FMA of NH May 19, 2009
Upcoming SlideShare
Loading in...5
×
 

FMA of NH May 19, 2009

on

  • 396 views

 

Statistics

Views

Total Views
396
Views on SlideShare
396
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

FMA of NH May 19, 2009 FMA of NH May 19, 2009 Presentation Transcript

  •  
  • Our Annual Sponsors:
  • Cementing Key Employee Relationships in Difficult Economic Times May 19, 2009
  • Presenters:
    • William White General Counsel Thomas Brady & Associates
    • Robin Schell Senior Counsel & Partner Jackson, Jackson & Wagner
  • Goal: Cementing Key-Person Relationships… Now is the time to refine compensation plans : … Secure Deductions…Create Incentives…Reduce Costs… Non Deductible Deductible More Admin Costs Less Admin Costs
    • Deferred Compensation Plans ( § 409A)
    • Deferred Bonus Plans ( § 409A)
    • Phantom Stock Plans ( § 409A)
    • More costly to set up, maintain and monitor. Subject to ERISA
    • Subject to Rights of Company Creditors
    • Employer Owns the Asset(s) that fund the plan
    • Can only cover Highly Compensated Key-People
    • Restricted Bonus Plans ( § 162)
    • Incentive Bonus Plans ( § 162)
    • Group Life ( § 79)
    • Less costly to set up, maintain and monitor. Minimum ERISA coverage
    • Not Subject to Rights of Company Creditors
    • Employee Owns the Asset(s) that funds the plan
    • Can cover all Key-People
    • Restricted/Incentive Bonus Plans ( § 162)
    Group Life ( § 79)
    • All employees receive $50,000 of group term life coverage tax
    • free:
    • Employee simply elects in
    • Deductible? YES
    • Taxable? NO
    • FICA/FUTA? YES
    • Key Employees receive permanent (cash value) life Coverage tax preferred:
    • Key Employee simply routes premium of any existing policy (or new policy) through the § 79 Plan
    • Deductible? YES
    • Taxable? PARTIALLY
    • FICA/FUTA? YES
    • Key Employees Under $106,500:Employer makes deductible, incentive-based bonus into a Restricted:
    • Investment Account
    • Life Insurance Policy or
    • Annuity
    • -Employee owns the account
    • -To avoid FICA/FUTA on the Bonus the Acct must be (i) Restricted until Death and (ii) Be in Life or Annuity Policy
    • Deductible? YES
    • Taxable? YES
    • FICA/FUTA? NO
    • Key Employees Over $106,500: Employer makes deductible, incentive-based bonus into a Restricted:
    • Investment Account
    • Life Insurance Policy or
    • Annuity
    • -Key Employee owns the account
    • -Account may be restricted until benchmarks or years of service are met
    • -Restriction is optional
    • Deductible? YES
    • Taxable? YES
    • FICA/FUTA N/A
  • Cementing Key Employee Relationships In Difficult Economic Times Presented By: Robin Schell, APR, Fellow PRSA Jackson Jackson & Wagner
  • Why Communicate With/ Motivate Employees?
    • Most credible sources of information
    • Most important resources to achieve competitive advantage
    • Fear of not knowing is worse than knowing the bad news
  • Understanding Environment in Which They/(Us) are Living
    • Lack of information & understanding
    • Bad news! (Stock Market, Layoffs etc.)
    • Media sensationalizes
    • Advanced technology & 24/7 news environment
    • Leaders don’t have all the answers
    • Expectations of transparent communication
    • Turf protection vs. support
  • Research First
    • How do we find out what employees are thinking, feeling, doing?
      • Formal and Informal Research
      • Word-of-mouth/Grapevine/Social Media
      • Behavior: do they stay or do they go?
  • High Anxiety, Concerns , Fear Low Anxiety, Concerns, Fear
    • Strategy:
    • High Touch
    • Secure and Hold
    • Isolate and Solve
    • Management as communicator
    • Objectives Focus
    • Tactics:
    • Face-to-Face
    • One-on-ones
    • Education: financial, stress mgmt
    • Cheerleading w/o spin
    • Small steps on critical goals
    • Customer Service Strategies
    • Employee Action/Role (ambassadors)
    • Message Strategies
    • Reality w/o fear – calming
    • Transparency
    • Education
    • Strategy:
    • Traditional but continuous comm.
    • Monitor and respond
    • Isolate and Solve
    • Supervisor as Communicator
    • Goal focus
    • Tactics:
    • No new methods but increase frequency
    • Research – dipstick, opinion leaders
    • Workshops: financial, stress mgmt,
    • MBWA senior management
    • Goals that contribute to bottom line (energy savings, customer service)
    • Employee Action/Role (ambassadors)
    • Message Strategy:
    • What makes a difference
    • Reinforce what is going right
    • Productivity & performance
    • Role of employee as ambassador
    Economic Crisis Communication Strategy
  • Examples of What’s Being Done Now
    • Actions Speak Louder: Cutting Expenses Before Jobs
    • -- Starbucks CEO salary drop, $1.2 million to under $10,000/yr.
    • -- Motorola’s freeze on pension plans/401K matches (plus CEO salary cuts)
    • -- Fed-Ex base salary cuts for CEO & senior execs
    • “ Invertising”: internal buzz-building campaigns
    • -- PepsiCo, Coke
    • -- Make sure internal & external messages are consistent!
  • Examples of What’s Being Done Now
    • Stay true to organizational values
    • -- IBM: 1 st line manager communication; severance; 1 st dibs on internal openings
    • Engage employees in selling the organization
    • -- HFHS: employee referral program
    • COMMUNICATE…COMMUNICATE…COMMUNICATE!
  • Employees As Ambassadors
    • 5% Hand-picked
    • 10% Self-Selects
    • 85% Everyone Else
  • Employees As Ambassadors
    • Place employees on Boards
    • Develop a proactive speaker’s bureau
    • “Message of the Month”
    • Engage them in a social responsibility project: original or with partner organizations
  • Employees As Ambassadors
    • 10 Most “Frequently Asked Questions”
    • Feedback Systems – What are they hearing out there?
    • Goal-driven programs (e.g. Referral Program)
  • Top 9 Recommendations
    • Be a transparent organization
    • Educate so they understand!
    • Set goals – connect personal w/organizational
    • Involve and engage all levels of employees… make it part of the culture!
    • Spotlight the role models
    • Train your spokespersons
    • Support everyone in the company – no turfing!
    • Coach the visionary for the organization
    • Communicate, communicate, communicate
  •  
  • Please mark your calendars for our next meeting! September 15, 2009
  • For More Information, Contact Our Speakers:
    • Thomas Brady & Associates
    • http://www.tbradyandassociates.com/
    • William White, General Counsel (617) 266-0019
    • Jackson Jackson & Wagner
    • www.jjwpr.com
    • Robin Schell, APR, Fellow PRSA
    • (603) 770-3607