This excerpt taken from the DTV DEF 14A filed Apr 28, 2006.
Deferred Compensation Plan
The DIRECTV Group, Inc. Executive Deferred Compensation Plan, or Deferred Compensation Plan, is a pre-tax savings plan in addition to what may be available in the Company's 401K Plan and Excess Savings Plan.
Participation in the Deferred Compensation Plan is limited to senior management or highly compensated employees of DIRECTV Group or its subsidiaries as determined by the CEO and who
satisfy certain income or net worth thresholds. An executive may elect to save annually any combination of base salary (up to 50%), bonus (up to 80%) and long-term incentive awards including stock awards (up to 80%), or elect not to participate at all. The Company provides a 4% match on base salary and bonus contributions. Company-matching vests 100% at the end of three years of service and not before. There is no pro rata vesting.
At this time, there are two investment funds available in connection with the Deferred Compensation Plan. Cash deferrals from base salary, bonus and cash long-term incentive awards earn interest at an average US Treasury 10-year Bond rate. The rate is fixed each October for the upcoming Plan year. Currently, the Company provides a rate of 120% of this bond rate. The 2005 interest rate was 4.926% and no portion of the interest is above market rates. Stock contributions are maintained as stock units. The value of stock units rises and falls with the market value of DIRECTV common stock.
The Deferred Compensation Plan is not funded and participants are unsecured general creditors of the Company. Benefit payments are not protected from Company insolvency or bankruptcy. Further, the Deferred Compensation Plan is not a qualified pension plan and benefits cannot be rolled over to an IRA or other qualified pension plan.
As of December 31, 2005, Mr. Hunter is the only Named Executive Officer that had elected to participate in this plan.