Designing executive benefits packages for the modern C-suite

The turnover rate for CEOs is at a record high, with a spike in departures in the first quarter of 2024. Around 15% of all outgoing CEOs remained in their position for under two years.

Company CEOs carry more responsibility and stress than minor roles within an organization. Because stress can be so detrimental to physical and mental wellbeing, C-suite executives often seek positions that cover the potential problems that might arrive. Having certain benefits to fall back on can keep your top performers with the company even through difficult times.

What to focus on when building a C-suite package

While every individual looks for specific features in an offer package, there are some things the majority of C-suite executives seek. Visiting each of the following areas with leadership candidates can ensure your offer is the best one they receive for their needs.

1. Retirement planning

One of the benefits of holding a high-paying, high-stress position is early retirement. CEOs may have an idea to work hard for a while and then retire early. However, to do so, they need an excellent retirement package that allows them to invest more money and take advantage of company matches.

Since executives make more, they may require more funds in retirement to maintain their standard of living. You should offer a supplemental executive retirement plan (SERP) and deferred compensation packages for added security.

2. Expanded health care

Those in charge of companies often experience severe burnout by being overwhelmed with constant responsibility. Executive roles require careful attention to stress levels to avoid growing ill or snapping under the burdens.

Designing a benefits package for modern C-suite executives should include access to mental health services. In addition, many company leaders expert perks such as access to a gym and alternative services such as massages, acupuncture and steam rooms. In addition to standard health care, packages should extend to more intensive physicals and concierge medical services that don’t interrupt meetings or other important events.

3. Company perks

Consider what you can offer in the way of additional perks that might attract and retain top performers. For example, a company car, access to the organization’s jet, stock options, hefty severance packages and club memberships all add to the benefits of working for a company.

Talk to the individual about what their expectations are. A CEO rising to the position for the first time may have fewer needs than someone with decades of experience. You should revisit the package every year if you want to retain top talent, because experience breeds more perks.

4. Work/life balance

Being in constant fight or flight mode stresses people to the max and creates health issues, such as high blood pressure, insomnia and heart disease. Having ample down time to recenter yourself is as crucial to executives as any other employee.

Offer ample time off, so CEOs can be part of their children’s activities, spend time with friends and family or just take a break when needed. Ideally, even executives have cross-training, so they can step in and fill the shoes for critical positions within the company.

5. Additional life insurance

For some C-level executives, ample life insurance is a must. Particularly for executives who travel more than the average person, adding enough to ensure a young family is taken care of in a tragedy is important to company directors.

You could also offer packages including group universal life insurance, which can provide options for cash accumulation over time. Critical illness insurance provides more options should the unthinkable happen and income be cut short.

Related: Employees pressure the C-suite to prioritize ‘human sustainability’, study finds

6. Professional development

Most people in leadership roles love to learn new things and improve a little at a time. Providing opportunities to expand skills and learn new things matters to those high up in the organization so they can perform better.

Part of an executive benefits package should include opportunities for additional education, conference attendance and cover workshop fees. Since executives have many responsibilities to keep track of, finding options that let a consultant come to them for training can be a nice perk that draws in talented leaders.

7. Incentive pay

Another thing that can add to the individual’s pay structure is short and long-term incentive plans. An excellent leader will grow the company and should be rewarded for their efforts. If profits are up, you can give the CEO a percentage in the form of a bonus.

Consider the rates that benefit the company and the C-suite worker at the same time. Set challenging but attainable goals.

Stay competitive

At least once a year, review your executive benefits package. It’s best to start with a meeting that takes into account the individual leader’s needs. You can then tweak the package to suit them. Be bold and ask what you need to offer to keep them with your company. It’s best to keep the lines of communication open and let them know how much you value them rather than risk losing them to a competitor.