Summary
eBay Inc. filed an 8-K on December 20, 2007, to report the adoption of the eBay Inc. Deferred Compensation Plan (the "Plan"), effective January 1, 2008. This plan allows eligible senior management to defer a portion of their compensation, including salary, bonuses, and potentially restricted stock units. The purpose of such plans is typically to provide tax-deferred savings opportunities for executives and align their long-term interests with the company.
Key Highlights
- 1Adoption of the eBay Inc. Deferred Compensation Plan, effective January 1, 2008.
- 2Eligible senior management can defer compensation, including salary (up to 50%), bonuses (up to 100%), and restricted stock units (up to 100%).
- 3The company may make discretionary contributions to participants' accounts.
- 4Deferral and distribution elections generally must be made in the year prior to compensation being earned.
- 5Participants can elect investment funds for determining account growth, but these are for measurement purposes only; the plan is unfunded.
- 6Participants have the rights of unsecured creditors regarding their Plan accounts.
- 7Distribution options include lump sum or installments while employed, or upon separation from service or disability.