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This excerpt taken from the ACI DEF 14A filed Mar 20, 2007. Non-Qualified
Deferred Compensation
The following table shows information relating to the activity
in the deferred compensation plan accounts for the executive
officers named in this proxy statement during 2006:
Table of Contents
We maintain a deferred compensation plan that allows an eligible
employee to defer receipt of his or her base salary
and/or
annual incentive payment until the date or dates elected by the
participant. The amounts deferred are invested in cash accounts
that mirror the gains
and/or
losses of a number of different investment funds, including a
hypothetical investment in shares of our common stock. The
deferred compensation plan offers participants a wide-range of
publicly-available investment funds, including international,
U.S. equity, bond and money market funds. These investment
funds are substantively similar to the investment alternatives
offered to participants of our defined contribution plan. The
plan does not offer any above-market rates of return to our
executive officers.
Participants in the plan may defer up to 85% of their base
salaries and up to 100% of their annual incentive awards. The
plan also allows participants to defer receipt of up to 100% of
the shares issuable under any restricted stock units or
performance-contingent phantom stock awards granted to executive
officers under our long-term incentive program. Participants are
always vested in their deferrals to the plan and any related
earnings. We have established a grantor trust to fund our
obligations under the deferred compensation plan. The trust has
purchased corporate-owned life insurance to offset these
obligations. Participants have an unsecured contractual
commitment by us to pay the amounts due under the deferred
compensation plan.
Under the plan, we credit each participant’s account with
the number of units equal to the number of shares or units that
the participant could purchase or receive with the amount of
compensation deferred under the plan on the date we credit the
participant’s account, based upon the fair market value of
the underlying investment on that date. We will pay the amount
of compensation deferred under the plan to the participant (or
to his or her designated beneficiary in the event of death) in
annual installments or in a lump sum, at the participant’s
election, following the participant’s termination of
employment or on the date or dates specified by the participant
in his or her payment election. The amount we pay will be based
on the number of units credited to each participant’s
account, valued on the basis of the fair market value of an
equivalent number of shares or units of the underlying
investment on the date payment occurs. We may also pay a
participant the amount of compensation deferred under the plan
prior to the date the participant initially elected to receive
payment if we determine that the employee has a demonstrated
financial hardship.
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