If you’ve reached the executive level, you’re probably already aware that your benefits package can make up a significant portion of your overall compensation. In fact, “78% of employees agree that benefits are very or extremely important in their decision to accept or reject a job.”
However, the higher up the corporate ladder you go, the more complex your benefits can be. And, if you’re a woman in an executive role, juggling a demanding career, aging parents, and kids who still need your attention (and your wallet), your plate is already overflowing.
From stock options to deferred compensation plans, executive benefits are designed to enhance your wealth, but they also come with complexities that require careful planning. Here’s how you can make the most of what’s available to you while keeping your financial future on track.
Maximize Your Deferred Compensation Plan (Without Tax Surprises)
Many executives have access to deferred compensation plans, which allow you to set aside a portion of your salary or bonus for future payout. This can be a great way to reduce your taxable income now, but the key is when you take the money later.
- If you’re planning to retire early or scale back work in a few years, consider deferring compensation to those lower-income years.
- Be mindful of payout options—some plans offer lump sums, while others provide structured distributions. A lump sum could push you into a higher tax bracket.
- Make sure you understand your company’s risk - if your employer goes under, that deferred money could be at risk.
Understand Your Stock Options (Before Making Costly Mistakes)
Stock options and restricted stock units (RSUs) can be powerful wealth-building tools, but they come with vesting schedules, tax consequences, and market risk.
- Know when your options vest and what deadlines you must meet to exercise them.
- Consider working with a financial advisor to plan when to sell so you don’t get hit with unexpected capital gains taxes.
- If you have concentrated stock risk (too much of your wealth tied to your employer), look at ways to diversify without triggering excessive tax liability.
Use Executive Life and Disability Benefits to Protect Your Family
You likely have access to company-paid life insurance and long-term disability coverage, but is it enough?
- Many employer-provided life insurance policies don’t cover as much as you think - especially if you have a high-income lifestyle, mortgage, or kids heading to college. Consider supplementing with a private policy.
- Disability insurance is just as important - if you’re the breadwinner, a long-term disability could derail your entire financial plan. Check if your policy covers own-occupation disability (meaning you’d still receive benefits even if you can work in another job).
Don’t Forget About Non-Monetary Perks
Your executive benefits package may offer financial wellness programs, legal services, or health and wellness stipends that can save you money.
- Some companies offer elder care assistance - which could be invaluable if you’re helping aging parents navigate long-term care options.
Coordinate Everything with Your Big-Picture Financial Plan
Your executive benefits don’t exist in a vacuum - they should fit into your overall financial plan, including retirement savings, estate planning, and tax strategy.
- If you have a 401(k) with a company match, maximize it first before looking at other investment opportunities.
- Work with an advisor to create a tax-efficient withdrawal strategy that includes deferred compensation, stock options, and personal savings.
- Ensure your estate plan accounts for stock holdings, deferred comp, and life insurance payouts to protect your family.
If you’ve reached the executive level, you’ve worked hard to earn these benefits, and you deserve to use them to their full advantage. Working with a financial planner can make all the difference. A professional can help you structure your benefits to reduce taxes, protect your wealth, and ensure your money is working for you - not the other way around.
If you’re ready to take control of your executive benefits and turn them into real financial security, let’s talk. We can help you create a strategy that fits your unique situation, so you can focus on what matters most—your career, your family, and your future.