Summary
This Form 8-K filing by The Southern Company (SO) and its subsidiaries details amendments to the Southern Company Deferred Compensation Plan and an adjustment to non-employee director compensation. The deferred compensation plan was amended to comply with Section 409A of the Internal Revenue Code, effective January 1, 2005. Key changes include allowing participants to elect specific distribution dates or schedules for receiving benefits prior to retirement and removing restrictions on investment election changes, which were previously limited to two annual periods. In addition to executive compensation adjustments, the filing also announces an increase in the annual retainer for non-employee directors. Effective November 1, 2006, the annual retainer will rise from $49,000 to $70,000. These changes impact the executive and directorial compensation structures within the Southern Company and its associated utility companies.
Key Highlights
- 1Amendments to the Southern Company Deferred Compensation Plan were approved to comply with Section 409A of the Internal Revenue Code.
- 2The deferred compensation plan amendments allow for earlier distributions based on participant elections and a fixed schedule, commencing prior to retirement.
- 3Restrictions on participant investment election changes within the deferred compensation plan have been removed, expanding flexibility beyond two annual windows.
- 4The annual retainer for Southern Company's non-employee directors will be increased from $49,000 to $70,000.
- 5This compensation adjustment for non-employee directors is effective November 1, 2006.
- 6The filing covers multiple Southern Company subsidiaries: Alabama Power Company, Georgia Power Company, Gulf Power Company, and Mississippi Power Company.