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Everything You Want to Know about Deferred Executive Compensation (DCP) or Nonqualified Deferred Compensation (NQDC) Plan

What is Deferred Executive Compensation (DCP)?

Deferred executive compensation is a written agreement between an employer and an employee where the employee voluntarily agrees to have part of his compensation withheld by the company, invested on his behalf, and given to him at some pre-specified point in the future.   Depending on the plan, that date could be in five years, 10 years, or in retirement.  Deferred compensation is typically only available to executives who are highly compensated employees of companies.  DCP is also known as nonqualified deferred compensation (NQDC) plan. Continue reading