Interest Rate Approval for Directors and Executives Deferred Compensation Plan (2012)
The Board of Directors and Compensation Committee have set an 11.3% interest rate for the Directors and Executives Deferred Compensation Plan, effective for the 2012 plan year. This rate applies to all current directors and executive officers and replaces the previous 11.5% rate. The rate is reviewed annually but remains in effect until changed. Upon mandatory retirement after 2010, participants will 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 retirement.
EXHIBIT 10.1
RATE APPLICABLE TO
PARTICIPATING DIRECTORS AND EXECUTIVE OFFICERS UNDER THE
DIRECTORS AND EXECUTIVES DEFERRED COMPENSATION PLAN
Effective for the 2012 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 11.3%. That rate is a reduction from the 11.5% rate in effect for 2011, and applies prospectively to certain participants, including all participants who presently are directors or executive officers of the registrant. Rates generally are subject to annual approval by the Committee, 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.
