"Titan Group did an excellent job in assessing our current systems and offering recommendations which included new salary grades, slotting of positions within new grades and communication tools to explain the changes to our management teams. Titan Group also customized a survey covering high-volume positions to ensure our starting salaries and salary ranges were competitive with what other local employers are paying for similar jobs. The entire Titan Group team was very responsive and helpful. Our project was completed on time and on budget. I would not hesitate to recommend them."

- Cheryl Ames, HR Director, Mondial (formerly World Access)

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Executive Benefits

Executive Compensation

Titan Group provides competent and comprehensive consulting on executive compensation issues. We believe that process is the key to arriving at a strategy that meets the goals and objectives of the business, as well as the expectations of participating executives.

Executive Benefit Plan Consulting & Servicing

Titan Executive Benefits Group offers a full spectrum of services in areas such as the design, implementation, and maintenance of executive benefit plans ("EBPs"). The most common executive benefit plans are non-qualified deferred compensation plans and supplemental executive retirement plans. Our approach results in a Plan customized to:

• Attract, retain and reward senior management employees.
• Be aligned with the sponsor’s culture and overall compensation strategy.
• Be highly visible to, and appreciated by, the selected participants.
• Have a minimum impact on the sponsor's financial statements.
• Comply with income tax, ERISA, and other regulations. (Titan Group does not practice law or accountancy, but supports the sponsor's professional advisors.)
• Be properly administered and communicated with minimum effort by the sponsor’s Human Resources Department.

Retirement Income Replacement Ratio Analysis

A key component to attracting and retaining senior managers is a competitive retirement package. But what does “competitive” mean?

Compensation committees need to know the answer to that question, and the starting point is an Income Replacement Ratio (IRR) analysis. An IRR analysis is a measure of retirement income adequacy. An employee’s IRR is his/her projected retirement income (typically, from Social Security and company-sponsored retirement plans), divided by projected final compensation immediately prior to retirement.

The objective of many retirement programs is to provide long-service employees with enough income to maintain their standard of living after retirement. Recurring studies indicate that a target IRR of 75% or more is required to accomplish this objective. If an employee works for a company for a period less than “full career,” his/her target IRR is reduced, leaving a portion of the responsibility to the employee’s previous employer(s).

Plan Funding Analysis

Funding vehicles for EBPs fall into two broad categories: taxable investments and corporate-owned life insurance (COLI). The appropriate choice depends upon the nature of the Plan liability, projected timing of Plan benefit payments, the sponsor's tax bracket and cost of capital. COLI generally has a higher cost structure and less liquidity than taxable investments, but for taxable organizations often provides the most cost-effective result.

For EBPs, the term "funding" is not used in the same context as when discussing broad-based tax-qualified benefit plans. Funds set aside for future Plan obligations remain subject to the claims of the employer's creditors in the event of the employer's bankruptcy or insolvency. This credit-risk exposure is the necessary tradeoff to protect the deferral of taxation of the participants.

Employee Stock Ownership Plan (ESOP) Services

Titan Executive Benefits Group provides competent and comprehensive consulting on Employee Stock Ownership Plan (ESOP) issues. We assist our clients by analyzing their business continuity and retirement plan needs, designing a strategic approach, implementing a comprehensive plan, and providing follow-up services, such as participant recordkeeping and fiduciary compliance consulting. With this approach, we assist our clients in the following areas:

1. Strategic Assessment
   • Identify business continuity philosophy and strategy
   • Develop and clarify objectives
   • Determine feasibility of implementing an ESOP (or other employment-based equity program)
   • Assess potential dilution of existing shareholders
2. Tactical Analysis
   • Analyze and coordinate with other qualified retirement and executive compensation plans
   • Model plan design and draft key plan provisions
   • Review legal and regulatory compliance issues
   • Conduct pro-forma financial and accounting impact
3. Installation and Implementation
   • Assemble the ESOP team (valuation expert, recordkeeper, etc.)
   • Provide draft plan document(s) for review by counsel
   • Communicate plan to participants
   • Assist with regulatory filings
   • Assist in securing financing for a stock purchase
4. Ongoing Assistance
   • Provide fiduciary compliance consulting on a regular basis to “inside” fiduciaries and assist them with documentation of actions

Our considerable experience, knowledge of best practices, and attentiveness to changing trends provide timely guidance to our sponsor's Board of Directors or the ESOP Committee as it addresses ESOP issues.