The purpose of this shift is to reasonably account for changes in executive pay over the course of a year and to more comprehensively account for total executive pay. Under the “compensation actually paid” calculation, the full compensation increases from $21.4 million to $64.1 million. Let’s start with caps on 401k plan savings to begin to dig into what is behind the wealth gap in benefits plans. This cap helps to level the playing field from a 401k plan savings perspective, to a certain extent. A Top Hat plan is also known as a nonqualified deferred compensation plan.

Source: Wall Street Journal June 23, 2023 14:25 UTC