DO NOT TAKE FINANCIAL ADVICE FROM A BIG RED CAR — EVER

With that caveat, I want to urge you to investigate how deferred compensation might be a useful tool around the C Suite as part of a well-designed compensation program offering: compensation, benefits, short term incentive compensation, long term incentive compensation, and “something special.”

Deferred compensation fits into the “something special” category.

Let’s start with the basic understanding that you are a startup founder/CEO — in part, at least — for the money. Deferred compensation is a way to manage your compensation to your personal advantage within the rules as they are written.

There are two types of deferred compensation:

 1. Qualified deferred compensation programs such as the 401(k); and,

 2. Non-qualified deferred compensation programs which are one-off, bespoke arrangements negotiated between the founder/CEO/C Suite denizen and the company. Continue reading →