What is the main purpose of the amended Motorola Solutions Management Deferred Compensation Plan?

The main purpose of the amended plan is to provide participating executives with more flexibility regarding when they can elect to defer compensation and when they can receive those deferred amounts. It also introduces company matching contributions, making it a more attractive incentive.

How does this change affect the compensation of Motorola Solutions' executives?

For executives participating in the plan, it offers a tax-advantaged way to defer compensation beyond 401(k) limits. The addition of company matching contributions means executives can potentially receive additional value on their deferred compensation, similar to a 401(k) match, which can enhance their overall compensation package and retention incentives.

Are there any restrictions on how the deferred compensation can be invested?

Yes, participants can invest their notional accounts in the same investment alternatives available under the company's 401(k) plan. However, the company stock fund is explicitly excluded as an investment option for these deferred compensation accounts.

What types of compensation can executives defer under this plan?

Executives participating in the plan can defer their base salary and cash incentive compensation, specifically amounts that exceed the limitations imposed by qualified 401(k) plans.

MSI 8-K: Leadership Changes

Summary

Motorola Solutions, Inc. (MSI) filed an 8-K report on June 5, 2013, detailing amendments to its Management Deferred Compensation Plan. The key update is the approval of an amended and restated plan, effective June 1, 2013, by the Compensation and Leadership Committee. This revised plan introduces administrative modifications aimed at providing greater flexibility for executives regarding deferral elections and distribution timing. For investors, this filing indicates a refinement of executive compensation and retention strategies. The amended plan allows participating executives, including named executive officers, to defer base salary and cash incentive compensation that exceeds 401(k) plan limitations. Importantly, the plan now incorporates company matching contributions, which can be made on the first 4% of deferred compensation (up to $50,000 for Board Officers), to offset potential lost 401(k) matches, and as discretionary amounts. While the core purpose of allowing executives to defer compensation remains, the added flexibility and the provision for company matching contributions suggest an effort to enhance the attractiveness and effectiveness of the deferred compensation program as a tool for retaining key talent and aligning executive interests with the company's long-term performance. Investors should note that the specific investment options for deferred compensation mirror those in the 401(k) plan, excluding company stock.

Key Highlights

1Motorola Solutions amended and restated its Management Deferred Compensation Plan, effective June 1, 2013.
2The Compensation and Leadership Committee approved the Amended Plan.
3The primary goal of the amendment is to provide greater flexibility in deferral elections and distribution timing for executive participants.
4Participating executives, including named executive officers, can defer base salary and cash incentive compensation above 401(k) limits.
5The Amended Plan allows notional account investments in the same alternatives available in the Company's 401(k) plan, excluding company stock.
6Company matching contributions are now included, covering up to the first 4% of deferred compensation (capped at $50,000 for Board Officers), to restore lost 401(k) matches, and discretionary contributions.
7The filing incorporates the amended plan document as an exhibit.

Motorola Solutions, Inc. 8-K Report, Executive Changes (Jun 5, 2013)

Summary

Key Highlights

Frequently Asked Questions