What is the main purpose of the new Walmart Deferred Compensation Matching Plan?

The main purpose is to replace the existing SERP and ODCP with a new plan that is more aligned with the company's 401(k) plan, simpler to administer, and comparable to plans at other large companies, while aiming to provide similar value to participants without increasing costs.

Who is eligible to participate in the new Plan?

Company officers and other employees whose base compensation exceeds the IRS Section 401(a)(17) limitation are eligible to participate. They can defer salary, incentive plan payments, and bonuses.

How does the company's matching contribution work under the new Plan?

The company will match participant deferrals up to 6% of the amount by which a participant's base salary plus incentive plan payments (whether deferred or not) exceeds the IRS Section 401(a)(17) limitation. Employees must be employed on the last day of the plan year to receive the match.

What is the vesting schedule for the company's matching contributions?

Participants become vested in the company's matching contributions after three years of participation in the Plan. Years of participation in the previous ODCP will count towards this three-year vesting period.

How will deferred amounts and company contributions grow?

Participant accounts will be credited daily with interest equivalent to the yield on 10-year U.S. Treasury securities plus 2.7 percent, which is the same rate used in the ODCP.

WMT 8-K: Leadership Changes

Summary

Walmart Inc. (WMT) filed an 8-K on September 29, 2011, detailing the adoption of the Walmart Deferred Compensation Matching Plan (the "Plan"), effective February 1, 2012. This new Plan is designed to replace the existing Supplemental Executive Retirement Plan (SERP) and Officer Deferred Compensation Plan (ODCP), aligning more closely with the Company's 401(k) Plan structure and aiming for simplicity and comparability with industry peers. The primary goal is to provide comparable value to executive participants without increasing overall company costs. The Plan allows eligible officers and certain highly compensated employees to defer salary, incentive plan payouts, and bonuses. The Company will offer a matching contribution up to 6% of eligible pay that exceeds IRS limitations, provided the employee is employed on the last day of the plan year. Vesting in these company matching contributions occurs over three years, with prior ODCP participation counting towards this vesting period. The deferred amounts and company contributions will accrue interest based on U.S. Treasury yields plus a spread. This filing is significant for investors as it outlines changes to executive compensation and deferred compensation programs, impacting long-term incentives and retention strategies.

Key Highlights

1Adoption of the Walmart Deferred Compensation Matching Plan (the "Plan") effective February 1, 2012.
2The new Plan replaces the existing Supplemental Executive Retirement Plan (SERP) and Officer Deferred Compensation Plan (ODCP).
3The Plan aims to align with the Walmart 401(k) Plan structure and be simpler and more comparable to industry standards.
4Company officers and certain highly compensated employees are eligible to defer salary, incentive plan payouts, and bonuses.
5Walmart will provide a matching contribution up to 6% of eligible deferred pay exceeding IRS limits.
6Vesting in company matching contributions takes three years, with prior ODCP participation recognized.
7Deferred amounts and company contributions will earn interest tied to U.S. Treasury yields plus a spread.

Walmart Inc. 8-K Report, Executive Changes (Sep 29, 2011)

Summary

Key Highlights

Frequently Asked Questions