Employee Trust
Categories: Company Management, Retirement
Close your eyes. Arms akimbo. Fall backwards. Splat.
Most of an employee's compensation gets paid from the pool of money formed by the company's revenues. Cash comes into the company...the company pays some of it out to its employees. Salaries, insurance, etc.
Some benefits have a different structure, though. Enter an employee trust.
It's a fund set up separate from the company to administer some employee benefit. These setups include things like stock option plans or pensions.
Think of the kind of trust funds that rich people sometimes set up for their kids. Except, in this case, it’s not a 19-year-old jetsetting between the Italian Riviera and Palm Springs. This time around, the employees of the company are the trust’s beneficiaries.