8-KMaterial AgreementsExhibits & Filings

CBRE GROUP, INC. 8-K Report, Material Agreement (Mar 8, 2021)

Filed March 8, 2021For Securities:CBRE

Summary

CBRE Group, Inc. (CBRE) has filed an 8-K report detailing amendments to its Executive Bonus Plan (Amended EBP), approved by the Board of Directors on March 3, 2021. These changes, effective for the 2021 plan year and onwards, alter the methodology for calculating executive bonus awards. Specifically, the Amended EBP will now bifurcate bonus calculations into a "Financial Performance Portion" and a "Strategic Performance Portion." Under the new structure, the Compensation Committee will determine the weighting of these two portions at the beginning of each plan year. Separate adjustment factors will then be applied to each portion, and the sum of the adjusted Financial and Strategic Performance Portions will determine the executive's total annual bonus award. This revised plan aims to align executive compensation more closely with both financial and strategic objectives, offering a more nuanced approach to incentive compensation.

Key Highlights

  • 1CBRE Group, Inc. amended its Executive Bonus Plan (Amended EBP) effective for the 2021 plan year.
  • 2The amendments change how executive bonus awards are calculated following a performance year.
  • 3Bonuses will now be determined by a combination of a "Financial Performance Portion" and a "Strategic Performance Portion."
  • 4The Compensation Committee will set the allocation between financial and strategic measures at the start of each plan year.
  • 5Separate adjustment factors will be applied to both financial and strategic components of the bonus.
  • 6The total bonus award will be the sum of the adjusted financial and strategic performance portions.
  • 7The Amended EBP is intended to better align executive compensation with both financial and strategic company goals.

Frequently Asked Questions

The main change is the introduction of a dual-component structure for calculating bonus awards. Executive bonuses will now be based on a 'Financial Performance Portion' and a 'Strategic Performance Portion,' each with its own adjustment factors.

The amendments to the Executive Bonus Plan are effective for the plan year beginning in 2021.

The Compensation Committee of the Board of Directors will determine the portion of an executive's target award that will be earned based on financial performance measures and the portion based on strategic performance measures at the beginning of each plan year.

The final bonus award is calculated by applying separate adjustment factors to the 'Financial Performance Portion' and the 'Strategic Performance Portion,' and then summing these adjusted amounts together.