Summary
This 8-K filing from Philip Morris International Inc. (PM) dated February 11, 2011, details executive compensation decisions made by the Compensation and Leadership Development Committee. The key information for investors revolves around the approval of restricted and deferred stock awards, as well as annual cash incentive awards for 2010 to named executive officers. These awards are subject to vesting schedules and are tied to the company's performance and compensation plans designed to maintain tax deductibility.
Key Highlights
- 1Approval of restricted and deferred stock awards for named executive officers, vesting on February 19, 2014.
- 2Grant of 2010 annual incentive awards in cash to named executive officers, with amounts reported in USD and some converted from CHF.
- 3Disclosure of pro-rated annual incentive awards for two officers who retired in 2010.
- 4Establishment of formulae for determining maximum award amounts for future equity and cash incentive compensation for 2011 and 2012, aimed at preserving tax deductibility under Section 162(m).
- 5Maximum equity award grant value for 2012 based on 0.75% of adjusted net earnings, with individual limits.
- 6Maximum incentive compensation award amounts for 2011 based on 0.6% of adjusted net earnings, with individual limits up to $12.0 million.
- 7Indication that further compensation details will be provided in the 2011 Proxy Statement.