Deferred Compensation
Deferral plans have been around since ERISA was established back in the early seventies. However, they have really emerged as popular rewards programs for companies of all sizes in the past 10 years or so as government restrictions have limited what can be accomplished through traditional, qualified retirement plans. Through a deferral plan, an employer can provide a mechanism by which employees can defer income on a pre-tax basis and earn tax-deferred returns. As opposed to qualified retirement plans like 401(k), there are no (government-imposed) limits on the amount an employee can defer. Companies can choose to make contributions on behalf of employees (either as a match or as a kind of "defined contribution" retirement plan), allow employee deferrals only or both. These plans can also be set up to provide investment choices (similar to a 401(k) plan) for participants or to simply have a fixed interest rate credited to the deferral accounts.

Phantom Stock Plans
A plan of this type is designed for companies that do not want to issue real stock but want to simulate that effect. Under a phantom stock plan, individuals receive "phantom" shares that are not real stock, but are valued similarly. These shares are issued based upon individual performance and can be tied directly to the company's value or to a formula of the company's choosing. Phantom stock plans are designed to mature after five or more years and are, effectively, a kind of deferred compensation plan tied to the value of the business. These plans, like deferral plans, are set up for a select group of employees. In fact, they can't be given to all employees, rather, only those that are "management" or "highly compensated."