Content area
Abstract
A supplemental executive retirement plan (SERP) is a type of non-qualified deferred compensation arrangement that is offered by many companies to their executives and select highly compensated employees. SERPs provide benefits that would be difficult to provide under a tax-qualified defined benefit or defined contribution plan. While there are several Department of Labor issues that may relate to a SERP (such as how broad a group the SERP can cover), this column focuses instead on certain Securities and Exchange Commission (SEC) disclosure rules employers should consider in structuring, implementing, and administering a SERP. This column also looks at how SEC disclosure requirements in the firm's proxy statement shape the way shareholders and proxy advisory firms view SERPs -- and what to do to avoid negative perceptions. A SERP may take the form of a defined benefit plan, a defined contribution plan, or as a hybrid plan incorporating elements of both defined benefit and defined contribution plans.