Executive Bonus Compensation Planning in Puerto Rico and the USA
Retain, Reward, and Protect Key Executives With Strategic Bonus Planning
Whether you are looking to retain top leadership, reward key executives, or design a long-term compensation strategy, our experienced team is here to help. As trusted Executive Bonus Plan consultants, we provide personalized guidance to structure Section 162 plans that align with your business goals while delivering meaningful, long-term value to your executives.
Benefits of Having an Executive Bonus Plan
Selective Executive Rewards – Allows businesses to reward key executives individually without offering benefits to the entire workforce.
Powerful Retention Tool (Golden Handcuffs) – Creates long-term, vested benefits that encourage executives to stay with the company while building personal financial security.
- Executive-Owned Asset – Executives own the life insurance policy, giving them long-term value, protection, and future access to cash value.
- Tax-Deductible Bonus for Employer – Bonus payments are generally deductible as a business expense, making the plan cost-effective for employers.
- Long-Term Wealth & Retirement Support – Certain policies allow cash value accumulation that can support supplemental retirement income.
Why Choose Our Executive Bonus Plan Consulting Services?
Designing and implementing a Section 162 Executive Bonus Plan Strategy in Puerto Rico and the USA requires careful planning, compliance, and strategic alignment with business goals. With the right Executive Bonus Plan consultants, business owners can confidently reward and retain key executives while maintaining flexibility and control. We offer:
- Expert Strategy & Compliance – Our experienced consultants structure Section 162 Executive Bonus Plans that align with IRS guidelines and your long-term business objectives.
- Customized Plan Design – Each plan is tailored to your company’s compensation strategy, executive needs, and retention goals.
- Carrier-Agnostic Solutions – We work with top-tier insurance providers to secure high-quality policies designed for executive benefits and long-term value.
- End-to-End Support – From plan design and implementation to ongoing reviews and adjustments, we provide complete Executive Bonus Plan consulting services.
Types of Executive Bonus Plans We Offer
Choosing the perfect Executive Bonus Plan in Puerto Rico and the USA depends on your business objectives, retention goals, and the long-term financial needs of your key executives. We specialise in various Section 162 Executive Bonus Plan structures designed to reward top talent while providing flexibility, tax advantages, and long-term value for both the employer and the executive.
1. Basic Executive Bonus Plan
The company pays a bonus to the executive to fund a permanent life insurance policy, which the executive owns and controls as a long-term asset for retirement or protection.
2. Double Bonus Executive Plan
In addition to the premium bonus, the company provides another bonus to help offset the executive’s income tax on the bonus, increasing the attractiveness of the plan.
3. Restricted Executive Bonus Plan (REBP)
This plan is similar to the basic plan, but it comes with added restrictions that help employers retain key executives by limiting access until they meet certain conditions or milestones.
How To Implement An Executive Bonus Plan
- Identify Key Executives: Select the executives you want to reward or retain based on their impact, performance, and long-term value to the business.
- Determine Bonus Structure: Decide the bonus amount and whether to use a Basic, Double Bonus, or Restricted Executive Plan aligned with your business goals.
- Select the Insurance Strategy: Choose an appropriate permanent life insurance policy that supports long-term accumulation, protection, and future income potential.
- Establish Plan Agreements: Put the necessary Section 162 documentation and any retention provisions in place to define ownership, access, and conditions.
- Fund, Monitor, and Review: Fund the plan through ongoing bonuses, review performance regularly, and adjust as business or executive needs evolve.
How Our Executive Bonus Plan Consulting Works
As a specialized Executive Bonus Plan consulting firm, we follow a structured and compliant approach to help business owners design and implement effective Section 162 plans:
Step 1: Strategic Consultation – We assess your business objectives, executive compensation goals, and retention needs to determine whether an Executive Bonus Plan is the right fit.
Step 2: Plan Structure & Design – We identify the most appropriate Executive Bonus Plan type (Basic, Double Bonus, or Restricted) and align it with a suitable insurance strategy.
Step 3: Policy Selection & Implementation – We coordinate policy design, carrier selection, and required documentation to ensure proper setup and compliance.
Step 4: Ongoing Review & Support – We provide continuous monitoring and plan adjustments as business goals, executive roles, or tax considerations evolve.
How Can We Help You?
Our goal as an Executive Bonus Plan consulting firm is to deliver strategic guidance and tailored solutions that align with your business and executive compensation goals. Whether you are looking to reward key leaders, strengthen retention, or design a long-term incentive strategy, we help you implement compliant and effective plans with clarity and confidence. Through our expertise in Executive Bonus Compensation Planning in Puerto Rico, we simplify complex decisions, customize plan structures, and ensure your executive benefits strategy supports both business growth and long-term executive value.
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Frequently Asked Questions
EXECUTIVE BONUS PLAN
From term to whole life, Executive Bonus Plans secure executive protection.
What is an Executive Bonus Plan, and how do you help set it up?
An Executive Bonus Plan is a compensation strategy where a company gives bonuses to fund a permanent life insurance policy for key executives. Our team handles the full design, paperwork, carrier selection, and compliance so business owners don’t have to stress over the details—especially when structuring an Executive Bonus Plan in Puerto Rico and the USA.
Why work with consultants instead of setting up a plan internally?
These plans may look simple, but getting the tax treatment, restrictions, and documentation right matters a lot. We bring experience, career-agnostic options, and ongoing reviews to make sure your Section 162 Executive Bonus Plan Strategy in Puerto Rico actually works long-term and stays aligned with IRS rules.
What type of executives are usually good candidates for these plans?
Most companies use Executive Bonus Plans for top leadership, partners, or high-impact employees they want to keep long term. Through our Executive Bonus Compensation Planning in Puerto Rico, we help you decide who should be included, how much to bonus, and what structure fits your retention goals best. This helps you have a more structured business with loyal and skillful employees serving the company in the long run.
Do you help with the life insurance selection as well?
Yes—we don’t just design the plan and walk away. We work with leading carriers to select policies that support accumulation, protection, and future income potential, all tailored to your business and executive needs through Executive Bonus Plan Life Insurance in Puerto Rico. Our retirement and financial planning agency provides consistent support and guidance at every step of the way so that you can have better clarity with any plan you choose.
What documents and administration do you handle for clients?
We coordinate Section 162 agreements, policy paperwork, restriction provisions if needed, and ongoing plan reviews. Our goal is to keep everything organized and compliant while making the experience smooth for employers using Executive Bonus Insurance in Puerto Rico.
How long does it usually take to implement an Executive Bonus Plan?
Once we complete the strategy discussion and choose the right structure, most plans can be implemented within a few weeks, depending on underwriting and documentation. Our consulting process for Executive Bonus Plan in Puerto Rico focuses on speed, clarity, and long-term success—not rushed setups that create issues later.
