8-KLeadership ChangesExhibits & Filings

CBRE GROUP, INC. 8-K Report, Executive Changes (Mar 12, 2012)

Filed March 12, 2012For Securities:CBRE

Summary

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.

Key Highlights

  • 1CBRE Group, Inc. has amended and restated its Deferred Compensation Plan (DCP), effective April 15, 2012.
  • 2The DCP allows eligible highly compensated employees and non-employee directors to defer a portion of their compensation.
  • 3The company had previously suspended new deferrals into the DCP as of the end of 2008.
  • 4The amended plan details options for the distribution of deferred amounts, including lump sums and installments.
  • 5The DCP will provide a fixed interest rate of return, initially linked to the Moody's Seasoned AAA corporate bond yield.
  • 6The plan is structured as an unfunded plan and aims to comply with Section 409A of the Internal Revenue Code and ERISA.
  • 7The amendment was approved by the CEO under delegated authority.

Frequently Asked Questions

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.

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.

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.

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.