Summary
First Citizens BancShares, Inc. (FCNCA) announced on February 24, 2021, the adoption of the First-Citizens Bank & Trust Company Nonqualified Deferred Compensation Plan, effective March 1, 2021. This plan is designed for a select group of management and highly compensated employees, including named executive officers, allowing them to defer a portion of their base salary and eligible bonuses on a tax-deferred basis for retirement and long-term financial goals. The company will not make any additional or discretionary contributions to the plan. Participants can elect to defer up to 80% of their eligible compensation. Deferrals will be credited with investment returns based on chosen investment options, though these are for measurement purposes only and do not represent actual investments. Account balances will be adjusted for hypothetical gains or losses. Distributions are generally paid in a lump sum upon separation from service, death, or disability, with options for installment payments elected at the time of participation. The plan is structured to comply with Section 409A of the Internal Revenue Code.
Key Highlights
- 1Adoption of a new Nonqualified Deferred Compensation Plan for eligible employees, effective March 1, 2021.
- 2Allows a select group of management and highly compensated employees to defer up to 80% of base salary and eligible bonuses.
- 3Offers tax-deferred savings for retirement and long-term financial goals.
- 4No additional or discretionary company contributions will be made to the plan.
- 5Participant deferrals are subject to hypothetical investment returns based on selected mutual funds or other deemed options.
- 6Distributions are generally made in a lump sum upon separation, death, or disability, with installment options available.
- 7The plan is designed to comply with Section 409A of the Internal Revenue Code.