8-KLeadership ChangesExhibits & Filings

3M CO 8-K Report, Executive Changes (Nov 24, 2009)

Filed November 24, 2009For Securities:MMM

Summary

This 8-K filing from 3M Company, filed on November 24, 2009, primarily concerns an amendment to the 3M VIP Excess Plan, effective November 18, 2009. This plan allows highly compensated employees to defer a portion of their current cash compensation on a tax-favored basis. The key changes introduced by the amendment focus on clarifying the determination of eligible deferred compensation, the mechanics of employee and company matching contributions throughout the year, and ensuring its operation as an 'excess' plan for tax purposes. Crucially, the amendment removes the plan's previous vesting schedule, granting full and immediate vesting for all contributions made under the plan. This change likely aims to enhance the attractiveness and flexibility of the compensation deferral program for key personnel.

Key Highlights

  • 13M Company amended its VIP Excess Plan on November 18, 2009.
  • 2The VIP Excess Plan allows highly compensated employees to defer cash compensation on a tax-favored basis.
  • 3The amendment clarifies how eligible compensation for deferral is determined.
  • 4It also clarifies the calculation and operation of employee and company matching contributions.
  • 5A significant change is the removal of the plan's vesting schedule, resulting in full and immediate vesting for all contributions.
  • 6The amendment ensures the plan continues to operate as an 'excess' plan for tax purposes.
  • 7The amended plan document is filed as an exhibit to this 8-K.

Frequently Asked Questions

The 3M VIP Excess Plan is a deferred compensation plan designed for highly compensated employees of 3M. It allows these employees to defer a portion of their current cash compensation on a tax-favored basis, meaning taxes on this deferred income are postponed until it is paid out.

The amendment clarifies how deferred compensation is calculated, how employee and company matching contributions are determined and administered, and how the plan functions as an 'excess' plan for tax purposes. The most significant change is the removal of the vesting schedule, making all contributions immediately and fully vested upon contribution.

Removing the vesting schedule means that any compensation deferred by an eligible employee, along with any company matching contributions, becomes fully owned by the employee immediately. This provides immediate access and certainty regarding these deferred funds, regardless of continued employment duration beyond the point of contribution.

This 8-K filing specifically addresses changes to a compensatory arrangement. While the plan itself involves deferred compensation, the 8-K filing primarily details the plan's terms and amendments, not the financial impact on the company's statements. The financial implications would be reflected in subsequent financial reports.