MKA Executive Planners Blog

This is a story about disappearing disability income benefits.  One of the worst tragedies that can befall an executive, professional or business owner is an extended period of disability as a result of accident or illness. 

CommonWealth magazine recently posted an opinion piece by Barry Koslow that focuses on executive compensation for leaders of private colleges and universities. The article begins:

You're on your way.  Your company recently completed a round of serious financing from a major hedge fund and several significant individual investors.  Management has been beefed up so that the "idea gal" can focus on what she does best -- building the greatest and newest health gizmo, one that will improve outcomes and reduce costs.

The media and the public (not sure which drove which) have become frenzied over executive compensation, making broad-brush examples out of a few outliers.  It is time to settle down and realize the importance of a proper balance between what is actually “bad” and what is not.  Legislation and regulation are not the answer.  We need careful analysis, decision making and the willingness to act on behalf of both employees and the organization.

It is becoming more and more obvious that we all need to pay more attention to our long term need for capital accumulation.  Concerns are growing that the current dysfunction of our federal government and the continuing growth of entitlement programs may force more and more of the middle and upper classes to become self-reliant.  It is not a question of approval of the current direction of government.  It is whether the resources will be there to meet the promises made, while providing for other needs such as defense, infrastructure, etc.

Periodically, activists and the press engage in challenging the value of executives and their compensation, especially for executives at not-for-profit organizations or non-stock for-profits such as mutual banks and insurance companies.

While there are many reasons that a Board should consider, design and implement supplemental benefit plans for their top executives, professionals and performers, this discussion will focus on five of them.

So, you are a top executive at a large healthcare, not for profit or other form of business organization.  Because of the headline grabbers, most people think you are a fat cat, overpaid and sitting on top of the world.  That may be true for the few on the front page, but at a closer look is, quite often it is the other way around. 

Money?  Pensions?  Supplemental Retirement Plans (an MKA commercial)?  Health?  Family?  Activities?  Purpose? 

I don’t know or meet many executives working at human service, community service, healthcare or other not for profit organizations who work just 9:00 to 5:00 five days a week.  It’s more like 10-12 hour days, some nights, and don’t forget the weekends.  Yet, we see newspapers, television and more and more frequently government getting into the business of “gotcha” and complaining or trying to control compensation.