8-KMaterial AgreementsExhibits & Filings

PACCAR INC 8-K Report, Material Agreement (Sep 15, 2006)

Filed September 15, 2006For Securities:PCAR

Summary

PACCAR Inc (PCAR) filed an 8-K on September 15, 2006, to announce the adoption of the PACCAR Inc Deferred Compensation Plan. This plan, effective January 1, 2005, allows for the deferral of bonuses earned under the annual incentive compensation program and cash awards under the Long Term Incentive Plan. The adoption is a routine administrative action for executive compensation and is designed to comply with Section 409A of the Internal Revenue Code. From an investor's perspective, this filing is primarily informational concerning the company's executive compensation structure. It does not represent a significant change in the company's financial performance or strategic direction. Investors should note that such deferred compensation plans are common among publicly traded companies and are intended to align executive incentives with long-term company performance and retention.

Key Highlights

  • 1PACCAR Inc adopted a Deferred Compensation Plan ('the Plan') effective January 1, 2005.
  • 2The Plan allows for the deferral of bonuses from the annual incentive compensation program.
  • 3The Plan also covers cash awards earned under the Long Term Incentive Plan.
  • 4The adoption of the Plan is intended to comply with Section 409A of the Internal Revenue Code.
  • 5The Compensation Committee of the Board of Directors adopted the plan.
  • 6The filing was made on September 15, 2006.
  • 7This is an informational filing related to executive compensation policy.

Frequently Asked Questions

The primary purpose of this 8-K filing is to formally announce the adoption of the PACCAR Inc Deferred Compensation Plan, which details how certain executive bonuses and incentive awards can be deferred.

The Plan covers bonuses earned under PACCAR's annual incentive compensation program (including the Senior Executive Yearly Incentive Compensation Plan) and cash awards earned under the Long Term Incentive Plan.

No, this filing is primarily administrative concerning executive compensation. It does not report any significant changes in PACCAR's financial performance, operations, or strategic direction.

Section 409A of the Internal Revenue Code governs nonqualified deferred compensation arrangements. The plan's intention to satisfy these requirements means it is designed to comply with specific tax regulations regarding the timing and taxation of deferred compensation for executives.