Summary
Realty Income Corporation (O) has announced the approval and upcoming implementation of its Deferred Compensation Plan, effective December 1, 2024. This non-qualified plan allows eligible executives, including named executive officers, and non-employee directors to defer a portion of their compensation, including base salary, bonuses, commissions, and equity awards. The primary objective is to enable participants to defer taxable income, thereby postponing income tax obligations and facilitating retirement savings.
Key Highlights
- 1Realty Income Corporation (O) established a new Deferred Compensation Plan, effective December 1, 2024.
- 2The plan is a non-qualified deferred compensation arrangement for eligible executives and non-employee directors.
- 3Participants can defer up to 75% of base compensation and 100% of bonuses, commissions, and equity awards.
- 4The plan aims to allow executives and directors to defer income taxes and enhance retirement savings.
- 5Deferred amounts will be notionally invested, with gains or losses credited to participant accounts.
- 6Distributions can be made in lump sums or installments over up to five years (specified date) or ten years (separation from service).
- 7The plan is 'unfunded,' meaning no specific company assets are set aside for these obligations.
Frequently Asked Questions
The plan is designed to allow eligible executives and non-employee directors to defer the receipt of taxable income. This deferral helps participants postpone income tax obligations and provides a tool for saving for retirement.
Eligibility extends to selected executives, including the company's named executive officers, and non-employee members of the Company's board of directors.
Participants have the flexibility to defer a portion of their base compensation (up to 75%) and can defer up to 100% of their bonus, commission, director retainer, equity awards, and other forms of compensation.
Deferred amounts will be credited to individual accounts and notionally invested in options offered by the plan administrator. Gains or losses from these notional investments will affect the account balance. Upon a specified distribution date or separation from service, the account balance will be paid out in a lump sum or installments over five to ten years, depending on the distribution trigger and participant election.