Interest Rate Approval for Directors and Executives Deferred Compensation Plan (2017)
The Board of Directors and Compensation Committee have set a 9.28% interest rate for the 2017 plan year under the Directors and Executives Deferred Compensation Plan, replacing the previous 10.16% rate. This rate applies to current directors and executive officers and is reviewed annually. Upon mandatory retirement after 2010, participants receive the highest interest rate from the year of retirement or the two preceding years. The plan aims to encourage retention and discourage competition after employment ends.
EXHIBIT 10.1
RATE APPLICABLE TO
PARTICIPATING DIRECTORS AND EXECUTIVE OFFICERS UNDER THE
DIRECTORS AND EXECUTIVES DEFERRED COMPENSATION PLAN
Effective for the 2017 plan year, the Board of Directors and its Compensation Committee have approved an applicable interest rate for the Directors and Executives Deferred Compensation Plan of 9.28%. That rate is a decrease from the 10.16% rate in effect for 2016, and applies prospectively to certain participants, including all participants who presently are directors or officers of the registrant. Rates are subject to annual approval by the Board, but generally remain in effect until changed. The new interest rate, within the context of the entire Plan, has been established at a level intended to provide both retention and long-term non-compete incentives. When a participant retires after 2010 due to mandatory retirement, the participant’s interest rate during retirement will be the highest rate in place over the past three years—that is, the highest of the rates applicable during the year of retirement and the previous two years.
