01—Abstract
Summary
Summary of the 8-K filed June 23, 2017. Cited figures are marked; the original filing is the authoritative source.
Ecolab Inc. (ECL) filed an 8-K on June 22, 2017, to report an amendment to its Executive Death Benefits Plan, effective June 20, 2017.
This amendment, specifically Amendment No. 6, modifies how the annual incentive component of an executive's compensation is calculated for the purpose of determining the death benefit. Previously, the calculation was based on actual cash bonuses paid, but it will now be based on the targeted annual incentive bonus at plan performance. This change primarily affects the death benefit calculation for executives who were actively employed at the time of death and covered by a universal life insurance policy.
The maximum death benefit remains $9,000,000a for active employees and $750,000 for retired employees. While this filing does not have immediate financial implications for the company's operational performance, it represents an adjustment in executive compensation and benefits that could impact the overall compensation structure and potential payouts to beneficiaries.
02—Key points
Key Highlights
- Ecolab's Compensation Committee approved Amendment No. 6 to the Executive Death Benefits Plan on June 20, 2017.
- The amendment changes the calculation of the annual incentive component for death benefit purposes.
- The calculation shifts from actual cash bonuses paid to targeted annual incentive bonus at plan performance.
- This change impacts the death benefit for actively employed executives covered by universal life insurance.
- The maximum death benefit for active employees remains $9,000,000.
- The maximum death benefit for retired employees remains $750,000.
- The company currently funds its obligations under the plan using universal life insurance policies.
03—Questions
Frequently Asked Questions
What is the main change introduced by Amendment No. 6 to the Executive Death Benefits Plan?
The primary change is in how the 'annual incentive' portion of an executive's compensation is determined when calculating the death benefit. Instead of using the actual cash bonuses paid, the amendment uses the 'targeted annual incentive bonus at plan performance'.
Who is most affected by this amendment?
This amendment specifically impacts the death benefit calculation for executives who are actively employed by Ecolab and are covered by a universal life insurance policy under the plan at the time of their death.
Are there any changes to the maximum death benefit amounts?
No, the maximum death benefit amounts remain unchanged. For an actively employed executive, the maximum benefit is $9,000,000. For a retired executive, the maximum benefit is $750,000.
Does this amendment have a direct impact on Ecolab's current financial performance or quarterly results?
This 8-K filing primarily details an adjustment to an executive compensation and benefits plan. It does not represent a material event that would immediately impact Ecolab's operational financial performance or quarterly results. The impact is primarily on the structure of executive benefits and potential future payouts to beneficiaries.
04—Continue