Summary
Johnson & Johnson (JNJ) announced the adoption of a new Deferred Compensation Plan (the "Plan") effective November 21, 2023. This unfunded, nonqualified plan allows eligible management and highly compensated employees, including named executive officers, to defer a portion of their pre-tax base salary and annual cash performance bonuses. Participants can defer up to 50% of their base salary and 100% of their annual cash bonus for the following year. All amounts deferred, along with any investment gains or losses, are immediately vested with the employee. This plan replaces the previous Executive Income Deferral Plan (EIDP) for future deferrals, while existing EIDP balances will transition to the new plan's terms regarding payment timing and investment options.
Key Highlights
- 1Johnson & Johnson has established a new Deferred Compensation Plan for eligible employees, including executive officers.
- 2The plan allows for pre-tax deferral of up to 50% of base salary and 100% of annual cash performance bonuses.
- 3Participants have immediate 100% vesting in their deferred amounts and any associated investment returns.
- 4The new plan replaces the Executive Income Deferral Plan (EIDP) for new deferral elections.
- 5Existing EIDP balances can be adjusted for payment timing and investment options to align with the new plan.
- 6The plan is unfunded and nonqualified, meaning it is not backed by company assets and is subject to specific tax rules.
- 7Payments from the plan are generally made upon separation from service or an elected in-service payment date.