You've heard the adage, "It takes money to make money." That is very often true. Similarly, it takes income to pay income taxes. If you are in a position where you are offered deferred compensation, you may have the opportunity to pay less in income taxes and have more money when you need it the most.

If part of your compensation package includes access to an Employee Stock Purchase Plan (ESPP), it could provide you with an easy way to purchase company stock at a discount. While this may give you an opportunity to build your wealth, the tax rules associated with ESPPs may introduce unintended consequences.

Editor’s Note: This article was co-authored with D.L. Thomas.No one thought 2020 would be like this: a global health crisis, an economic contraction and millions of Americans out of work. The rest of us, now bound to our homes, are unable to live our lives as we normally would, while essential workers are risking their lives to keep us all safe. Then, before we get to the light at the end of the tunnel, civil unrest swept across our nation.

Compensation is the most important benefit an executive can receive. It’s tempting to focus exclusively on compensation. “Money talks” after all, and executives will often depart your firm in search of a higher paycheck. But executives also expect a robust medical and retirement savings plan. If your firm is skimping on those benefit pillars, you won’t attract talent, and the talent you do have won’t stay very long.