The most important element of a successful business is its people; more specifically, its key people. Entrepreneur Andrew Carnegie once commented:

"Take away my factories, my plants; take away my railroads, my transportation; take away my money; strip me of all these, but leave me my people and in two or three years I will have them all again."

Business owners know the value of key people in their organizations: executives who envision production at unheard-of levels; technical wizards who streamline and invent; top sales people who continually outperform their colleagues; and office managers who transform staff into finely-tuned administrative units. These people have one thing in common, they make a significant contribution to the profitability of their company. Keeping and motivating key employees takes more than just salary. Since they fall into higher tax brackets, their hefty pay hikes don't feel so hefty anymore.

Keeping key employees takes executive compensation plans and packages full of motivational benefits, including:

• deferred compensation;
• salary continuation plans;
• supplemental retirement pensions;
• retirement compensation arrangements;
• group benefit packages;
• profit sharing;
• split dollar coverage life insurance; and,
• personal financial planning.

What better way to motivate key people than to tie their compensation to the profitability of the business? Both sides benefit. Top employees earn compensation advantages and businesses retain their most valuable resource, as well as receiving valuable tax deductions.