8-KLeadership ChangesExhibits & Filings

GLOBAL PAYMENTS INC 8-K Report, Executive Changes (Sep 21, 2010)

Filed September 21, 2010For Securities:GPN

Summary

Global Payments Inc. (GPN) filed an 8-K on September 21, 2010, to report the approval of its Non-Qualified Deferred Compensation Plan (the "Plan") by the Board of Directors on September 16, 2010. This plan is designed for a select group of management or highly compensated employees, including named executive officers and non-employee directors, allowing them to defer compensation to future years for tax and financial planning benefits. Participants can elect to defer salary, bonuses, commissions, and director fees, with these deferred amounts credited to an account that tracks the performance of chosen investment alternatives. Payouts are generally made in a lump sum or installments over 2-10 years following separation from service or a scheduled withdrawal, with provisions for early withdrawal in cases of unforeseeable financial hardship. The company's obligation under the plan is unfunded and unsecured, meaning benefits are subject to the company's general funds and corporate solvency risk. While the company may establish a trust to informally fund the plan, participants do not gain any interest in specific company assets.

Key Highlights

  • 1Approval of a new Non-Qualified Deferred Compensation Plan (the "Plan") by Global Payments Inc.'s Board of Directors on September 16, 2010.
  • 2The Plan is designed for select management and highly compensated employees, including executives and non-employee directors.
  • 3Allows participants to defer current compensation (salary, bonus, commissions, director fees) to future years for tax and financial planning purposes.
  • 4Deferred amounts are credited to individual accounts and can be invested in chosen alternatives, with returns based on investment performance.
  • 5Payouts can be elected as a lump sum or over 2-10 years following separation from service or a scheduled withdrawal.
  • 6The Plan provides for potential early withdrawals in cases of unforeseeable financial hardship, subject to approval.
  • 7The Company's obligation is unfunded and unsecured, relying on general corporate funds and subject to corporate insolvency risk.

Frequently Asked Questions

The primary purpose of the plan is to allow select management and highly compensated employees of Global Payments Inc. to defer the payment of their current compensation to future years, primarily for tax and financial planning benefits.

The plan is intended for a select group of management or highly compensated employees, including the Company's named executive officers and non-employee directors.

Deferred amounts are credited to participant accounts and can be invested in one or more deemed investment alternatives selected by the participant. The value of these accounts will fluctuate based on the investment performance. Importantly, the Company's obligation to pay benefits is unfunded and unsecured, meaning participants' benefits are subject to the risk of the Company's corporate insolvency and are payable solely from the Company's general funds.

Participants can generally elect to receive their deferred compensation in a lump sum or in annual installments over two to ten years. This payment can occur following their separation from service, in a scheduled withdrawal year (which can be 2-20 years from the deferral year), or upon the earlier or later of these events. In cases of unforeseeable financial hardship, early withdrawal may be permitted subject to Plan Administrator approval.