Summary
Freeport-McMoRan Inc. (FCX) filed an 8-K on May 5, 2005, to report an amendment to its Supplemental Executive Retirement Plan (SERP). This amendment, approved by the Corporate Personnel Committee and the Board of Directors, modifies the calculation of the final average pay for determining SERP benefits. Specifically, it adjusts how bonuses are factored into the calculation and establishes new limits for bonus percentages based on the retirement year. The primary impact of this amendment is an estimated increase in the total projected SERP benefits for Chairman James R. Moffett and President and CEO Richard C. Adkerson. The filing provides updated projections for their annual SERP benefits and equivalent lump sums under the amended plan, assuming continued employment until the end of their current employment agreements. Investors should note that this filing primarily concerns executive compensation and does not appear to disclose new operational or financial performance data.
Key Highlights
- 1Amendment No. 1 to the FCX Supplemental Executive Retirement Plan (SERP) was approved on May 3, 2005.
- 2The SERP was originally established for Chairman James R. Moffett and President & CEO Richard C. Adkerson in February 2004.
- 3The amendment modifies the definition of 'final average pay' used for calculating SERP annuity benefits.
- 4New provisions limit the average bonus as a percentage of average base pay depending on the retirement year (180% for 2005 retirement, 200% thereafter).
- 5The SERP benefit is subject to reductions based on other company-sponsored retirement plans and early retirement provisions.
- 6Both Messrs. Moffett and Adkerson are fully vested in the SERP based on their credited service.
- 7Estimated increase in total SERP benefits for Moffett and Adkerson is $0.2 million annually or $1.8 million in lump sum, with specific projections for each executive.