Summary
Dominion Energy, Inc. (D) filed an 8-K on December 16, 2020, detailing significant updates to its executive compensation and retirement plans. The company's Board of Directors adopted a new Deferred Compensation Plan, effective July 1, 2021. This plan allows eligible employees, primarily executive officers and those earning over $290,000 annually, to defer a portion of their salary, bonuses, and long-term incentive awards on a pre-tax basis, with potential company matching contributions similar to its 401(k) plans. Additionally, Dominion Energy amended its New Executive Supplemental Retirement Plan, which had been frozen since October 2019. Key changes include removing the Committee's discretionary power to forfeit accrued benefits except for cause, and restricting eligibility for certain matching contributions to those who do not make excess salary deferrals under the new plan. These changes are aimed at providing enhanced deferred compensation opportunities and clarifying terms for existing retirement benefits for a select group of senior employees.
Key Highlights
- 1Dominion Energy adopted a new Deferred Compensation Plan, effective July 1, 2021, allowing eligible executives to defer salary, bonuses, and incentive awards.
- 2The new plan permits deferral of up to 50% of salary (above IRS limits), 100% of annual cash bonuses, and 100% of cash/stock-based long-term incentives.
- 3Company matching contributions may be provided on excess compensation deferrals, subject to the same vesting as 401(k) plans.
- 4Eligible participants can elect how their deferred amounts are notionally invested, potentially including a company stock fund.
- 5Distributions from the new plan will generally be paid in cash (lump sum or up to ten installments) upon separation from service, or as a lump sum during service if elected.
- 6The New Executive Supplemental Retirement Plan (frozen since Oct 2019) was amended to eliminate certain forfeiture provisions and limit eligibility for specific matching contributions.
- 7Eligibility for the new Deferred Compensation Plan is restricted to executive officers and employees with salaries exceeding IRS limits ($290,000 for 2021).