Even the best compensation plan has room for improvement, as demonstrated by the split-dollar insurance agreement that cemented the deal between Harbaugh and the University of Michigan. This split-dollar insurance program has multiple benefits, but primarily it enhances retention in a tax-efficient manner. Harbaugh’s contract and this amendment expire in December 2021.
However, a clause allows both parties to renegotiate to make sure Harbaugh’s salary is aligned with today’s market value. This article describes how Michigan kept its team intact. Read on to discover how an insurance-based strategy can help you retain top performers.