Summary
This 8-K filing from Sherwin-Williams Company (SHW) on December 15, 2009, announces a significant change to its executive compensation and retirement benefit structure. The company's Compensation Committee approved the termination of its grantor trust program, effective December 31, 2009. This program, established in 2003, was designed to provide financial security for executives with substantial benefits in the deferred compensation plan, mirroring benefits from qualified retirement plans. Concurrently, Sherwin-Williams amended its 2005 Deferred Compensation Savings and Pension Equalization Plan (Deferred Compensation Plan) to allow these executives to participate starting January 1, 2010. This move effectively shifts how certain executive retirement benefits will be managed, aligning them more directly with the company's primary deferred compensation plan. Investors should note this change in executive benefit structure and its potential implications for long-term compensation and employee retention.
Key Highlights
- 1Sherwin-Williams is terminating its grantor trust program for executive benefits effective December 31, 2009.
- 2The grantor trust program was established in 2003 to provide financial security for executives with large deferred compensation benefits.
- 3All of the company's executive officers participated in the grantor trust program.
- 4Amendments have been approved for the 2005 Deferred Compensation Savings and Pension Equalization Plan.
- 5Executives previously in the grantor trust program will be eligible to participate in the amended Deferred Compensation Plan starting January 1, 2010.
- 6The Deferred Compensation Plan is a nonqualified plan that provides employer contributions that would have been received under qualified plans but for federal tax limitations.
- 7Amounts deferred in the plan are credited with market earnings based on investment choices available in qualified plans.