Summary
This 8-K filing from Tyco International Ltd. (not Johnson Controls International plc as initially stated in the prompt) reports on the termination of its Director Deferred Compensation Plan, effective December 4, 2008. The plan previously allowed non-employee directors to defer cash compensation and invest it in funds mirroring the company's 401(k) options. The termination was deemed to be in the best interests of the company. While the plan is terminated, non-employee directors will continue to receive their compensation packages for board service. Directors who are also employees will not receive additional remuneration for their director roles. This filing provides transparency regarding changes to director compensation structures.
Key Highlights
- 1Tyco International Ltd. terminated its Director Deferred Compensation Plan effective December 4, 2008.
- 2The termination was determined to be in the best interests of the company.
- 3The plan allowed non-employee directors to defer cash remuneration.
- 4Deferred amounts could be invested in funds mirroring the company's 401(k) investment options.
- 5Non-employee directors will continue to receive their regular compensation packages.
- 6Employee directors will not receive additional compensation for their board service.
- 7The filing is made under Item 5.02 of Form 8-K, concerning departures/elections/appointments/compensatory arrangements.
Frequently Asked Questions
The filing states that the Board of Directors determined the termination was in the best interests of the company. Specific reasons beyond this general statement are not provided in the 8-K.
No, the filing clarifies that non-employee directors will continue to receive their standard compensation packages for their service on the board of directors.
Yes, directors who are also employees of the company will continue to receive no additional remuneration for their services as a Director, which is consistent with their current arrangement.
The plan allowed non-employee directors to elect to defer a portion of their cash compensation for the year. These deferred amounts could then be invested in funds designed to track the performance of investment options available in the company's 401(k) retirement savings and investment plans.