Portland, ME (PRWEB) March 26, 2007
A new report by The Corporate Library shows that instead of waiting until CEOs retire or are fired to find out what their non-qualified deferred compensation (NQDC) plan accounts hold, shareholders are now being provided with this information every year, thanks to the new SEC disclosure regulations.
Using the information from The Corporate Library's subscription database, the study of more than 280 companies reporting under the new regulations shows more than two-thirds of CEOs have investments in a NQDC plan. The average balance in such plans is more than $5 million. The study is the second in The Corporate Library's 2007 Proxy Season Insights series.
In addition, the study indicates that the increased disclosures call into question the continued provision of defined benefit pension plans for executives. Over three-quarters of the CEOs with NQDC balances also have supplemental executive retirement plans (SERPs).
"This begs the question whether CEOs and other executives who have amassed very large sums in non-qualified savings accounts really do need additional retirement benefits in the form of a non-qualified defined benefit plan," said Paul Hodgson, The Corporate Library's senior research associate for executive compensation. "Executive compensation is the last bastion of defined benefit plans, and while most other employees must make do with a 401(k), it appears that compensation committees think the majority of executives cannot make do without both forms of retirement pay."
Some of the largest NQDC balances were found at U.S. Bancorp (USB), where former CEO Jerry Grundhofer had amassed more than $86 million. Also, Alexander Cutler, CEO of Eaton Corp (ETN), and William Weldon, CEO of Johnson & Johnson each held around $40 million.
The Corporate Library's analysis is based on figures taken from the 2007 proxy statements of 283 companies which have recently filed under the new SEC disclosure regulations.
The full report can be purchased from The Corporate Library's online store: http://www.thecorporatelibrary.com.
About The Corporate Library
The Corporate Library, headquartered in Portland, Maine, is the leading independent resource for corporate governance and compensation information and analysis of public U.S. corporations. Founded in 1999, it continues to be the authority on corporate governance matters, as evidenced by the frequency with which key media, business and government leaders seek its unique insight and objective perspectives. Additional information on The Corporate Library and its suite of online corporate governance data and analysis products can be found on its website at http://www.thecorporatelibrary.com.
Media Relations,The Corporate Library
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