8-KLeadership Changes

TJX COMPANIES INC /DE/ 8-K Report, Executive Changes (Dec 7, 2007)

Filed December 7, 2007For Securities:TJX

Summary

The TJX Companies, Inc. (TJX) filed an 8-K on December 6, 2007, detailing amendments to its Executive Savings Plan (ESP), effective January 1, 2008. These changes are significant for key employees as they expand deferral options for base salary and bonuses, and introduce a new matching contribution structure for certain senior executives. The amendments aim to enhance the attractiveness of the ESP as a long-term incentive and retention tool. Specifically, the plan now allows participants to defer up to 20% of base salary and 100% of incentive plan bonuses. A new matching program has been implemented for executive vice presidents and above who are not eligible for primary Supplemental Employee Retirement Plan benefits. The matching percentages and conditions vary based on age, deferral percentage, and the achievement of corporate Management Incentive Plan performance targets, including potential increased matches if performance targets are exceeded. This adjustment in executive compensation and savings benefits may signal the company's focus on retaining top talent during a period of evolving compensation strategies.

Key Highlights

  • 1TJX amended its Executive Savings Plan (ESP), effective January 1, 2008.
  • 2Key employees can now defer up to 20% of base salary and 100% of bonuses.
  • 3A new matching contribution program is introduced for certain senior executives (Executive Vice President and above) not eligible for primary Supplemental Employee Retirement Plan benefits.
  • 4Matching contributions are tied to age, deferred base salary percentage, and achievement of corporate Management Incentive Plan performance targets.
  • 5Matching contribution rates can increase if performance targets are exceeded.
  • 6Participants can elect distribution dates for deferred amounts at least two years from the deferral date.
  • 7Matching contributions from TJX are payable only at retirement.

Frequently Asked Questions

Effective January 1, 2008, the ESP now allows key employees to defer up to 20% of their base salary and 100% of any bonuses from annual or long-term incentive plans. Additionally, a new matching contribution program has been introduced for certain senior executives.

The matching contributions are available to employees at the level of executive vice president and above who are not eligible for primary Supplemental Employee Retirement Plan benefits. Specifically mentioned as eligible for a match are Jeffrey G. Naylor, Senior Executive Vice President, Chief Administrative and Business Development Officer, and Nirmal K. Tripathy, Executive Vice President, Chief Financial Officer.

The matching contributions are contingent upon the achievement of corporate Management Incentive Plan performance targets. The percentage of the match on the first 10% of deferred base salaries varies based on the employee's age (under 50 vs. 50 or older) and position (Executive Vice President, Division President, Senior Executive Vice President, and above). If performance targets are exceeded, the matching amounts can increase.

Participants can elect to receive their deferred amounts earlier than retirement, provided it is at least two years from the date of deferral. However, any matching contributions made by TJX are payable exclusively at the time of the employee's retirement.