Due to the turbulent times in the oil industry, ABC Oil is considering hiring a new CEO. The company is having a hard time meeting salary and benefit demands of available CEOs. The company employs 100 people throughout the ranks. ABC would like to entice finding a new CEO with retirement benefits while having a structure to also entice the new CEO to stay on board for a number of years. What type of retirement plan should they choose? and why? Things to consider: Who will the plan benefit? What type of benefit is desired? Is the plan to retain employees? Is the plan to encourage early retirement? What are the cp cash flows? Who will fund it? Who will bear risk? Will the company contribute stock? Costs?

Answer rating: 100% (QA)

The type of retirement plan that ABC Oil should choose is a Defined Benefit Plan This type of plan w... View the full answer