Canada has great beer and hockey, some great musicians (Rush, Arcade Fire, Neil Young, Joni MItchell), and some good ideas about corporate compensation.
Canada’s Deferred Profit Sharing Plan (DPSP) is an added component to give flexibility in retirement benefits. Companies get to write off periodic profit sharing among all employees, and it goes into tax deferred status to be either invested or transferred into a retirement account, or withdrawn and taxed.
Now if Canada could cut their extraneous and redundant taxes so that companies had more of a profit to actually share, the DPSP could be a major model for other countries’ global corporate compensation reform, instead of a sidebar.
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Finance: What is Deferred Compensation?8 Views
Finance allah shmoop what is deferred compensation Well you don't
get it today You get it next year at some
point you know differed If you've gotten paid today it
would have binford but then it was deford's so well
yeah it's money you don't get right now Yeah so
whywould compensation be deferred Well lotsa reasons think about a
bonus that a sales person might earn through out the
year like they get two grand in bonus money payable
next year for each month that they sell over four
pounds of yellowcake uranium powder Bob here did it in
january messed around in february and march and was a
good boy in april may and june and then on
lee hit one more sales goal ahead of christmas doing
four pounds in uzbekistanian november So bob had five months
hitting his sales bonus target and we'll have owed to
him ten grand in bonus money e compensation that was
deferred and noting that all bonuses are paid in january
of the following year like it's deferred to the following
year So from the company's perspective they show deferred compensation
as a line item or a thing on their balance
Sheet is a liability And then they converted to being
an expense when they pay everything out the first month
of the next year so come january Bob will be
very happy with his healthy bonus That is you know 00:01:29.357 --> [endTime] assuming he's still around to enjoy it there No
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