01—Abstract
Summary
Summary of the 8-K filed June 16, 2022. Cited figures are marked; the original filing is the authoritative source.
Nasdaq, Inc. (NDAQ) has filed an 8-K report detailing the adoption of a new Deferred Compensation Plan, effective June 10, 2022.
This non-qualified plan is designed to comply with Section 409A of the Internal Revenue Code and is available on a voluntary basis to U.S. employees at the Senior Vice President level and above. The plan allows eligible employees to defer a significant portion of their base salary, bonuses, and commissions, with the company also having the option to make discretionary contributions. The plan provides participants with flexibility in managing their deferred compensation, allowing them to select investments for their accounts from a pre-approved list.
Distributions can be made in lump sums or installments, as elected by the participant. Importantly, the company's obligations under the plan are unfunded and unsecured, meaning participants are general creditors of the company, and any funds set aside remain subject to the company's creditors until distributed.
02—Key points
Key Highlights
- Nasdaq, Inc. adopted a new Deferred Compensation Plan (the “Plan”) on June 10, 2022.
- The Plan is a non-qualified deferred compensation plan intended to comply with Section 409A of the Internal Revenue Code.
- Participation is voluntary and currently limited to U.S. employees at the Senior Vice President level or higher.
- Employees can elect to defer up to 80% of their annual base salary, annual bonus, and/or commissions.
- The Company may make discretionary contributions to participant accounts.
- Deferred compensation accounts can be invested in options selected by the participant from a list provided by the administrator.
- The Company's obligations under the Plan are unfunded and unsecured contractual obligations.
03—Questions
Frequently Asked Questions
What is the primary purpose of the Nasdaq, Inc. Deferred Compensation Plan?
The primary purpose of the plan is to provide a voluntary deferred compensation program for senior employees, allowing them to defer a portion of their compensation and potentially benefit from tax deferral and investment growth, while also offering the company flexibility in compensation management.
Who is eligible to participate in this new plan?
Eligibility is restricted to U.S. employees of Nasdaq, Inc. or its subsidiaries who hold a position at the Senior Vice President level or higher. Participation is voluntary.
Are the deferred amounts guaranteed by Nasdaq?
No, the obligations of the Company under the Plan are unfunded and unsecured contractual obligations. Participants are considered general creditors of the company, and any amounts set aside remain subject to the claims of the company’s creditors until distributed.
How will the deferred compensation be paid out?
Amounts due under the Plan will be paid in cash to participants. Participants can elect to receive distributions in a lump sum or as annual installments, according to the terms and conditions outlined in the Plan.
04—Continue