Allmerica Financial Corporation Description of Incentive Compensation Conversion Program
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Human Resources
- Bonus & Incentive Agreements
EX-10.65 3 dex1065.htm DESCRIPTION OF INCENTIVE COMPENSATION CONVERSION PROGRAM DESCRIPTION OF INCENTIVE COMPENSATION CONVERSION PROGRAM
Exhibit 10.65
Allmerica Financial Corporation
Description of Incentive Compensation Conversion Program
Objective
| • | Build stock ownership of Senior Leadership |
Participants
| • | Operating Committee |
Opportunity
| • | Defer a portion of 2004 IC Award into Restricted Stock Units with 3 year restriction (Principal Units) |
| - | Defer the greater of $50,000 or up to a max of 20% of current base |
| • | Company matches 15% of deferral with additional Restricted Stock Units (Premium Units) |
Timing of Election
| • | Prior to 2/4/2005 |
Taxation
| • | FICA tax is applied to deferral amount; no state or federal income tax due until restrictions lapse |
| • | Premium Units taxed when restrictions lapse |
Dividends
| • | Dividends, if paid on common shares, will be notionally credited to a dividend account and credited at the GATT interest rate |
(Note that this is different from Restricted Stock Units issued under the Long Term Incentive Program which are performance based and will not be credited with notional dividends)
| • | Application of this provision will apply to amounts issued under this program in prior years as well |
| • | Vesting and forfeiture of notional dividends will mirror the treatment of Restricted Stock Units |
Administrative Guidelines
| • | If employee leaves prior to 3 years, Principal and Premium units are returned to company. Employee will receive original amount deferred plus GATT interest rate. |
| • | If employee remains with the company for entire 3 year period, employee will receive Principal and Premium Units |
