Summary
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.
Key Highlights
- 1Nasdaq, Inc. adopted a new Deferred Compensation Plan (the “Plan”) on June 10, 2022.
- 2The Plan is a non-qualified deferred compensation plan intended to comply with Section 409A of the Internal Revenue Code.
- 3Participation is voluntary and currently limited to U.S. employees at the Senior Vice President level or higher.
- 4Employees can elect to defer up to 80% of their annual base salary, annual bonus, and/or commissions.
- 5The Company may make discretionary contributions to participant accounts.
- 6Deferred compensation accounts can be invested in options selected by the participant from a list provided by the administrator.
- 7The Company's obligations under the Plan are unfunded and unsecured contractual obligations.