One method gaining in popularity is offering a sizeable life insurance policy tied to the employees remaining with the firm. Different approaches to using life insurance also are widely employed.
Big companies appear less interested in the insurance as a tool.
In addition, certain legal questions about split-dollar haven't been resolved. Many people have accepted the position that when a split-dollar agreement is terminated and the policy is fully owned by the executive, the cash value transferred to the executive is not taxable. Our attorneys do not favor that belief. But other lawyers and organizations do accept that position, and there have been no court cases to settle the dispute. Nobody really wants to mess with it too much.