Scenario:
Jonathan, 45, was the CEO of a growing engineering consultancy with 48 employees. His firm had built a reputation for high-level project management and technical expertise, but he struggled with keeping top leadership talent engaged.
Senior executives and project leads were frequently being poached by competitors, who offered them equity stakes or more lucrative long-term compensation packages. While Jonathan could offer competitive salaries, he didn’t have the resources to give away equity or significantly raise base pay without straining company cash flow.
As a result, morale among senior employees was declining, and turnover was increasing. Losing just one senior engineer cost the company over $150,000 in recruitment, training, and lost client relationships.
The Risk:
Without a way to reward and retain key employees, Jonathan risked losing his best leaders, weakening the firm’s competitive edge. High turnover could have resulted in lost contracts, disrupted project delivery, and stalled growth. If the trend continued, Jonathan might have faced a valuation drop, making it harder to secure investors or eventually sell the company at full value.
How Rock Solid Financial’s Strategic Planning Could Help:
If Jonathan had implemented an Executive Bonus Strategy using Cash Value Life Insurance, he could have offered a high-value, long-term retention benefit—without affecting company equity or increasing base salary expenses.
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The company could have paid bonuses into a cash-value life insurance policy for each executive, providing a tax-advantaged compensation tool that accumulates value over time.
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These policies could have grown tax-deferred, giving executives long-term financial security while remaining liquid when needed.
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Because the policy would have been structured as a golden handcuff, executives might have had a strong incentive to stay with the company—knowing that leaving would mean forfeiting future policy benefits.
Instead of struggling to compete with larger firms on salary alone, Jonathan could have used an innovative financial strategy to reward and retain top talent, securing his company’s leadership team for years to come.
If this sounds like you or it’s a scenario you’d like help avoiding, we can help. Book a consultation today.
