Futures or Swaps:
Which is Optimal for Hedging Deferred Compensation Plans?
In recent years, many companies have shifted from hedging Nonqualified Deferred Compensation Plan liabilities with on-balance-sheet strategies to off-balance-sheet hedges. In this report, Atlas' Ben Eisler compares two of the most popular off-balance-sheet approaches.
Hedging Company Stock with Total Return Swaps
On recent earnings calls, numerous Fortune 1000 CFOs have had to highlight significant P&L volatility caused by the Company Stock portions of their nonqualified deferred compensation plans. One popular option to mitigate this volatility is to hedge the exposure with a Total Return Swap.
Atlas Client Passes IRS Audit of Deferral of TRS Gains, Losses, and Expenses
In this analysis, we detail how one company recently passed an IRS audit of its TRS hedge and deferred gains—benefiting from supporting tax documentation including a Will-level tax opinion, Private Letter Ruling, and related tax reporting and recordkeeping.
CFO Magazine: "There’s a lot to like about total return swaps"
CFO Magazine reports on recent research at Columbia Business School by Atlas’ Ben Eisler. The research analyzes the relative benefits of different options for hedging nonqualified deferred compensation plans.
WHAT WE DO
The nonqualified plan marketplace has seen significant change in recent years. These changes have materially impacted plans across the Fortune 1000, prompting companies to adapt, improve outcomes for plan participants, and mitigate a negative impact to corporate earnings.
Atlas Benefit Finance, established two decades ago, supports companies in managing these trends and their plans more broadly. Our proprietary tools and extensive knowledge from working with the world’s largest companies (our clients) enable companies to most effectively manage the costs and risks of these plans.
JurisPrudent Deferral Solutions offers law firms the market’s most advanced attorney fee deferral program. Leveraging our extensive experience with nonqualified deferred compensation plans and our knowledge of the features large corporations require, our attorney fee deferral plan is structured to offer unmatched safety, superior service, and complete transparency.
JurisPrudent’s fee deferral program enables successful attorneys to manage their tax burdens and cash flow requirements most effectively and securely.
NQDC INSIGHTS
A quarterly email from Atlas about the latest significant trends in the executive benefits marketplace.