8-KLeadership ChangesExhibits & Filings

MOODYS CORP /DE/ 8-K Report, Executive Changes (Oct 26, 2007)

Filed October 26, 2007For Securities:MCO

Summary

Moody's Corporation (MCO) announced on October 25, 2007, the adoption of the Moody's Corporation Deferred Compensation Plan, effective January 1, 2008. This plan is designed for a select group of management and highly compensated employees, including the principal executive officer, principal financial officer, and named executive officers. Its primary purpose is to allow these individuals to defer the receipt of currently earned compensation, with taxation postponed until distribution. The plan includes provisions for company matching contributions under certain circumstances and potential additional contributions tied to the company's earnings per share performance. It is structured as an unfunded "top-hat" plan under ERISA and is intended to comply with Section 409A of the Internal Revenue Code, ensuring tax-deferred benefits for participants.

Key Highlights

  • 1Adoption of a new Deferred Compensation Plan (effective January 1, 2008).
  • 2The plan is for a select group of management and highly compensated employees, including top executives.
  • 3Allows participants to defer currently earned compensation for tax-advantaged benefits.
  • 4Includes company matching contributions and potential performance-based contributions.
  • 5The plan is designed to comply with ERISA ('top-hat' plan) and Section 409A of the Internal Revenue Code.
  • 6No immediate financial impact is disclosed, but it represents a new compensation and retention strategy for key personnel.

Frequently Asked Questions

The main purpose is to allow select management and highly compensated employees to defer the receipt of currently earned compensation. This provides them with tax-advantaged benefits, as taxes on the deferred compensation are postponed until the time of distribution.

Eligibility is limited to a select group of management and highly compensated employees. This group includes, if they elect to participate, the Company's principal executive officer, principal financial officer, and named executive officers.

Yes, as an additional incentive, the Company will match participant contributions in certain circumstances. Additionally, the Company may make further contributions based on its earnings per share performance and retirement contribution eligibility for certain employees.

The plan is intended to be an unfunded 'top-hat' plan under ERISA and aims to comply with Section 409A of the Internal Revenue Code. This means the deferred compensation will not be taxed to the participant until it is distributed.