CCP Announces New $5,000,000 Security Plan for Key Employees of Investment Banks and Hedge Funds

DANBURY, Conn., Nov. 9, 2011 /PRNewswire/ -- Corporate Compensation Plans (CCP) announced today a new $5,000,000 financial security Plan for key employees and partners of investment banks and hedge funds. The purpose of this unique disability insurance plan is to indemnify the employees against the catastrophic losses caused by career-ending injuries or illnesses.

"When highly paid individuals suffer career-ending injuries or illnesses," said Philip Davis, President of CCP, "their salaries, bonuses, and payments to their retirement plans stop. In addition, their stock options and other stock-related plans terminate. As a result, they and their families can lose millions of dollars."

For example, the proxy statement of a large investment bank shows that their 50-year-old CFO is earning $4,100,000 in salary and bonus ($2,600,000 after tax) and was awarded another $11,000,000 in stock. Assuming the same annual compensation for the next 10 years - and disregarding any stock awards - here is what can happen if he or she has a career-ending disability:

• After-tax cash income ($2,600,000 X 10) - $26,000,000
• Less disability insurance @ $500,000 a year - $5,000,000
• Loss of cash income - ($21,000,000)

Almost all highly paid individuals will face losses of this magnitude if they become totally disabled. To help solve this problem, CCP - in conjunction with one of the world's largest insurance companies - has designed a financial security plan for key personnel of investment banks and hedge funds with these features and benefits:

• They can be paid up to $5,000,000 in a lump-sum, tax-free cash benefit if an injury or illness prevents them from working in their own professions for more than 12 months.

• They can acquire their benefits on a guaranteed issue basis without medical examinations or the need to answer medical questions.

• They may be able to acquire an additional $5,000,000 of cash benefits with evidence of insurability - for a total tax-free benefit of $10,000,000.

• One of the largest insurance carriers in the world - and one that has exceptionally high financial ratings - is underwriting their protection.

"Our Plan," said Tasha Mayberry, CCP's Vice President of Marketing & Development, "will help Investment Banks and Hedge Funds attract and retain the top talent they need to compete in today's global economy. For example, if the company pays for the benefit it can restrict portability. In addition, the Plan can be a very attractive component of a 'sign-on' bonus."

The incomes of the highly paid have far outstripped their firms' traditional long-term disability insurance plans - which typically are capped at relatively low income amounts and do not cover stock awards and retirement plan contributions. The result is a huge gap between an individual's after-tax income before a disability and the amount of insurance benefits available after a disability occurs.

"CCP has built the systems necessary to administer and communicate the Plan," said John Nelson, CCP's Vice President of Technology. He added, "The purpose of these systems - which include our proprietary e-signature enrollment platform - is to make certain that human resources will not have to invest much of their time in the implementation of the Plan."

To obtain more information download a brochure or visit http://www.your5million.com.  

For nearly 40 years Corporate Compensation Plans has been providing tax-advantaged benefit programs to many of the largest companies and law firms in the country. CCP specializes in unique disability insurance plans that enhance the financial security of employees and help companies attract and retain the top talent needed to compete in today's global economy.

Contact:

Tasha Mayberry
Vice President Marketing
203.792.7300
[email protected]

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SOURCE Corporate Compensation Plans