Optimising the existing compensation package

Optimising the existing compensation package from a tax and a social security viewpoint, without changing the executive’s worker status in any manner whatsoever;

• Lump-sum allowances
• Fringe benefits

  Some of the benefits that can specifically be offered to executives:

  • a company car (plus a second company car, if appropriate);
  • free housing;
  • free heating, electricity and water;
  • free use of the services of domestic servants, gardeners and chauffeurs.
• Flexible reward offerings

  Any existing pay components that are fully taxable at progressive rates and subject to regular social security contributions can be replaced by components that fall under special rules, or alternatively the executive can be asked to take his pick from a range of components.
  The extremely strict rules under Belgian law in this respect cannot be overstressed. Each flexibility exercise requires the most accurate of preparation and implementation. For instance, the company should ensure that the executive cannot claim any vested right to a benefit that was previously replaced by another benefit.