Originally Posted by
Check Essential
The executives secretly set up what were called "Secular Trusts" to pay themselves millions right out of the Delta treasury just prior to declaring bankruptcy.
The trusts were all fully funded and untouchable by the creditors.
Management said it was a "retention program" to keep top talent from leaving a bankrupt company. That's where "SERP" acronym comes from. "Supplemental Executive Retention Program".
Except, as soon as their trusts were funded, they all left.
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Not the precise definition. A SERP is a NQDC "top hat" plan typically granted to execs at larger companies. They do NOT conform to the 401(a) rules (thus the Non-Qualified part of NQDC). A SERP is a Supplemental Executive RETIREMENT PLAN. They typically have nothing to do with retention and are ubiquitous at large healthy companies.
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