01—Abstract
Summary
Summary of the 8-K filed December 16, 2005. Cited figures are marked; the original filing is the authoritative source.
Ecolab Inc. (ECL) filed an 8-K on December 15, 2005, to report significant amendments to two executive compensation plans.
The Ecolab Mirror Savings Plan was amended effective January 1, 2006, to comply with the American Jobs Creation Act of 2004. Key changes include prohibiting participants from investing deferrals and matching contributions in the Ecolab Stock Fund and making investment elections irrevocable. Participants can still transfer existing balances out of the Stock Fund but cannot transfer them back in.
Additionally, the Ecolab Executive Death Benefits Plan was amended effective August 12, 2005, to increase the maximum lump-sum death benefit for qualifying executives from $3,000,000 to $9,000,000a. This plan provides a death benefit of up to three times an executive's prior year compensation. These amendments primarily affect the company's executive compensation structure and how deferred compensation and death benefits are managed.
02—Key points
Key Highlights
- Ecolab Inc. amended its Mirror Savings Plan and Executive Death Benefits Plan, as disclosed in an 8-K filing on December 15, 2005.
- The Mirror Savings Plan amendment, effective January 1, 2006, aligns with the American Jobs Creation Act of 2004 by making investment elections irrevocable and restricting new investments in the Ecolab Stock Fund.
- Participants in the Mirror Savings Plan can no longer invest deferrals and matching contributions in the Ecolab Stock Fund and can only transfer existing balances out, not back in.
- The Executive Death Benefits Plan amendment, effective August 12, 2005, significantly increased the maximum lump-sum death benefit to $9,000,000, up from $3,000,000.
- The Death Benefits Plan offers eligible executives a benefit of up to three times their prior year's compensation.
- These amendments are primarily related to the structure and limits of executive compensation and do not appear to have a direct impact on the company's overall financial performance reported in this filing.
03—Questions
Frequently Asked Questions
What are the main changes to the Ecolab Mirror Savings Plan?
The Mirror Savings Plan was amended to comply with the American Jobs Creation Act of 2004. Effective January 1, 2006, participants can no longer invest deferrals and company matching contributions in the Ecolab Stock Fund, and investment elections become irrevocable. Existing balances can be moved out of the Stock Fund but not back in.
How has the Ecolab Executive Death Benefits Plan been changed?
The maximum lump-sum death benefit payable to the beneficiary of a qualifying executive has been increased significantly from $3,000,000 to $9,000,000. This amendment was effective as of August 12, 2005.
Are these changes related to the company's overall financial performance?
This 8-K filing specifically details amendments to executive compensation plans. While these plans are part of the overall compensation structure, the information provided does not directly report on Ecolab's current financial performance or operational results.
Who is eligible for the increased death benefit?
The increased death benefit applies to qualifying executives. The plan provides a benefit equal to three times the executive's prior year compensation, capped at $9,000,000. A separate provision exists for post-retirement death benefits for executives meeting certain age and service requirements.
04—Continue