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.
Frequently Asked Questions
The main purpose of the plan is to allow eligible senior management to defer the receipt of a portion of their compensation, which can provide tax advantages and help align their long-term financial interests with those of eBay Inc.
No, the plan is specifically for eligible members of the Company's senior management.
Participants can elect hypothetical investment funds for measuring the growth of their account balances. However, the plan is unfunded, meaning participants have the rights of unsecured creditors, and the chosen funds are for measurement purposes, not actual investments.
Participants can elect to receive distributions either while still employed (in lump sum or installments starting at least one year after the compensation was earned) or upon separation from service or disability (on the first business day of the seventh calendar month following the event).