8-KMaterial AgreementsExhibits & Filings

QUEST DIAGNOSTICS INC 8-K Report, Material Agreement (Oct 18, 2006)

Filed October 18, 2006For Securities:DGX

Summary

Quest Diagnostics Incorporated (DGX) filed an 8-K on October 18, 2006, reporting an amendment and restatement of its Deferred Compensation Plan for Directors, effective October 12, 2006. This amendment allows non-employee directors to defer receipt of their cash compensation, with options to invest these deferred amounts in either a cash account earning interest or a market value account tied to the company's common stock performance, or a combination of both. The key update also permits directors to defer certain stock grants received under the Director Long-Term Incentive Plan. These changes are designed to comply with new federal income tax regulations concerning compensation deferral elections. While this filing primarily details an internal governance and compensation structure adjustment for directors, it reflects the company's ongoing efforts to align director compensation with long-term company performance and comply with evolving tax laws.

Key Highlights

  • 1Quest Diagnostics amended and restated its Deferred Compensation Plan for Directors.
  • 2The amendment allows non-employee directors to defer cash compensation.
  • 3Deferred compensation can be allocated to a cash account (with interest) or a market value account (linked to DGX stock).
  • 4Directors can now also defer certain stock grants from the Director Long-Term Incentive Plan.
  • 5Changes are intended to comply with new federal income tax provisions.
  • 6The effective date of the amendment was October 12, 2006.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce the amendment and restatement of Quest Diagnostics' Deferred Compensation Plan for Directors, which involves changes to how non-employee directors can defer their compensation.

Under the amended plan, directors can choose to defer their cash compensation into either a cash account that earns interest, a market value account whose value is based on Quest Diagnostics' common stock, or a combination of both.

This filing primarily concerns the governance and compensation structure for directors and does not directly report financial results or provide forward-looking financial guidance. Its impact is more on the long-term incentive and compensation framework for the board.

Yes, the amendment includes changes designed to ensure compliance with new federal income tax provisions that govern the timing and scope of compensation deferral elections.