Summary
State Street Corporation (STT) announced a significant change to its Executive Supplemental Retirement Plan through an 8-K filing on December 12, 2012. The Executive Compensation Committee approved an amendment that reduces the annual defined contribution benefits for named executive officers (NEOs) from $200,000 to zero for the 2013 compensation year. This change will impact the 2013 contributions, which are scheduled to be credited in the first quarter of 2014. Notably, the amendment does not affect the annual $200,000 deferred stock grant for each NEO, nor does it impact contributions for the 2012 compensation year or compensation years after 2013. The plan's purpose is to provide competitive retirement benefits and encourage continued employment, with the defined contribution benefit being the component that has been adjusted. The defined benefit component of the plan remains frozen.
Key Highlights
- 1Amendment to Executive Supplemental Retirement Plan approved on December 11, 2012.
- 2Annual defined contribution benefits for named executive officers (NEOs) reduced from $200,000 to $0 for the 2013 compensation year.
- 3This reduction applies to contributions scheduled for the first quarter of 2014.
- 4The annual $200,000 deferred stock grant for NEOs remains unaffected.
- 5Contributions for the 2012 compensation year are not affected by this amendment.
- 6The amendment only impacts the 2013 compensation year's defined contribution benefits.
- 7Named executive officers affected include the CEO, CFO, Vice Chairman, and other key senior executives.