Summary
Quanta Services, Inc. (PWR) filed an 8-K on January 27, 2014, reporting the approval of its new Nonqualified Deferred Compensation Plan (the "Plan") by its Compensation Committee on January 22, 2014. This plan allows designated individuals, including non-employee directors and key employees, to defer a portion of their cash compensation and/or settle restricted stock units. The Plan aims to provide a mechanism for valuable employees to defer compensation, potentially enhance their retirement savings through employer matching contributions that complement the existing 401(k) plan, and offer flexibility in distribution options.
Key Highlights
- 1Approval of the Quanta Services, Inc. Nonqualified Deferred Compensation Plan (the "Plan") on January 22, 2014.
- 2The Plan enables designated individuals, including non-employee directors and key employees, to defer cash compensation and/or settlement of restricted stock units.
- 3Participants can defer up to 75% of their salary.
- 4A key feature is an employer matching contribution for participants who defer the maximum allowed under the 401(k) Plan, designed to bridge the gap between the company match and the employee's deferred amount.
- 5The Company may also make discretionary employer contributions to the Plan.
- 6Vesting of employer contributions is subject to a schedule, with accelerated vesting upon a change in control, participant death, or retirement.
- 7Distributions are generally tied to separation from service, disability, or a selected date, with options for lump sum or installment payments, and potential for delayed distribution or withdrawal due to unforeseen emergencies.
Frequently Asked Questions
The primary purpose of the Plan is to provide eligible employees, including non-employee directors and key personnel, with an opportunity to defer a portion of their cash compensation and/or settle restricted stock units. It also allows for potential employer matching and discretionary contributions, aiming to enhance long-term compensation and retirement benefits for key individuals.
Eligibility is restricted to individuals designated by the Company from time to time, which includes non-employee directors, key employees, independent contractors, and consultants of Quanta Services, Inc. and its subsidiaries.
For employees who defer the maximum amount legally permitted under the company's 401(k) Savings Plan, Quanta Services will provide an employer matching contribution under this new plan. This match is intended to cover the difference between a full 3% match plus 50% of the next 3% of deferred compensation and the maximum match available under the 401(k) Plan for that year.
Contributions can be forfeited upon termination of employment for cause or if the participant engages in competitive activities against Quanta Services or its affiliates. Vesting of employer contributions is also subject to a schedule, but acceleration occurs upon a change in control, the participant's death, or retirement.