Summary
This 8-K filing from 3M Company, dated November 17, 2008, reports on an amendment to the employment agreement of its Senior Vice President and Chief Financial Officer, Patrick Campbell. The primary purpose of the amendment is to ensure compliance with Section 409A of the Internal Revenue Code, which governs nonqualified deferred compensation plans. This suggests a proactive step by the company to align its executive compensation practices with current tax regulations.
Key Highlights
- 1Amendment to the employment agreement of Senior Vice President and Chief Financial Officer, Patrick Campbell, effective November 12, 2008.
- 2The amendment is designed to comply with Section 409A of the Internal Revenue Code regarding nonqualified deferred compensation.
- 3Changes were made to the method of paying supplemental retirement benefits from an annuity to a single lump sum payment.
- 4The lump sum payment will be the actuarial equivalent of the previously described annuity.
- 5The company will use consistent actuarial assumptions (interest rate and mortality) for calculating the lump sum payment as those used for its nonqualified pension plans.
- 6Exhibit 10.1 contains a copy of the amendment to the employment agreement.