensation is wrapped up in complex programs

Make sure your executives understand and appreciate the value of their total compensation.

Ayco will:

  • Act as an extension of your benefits team, communicating and helping to implement benefit decisions (e.g., making elections)
  • Integrate compensation and benefits into each executive's overall financial plan
  • Provide resources dedicated to understanding your bespoke benefit and compensation plans to ensure maximization

 

3.  Minimize risk to your company and shareholders

Given the regulatory environment and heightened scrutiny on executives, an unadvised and unaware executive can be a risk to themselves, the company and its reputation.

  • Ensure executives are aware and informed when conducting financial transactions in company securities and in general
  • Help executives in filing federal, state and local tax returns properly and timely, and in paying taxes while complying with all reporting requirements
  • Aid in avoiding embarrassing disclosures that might occur due to inadvertent noncompliance with applicable rules and regulations (e.g., household employee filings)

 

A positive approach to proxy disclosure

Companies typically disclose this benefit as aligned with shareholder value as a means of maximizing ROI of benefits programs, retaining executive talent and mitigating risk. This positive and appropriate approach to proxy disclosure helps shareholders distinguish an executive financial and tax-planning program from other types of benefits and perquisites that do not have demonstrable benefits to the company.

 

Learn more about our executive financial counseling service.

*Centre for Economic Policy Research – CEO Behavior and Firm Performance, April 2017

 

For disclosures relating to this article, please click here.