8-KLeadership Changes

TJX COMPANIES INC /DE/ 8-K Report, Executive Changes (Dec 3, 2010)

Filed December 3, 2010For Securities:TJX

Summary

This 8-K filing from TJX Companies Inc. on December 3, 2010, details a new compensatory arrangement for Paul Sweetenham, Senior Executive Vice President and Group President, Europe. Due to his ineligibility for the company's standard Executive Savings Plan (ESP), a special benefit has been approved, effective from the fiscal year ending January 29, 2011, through the fiscal year ending in 2030. The arrangement involves annual performance-based matching credits on Mr. Sweetenham's pension plan deferrals and Management Incentive Plan (MIP) bonuses. The credit percentage is tied to corporate performance, ranging from 50% to 150% based on MIP payout levels between 90% and 125% of target. These credits will be held in an unfunded account with TJX UK, notionally invested, and subject to specific vesting and distribution terms.

Key Highlights

  • 1Approval of a new compensatory benefit for Paul Sweetenham, Senior Executive Vice President, Group President, Europe.
  • 2The benefit is designed for executives not eligible for the standard Executive Savings Plan (ESP).
  • 3Annual performance-based matching credits range from 50% to 150% on deferrals (up to 8% of salary) and MIP bonuses (up to 8% of bonus).
  • 4Credits are contingent on company performance under the Management Incentive Plan (MIP), requiring 90%-125% of target payout.
  • 5The program runs for the fiscal year ending January 29, 2011, up to and including the fiscal year ending in 2030.
  • 6Vesting occurs at 50% after five years and 100% at age 55, change of control, or separation due to death/disability.
  • 7Distributions are in a lump sum or up to ten-year installments, with forfeiture provisions for non-compliance or termination for cause.

Frequently Asked Questions

The main purpose of this filing is to disclose a new compensatory benefit arrangement for Paul Sweetenham, a key executive, due to his ineligibility for the company's standard Executive Savings Plan. This arrangement provides performance-based matching credits on his retirement deferrals and bonuses.

The credits are annual, performance-based matching amounts on Mr. Sweetenham's deferrals to his T.K. Maxx Pension Plan and his Management Incentive Plan (MIP) bonus. The percentage of credits ranges from 50% to 150%, and this is directly tied to TJX's corporate performance, specifically requiring a MIP payout between 90% and 125% of the target award opportunities for the relevant fiscal year.

The credit account vests at 50% after five years from the first credit date and 100% at age 55, or upon a change of control, or separation from service due to death or disability. Distributions can occur at various times, including before age 55 upon death or disability, at age 55 if employment ends for reasons other than cause, or after age 55 upon separation from service for reasons other than cause. Vesting requires compliance with confidentiality and non-competition agreements.

This is not a direct cash payment or equity grant. The credits are reflected in an account that represents an unfunded obligation of TJX UK. This account is notionally invested in mutual funds or other market investments, and the vested portion will be distributed as a lump sum or in installments.