Summary
Eversource Energy (formerly Northeast Utilities) filed this Form 8-K on December 15, 2008, to report amendments to the executive employment agreements of its Named Executive Officers (NEOs). The primary driver for these amendments, effective January 1, 2009, was to ensure compliance with Section 409A of the Internal Revenue Code. This compliance is crucial to prevent the imposition of excise taxes on executive compensation payments. These amendments address the form and timing of payments and allowable elections under the existing agreements. The company explicitly states that these changes are necessary for tax compliance and will not result in an increase in compensation for the executives. Non-material clarifications to existing benefits were also included.
Key Highlights
- 1Amendments to employment agreements for key executives (CEO, CFO, COO, General Counsel) were approved by the Compensation Committee.
- 2The amendments are effective January 1, 2009.
- 3The primary purpose of the amendments is to ensure compliance with Section 409A of the Internal Revenue Code.
- 4Compliance with Section 409A aims to avoid excise taxes on executive compensation payments.
- 5Changes focus on the form and timing of payments and allowable elections under the agreements.
- 6No increase in executive compensation is expected as a result of these amendments.
- 7Certain non-material changes were made to clarify existing benefits.