Company - owned life insurance is one way to help protect a business from financial problems caused by the unexpected
death of a key employee, partner, or co-owner.
Key man disability insurance is purchased on one or more key people in a business to protect the business from the economic loss associated with the
disability of a key employee.
For an employee who owns no equity in the business, the maximum
amount of key employee life insurance a business can buy is 10 times the employee's annual income.
He has not said whether he will run again but recent moves — including the
protection of key employees — signals that he expects to leave.
The company's cost for the plan is minimal and may be funded with a cash value life insurance policy that is purchased by the company for the
benefit of a key employee.
Examples are insurance owned by a business on the
life of a key employee and insurance owned by a business partner on the life of another partner.
Even if there is no contract, obligations to respect confidential information, and fiduciary duties (in the
case of key employees) last beyond the end of employment and can limit competition.
If
retention of key employees is a condition of sale, determine what is necessary to secure their employment, or continued employment.
The key is if a business owner pays premiums on behalf
of a key employee as part of an executive bonus plan, deferred compensation plan or split dollar plan, the premiums may be deductible if they are recognized as income to the employee.
Key - employee insurance indemnifies you against losses resulting from the death or disability
of a key employee in your firm, including yourself or your partners.
The key is if a business owner pays premiums on
behalf of a key employee as part of an executive bonus plan, deferred compensation plan or split dollar plan, the premiums may be deductible if they are recognized as income to the employee.
However, policy loans can be another incentive an employer uses to maintain the
loyalty of a key employee, particularly if the split dollar plan requires any policy loan to be repaid if the employee has not been with the company for the requisite amount of time.
How a split dollar plan is structured will depend upon the specific goals and concerns of the business owner AS WELL AS the specific
situation of the key employee.
It describes how a business can continue to operate, and to make money, not just in the event of a disaster, but also following smaller disruptions, e.g. the
departure of key employees such as the CEO, problems with suppliers, fraud or criminal activity, negative publicity or cyber-attacks.
In the
event of the key employee's death, the policy's death benefit is payable to the company which can be used to provide continued supplemental benefits or to provide a lump sum benefit to the executive's named beneficiary.
The goal when valuing a key person for life and disability insurance is to get the correct amount of coverage based on the specific needs of the business but that also corresponds to the realistic loss associated with the death or disability
of the key employee from the insurance company's viewpoint.
Rumours of a pending sale of a business or layoffs are worrisome and distracting to employees, resulting in lost productivity, higher benefit costs, poorer client relations and service, and
attrition of key employees.
One approach is to buy two or more PhoneGnomes to make free calls among branch offices and the
homes of key employees (a two - pack is $ 199).
«Also, a number
of our key employees here in Canada are originally from India, so having operations there makes it easier than in China.»
These items include (but are not limited to) determining the value of the farm, retirement planning for the transferor, strategic business planning,
transition of key employees, treatment of non-farming versus farming children, and the overall tax considerations.»
List any supporting information or other additional information that you couldn't fit in elsewhere, such as
resumes of key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit history.
We work with clients to implement employment agreements, employee equity programs, retention agreements, and other incentive programs in ways to ensure the services
of key employees during the postacquisition period.
She has also done a considerable amount of work relating to the drafting and enforcement of restrictive covenants and the post-employment
obligations of key employees.
Our experience includes providing sophisticated advice on: the purchase and sale of businesses and their assets; corporate governance and management issues; confidentiality and non-compete agreements; employment agreements; vendor and supplier agreements; professional services agreements; the addition or
termination of key employees; and many other transactional matters.
(f) each of [NAME
OF KEY EMPLOYEES] entering into employment agreements with Buyer on terms agreed with Buyer;
With key man insurance in place, if one
of your key employees goes down, your business will receive the proceeds of the policy and can sustain operations until contingencies plans are finalized.
Phrases with «of a key employee»