Tyson Foods’ Executive Compensation Plan provides a strong foundation with additional benefits you’d expect from a Fortune 500 leader:
Equity Compensation (RSUs, PSUs, and Non-Qualified Stock Options)
Deferred Compensation Plan (Executive Savings Plan)
Age-Based Deferred Compensation Distributions – Choose a specific year for payouts, even long after leaving the company.
The 5+1 Voluntary Separation Program – Officers with five years of service who give one year’s notice can receive a full year of salary after leaving.
Your compensation package is a powerful tool that, when evaluated correctly, can be structured to maximize its full earning potential. At Heritage Oak, our goal is to integrate your entire financial landscape with your benefits elections to ensure every decision works toward your long-term success.
Key Components of Your Compensation:
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Equity Compensation: RSUs, PSUs & Stock Options
RSUs: Granted annually (typically November), vest after three years. Taxed as ordinary income at vesting.
PSUs: Awarded to senior executives based on performance metrics, with a 3-year cliff vest schedule.
Stock Options: Right to buy Tyson stock at a set price; vest over time and expire after 10 years. Tax due at exercise, giving you control over timing.
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Planning Opportunities:
Use equity cash flow to boost contributions to tax-advantaged accounts (401(k), ESP, HSA).
Understand the upside and risk of stock options for aspirational goals.
Adjust tax withholding—default is 22%, often lower than actual rate.
Diversify Tyson stock to reduce concentration risk.
Executive Savings Plan (ESP)
Contributions: Defer up to 100% of bonus and 60% of salary.
Distribution Flexibility: Choose a specific year for payouts—even after leaving Tyson.
Company Match: 4% on eligible compensation above IRS limits ($350K in 2025).
Planning Opportunities
- Defer income now (up to 37% tax rate) and receive it later at a potentially lower rate
- Compare tax savings vs. lost 401(k) match (Tyson does not offer a Restoration Plan).
- Manage company credit risk inherent in non-qualified plans.
401(K) Plan
Match: Tyson offers a generous match, and we want to ensure that you are on track to contribute your full legal match for the year.
Prioritization: Knowing if maxing out your 401(k) before other investments makes sense for you.
Pre-Tax vs. Roth: For those in high tax brackets, pre-tax contributions often provide greater long-term benefit. Find out more on what form of contribution makes sense for you.
Other Notable Perks
5+1 Voluntary Separation Program: Full year of salary after leaving with proper notice.
HSA Plan: Important to consider as another vehicle to reduce income tax
Executive Rewards Allowance: Annual allowance for financial planning, health, and lifestyle services.
The Bottom Line
For Tyson executives, the most important decisions usually come down to:
- How to manage equity compensation.
- How to maximize tax savings with the ESP.
Timing matters. Tax implications matter. Every decision impacts your long-term financial picture.
At Heritage Oak Wealth Advisors, we help Tyson leaders:
- Navigate equity vesting and tax strategies
- Optimize ESP elections for maximum tax savings
- Coordinate 401(k), ESP, and equity for a holistic plan
Heritage Oak Wealth Advisors is not affiliated with Tyson. While Heritage Oak communicates with its clients regarding Tyson employee benefits and educates itself on available Tyson benefits, there is no guarantee that the information provided is accurate or complete. Tyson employees are encouraged to contact their employer directly with any questions regarding their specific employee benefits.