Executive Compensation Arrangement for Variable Universal Life Insurance and Annuities
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Summary
This agreement outlines a compensation arrangement where the company purchases variable universal life insurance policies and/or annuities for selected executives, including some named executive officers. Executives (except the CEO) can contribute up to 5% of their base salary, matched by the company, while the CEO receives a company contribution of 20% of base salary without personal contribution. Executive contributions vest immediately; company contributions vest over eight years. The policies or annuities are owned by the executives, with company approval required for most actions. The value can be accessed at retirement or under certain conditions.
EX-10.2 3 dex102.htm EXECUTIVE COMPENSATION ARRANGEMENT Prepared by R.R. Donnelley Financial -- Executive Compensation Arrangement
Exhibit 10.2
Executive Compensation Arrangement
The Company maintains an arrangement by which variable universal life insurance policies and/or annuities are purchased for executives selected by the Compensation Committee of the Board of Directors, including some named executive officers. The policies and annuities are purchased with contributions from the executives and/or the Company. Executives other than the Chief Executive Officer may contribute up to 5% of their base salaries, with the Company providing a dollar-for-dollar match. The Chief Executive Officer is not required to make a contribution. The Company contributes 20% of the Chief Executive Officer’s base salary. Executive contributions are immediately vested. Company contributions vest over eight years, beginning on the date of the executive’s employment. The Company grosses up the executive’s after-tax contributions and the Company’s contributions to compensate for taxes.
The policy or annuity is owned by the executive. Company authorization is required before any distribution or ownership rights may be exercised, except for beneficiary designations. The value of the policy or annuity is intended to be accessed at retirement, but can also be accessed in the event of disability, termination, financial hardship or death.
