Manage deferred compensation

In an ever-changing business and regulatory environment, complicated by continuing uncertainty on tax policy, senior executives' personal wealth planning decisions have become increasingly complex - particularly those involving deferred compensation.

Adapting to change
New regulations put forth in 2004 and 2005 have greatly limited the flexibility executives have enjoyed in the past regarding deferral elections. Consequently, deferred compensation can no longer be relied upon as a ready source of extra cash.

Generally, the longer you can afford to defer, the better as it postpones tax liabilities. However, your decision to defer must align with your present and future liquidity needs. In addition, it should consider the investment options available to you and your company's financial forecast as well as where you ultimately plan to live.

JPMorgan executive compensation specialists can help you evaluate your situation and develop a plan reflecting the relative importance of the different elements.

Advice from a leader
JPMorgan has counseled many senior executives about their deferred compensation plans. While we do not provide tax or legal advice, we are happy to discuss your compensation plans with you and your professional advisors. Our executive compensation specialists can help you evaluate programs designed to protect the value of your deferred compensation from rising interest rates. We also can offer suggestions for minimizing your exposure to company credit risk.

Contact a JPMorgan Advisor to learn more about more about how JPMorgan can help decide when and how to defer compensation. Alternatively, you may contact any JPMorgan office.