Supplemental Executive Retirement Plan (SERP)

A Supplemental Executive Retirement Plan (SERP) is a voluntary agreement between a company and an executive that provides additional retirement benefits beyond standard company retirement plans. It’s designed to help retained key executives achieve a more comfortable retirement by offering extra financial security, often in the form of deferred compensation paid after retirement. Typically, the company funds these benefits over time, and payouts are made according to specific terms. SERPs are often used as incentives for executives to stay with the company and align their interests with long-term company success.