01—Abstract
Summary
Summary of the 8-K filed March 12, 2012. Cited figures are marked; the original filing is the authoritative source.
CBRE Group, Inc. (CBRE) filed an 8-K on March 12, 2012, to report the amendment and restatement of its Deferred Compensation Plan (DCP), effective April 15, 2012.
This plan allows certain highly compensated employees and non-employee directors to defer a portion of their compensation to future years. The company had previously suspended new deferrals into the DCP at the end of 2008, making this amendment a notable reinstatement of the program. The amended DCP outlines various distribution options for deferred compensation, including lump-sum payments at specific future dates or upon separation from service, as well as installment payments.
The plan will offer a fixed interest rate of return, initially based on the Moody's Seasoned AAA corporate bond yield, and is designed to comply with IRS and ERISA regulations. The amendment was approved by the Chief Executive Officer under delegated authority from the Board of Directors.
02—Key points
Key Highlights
- CBRE Group, Inc. has amended and restated its Deferred Compensation Plan (DCP), effective April 15, 2012.
- The DCP allows eligible highly compensated employees and non-employee directors to defer a portion of their compensation.
- The company had previously suspended new deferrals into the DCP as of the end of 2008.
- The amended plan details options for the distribution of deferred amounts, including lump sums and installments.
- The DCP will provide a fixed interest rate of return, initially linked to the Moody's Seasoned AAA corporate bond yield.
- The plan is structured as an unfunded plan and aims to comply with Section 409A of the Internal Revenue Code and ERISA.
- The amendment was approved by the CEO under delegated authority.
03—Questions
Frequently Asked Questions
What is the significance of the amendment to the Deferred Compensation Plan (DCP)?
The amendment and restatement of the DCP, effective April 15, 2012, signals a potential resumption or formalization of deferred compensation opportunities for key employees and directors after a suspension of new deferrals since the end of 2008. This indicates a strategic decision by CBRE to re-engage with this compensation tool.
Who is eligible to participate in the amended Deferred Compensation Plan?
The DCP is available to certain highly compensated employees, including executive officers, and non-employee directors. Participation and the specific calendar year(s) for deferrals are determined at the discretion of the Committee administering the plan.
How will deferred compensation be paid out under the new plan?
Participants can elect to receive distributions in several ways: a lump sum either 5 or 7 years after the deferral year, a lump sum 6 months after separation from service, or annual installments over five years following separation from service. If an early separation occurs before designated payment dates for fixed-term deferrals, the entire balance is paid 6 months post-separation.
What is the interest rate for deferred amounts?
The DCP will offer a fixed interest rate of return. Initially, this rate will be based on the Moody's Seasoned AAA corporate bond yield, as determined by the administering Committee.
04—Continue