Executive deferred compensation is typically used to provide a benefit to a select group of key employees that falls outside of the qualified retirement plan category. Normally, an executive deferred compensation plan is designed to supplement a company’s retirement plan providing a benefit beyond what can be provided using a qualified plan. Such a plan provides an income replacement vehicle that assures that the key employee’s retirement income will be commensurate with his/her current level of compensation. Common funding vehicles include corporate-owned life insurance (COLI), sinking funds, or individual variable annuities.