Deferred Compensation News and Updates

Deferred Compensation News brings you the latest information and insights on 409A nonqualified deferred compensation; institutional COLI, BOLI, and ICOLI; tax-and cost-efficient non-COLI funding strategies; low-cost tax managed non-COLI asset/liability designs; executive benefits benchmarking; succession planning and timely issues of executive pay and benefits. 
Featured image for “Top Hat Plans: What Executives and Organizations Need to Know…<em>and Why</em>”
August 28, 2020

Top Hat Plans: What Executives and Organizations Need to Know…and Why

Wells Fargo

This past January, the U.S. Government Accountability Office (GAO) published its initial findings after conducting a review of executive retirement plans, specifically, top hat plans. The study came in response to a request filed by U.S. Senators Ron Wyden (Oregon), Bernie Sanders (Vermont), and Patty Murray (Washington). This article looks at 1.) the GAO’s report; 2.) the final rulings by the U.S. District Court in the class action lawsuit of Berry v Wells Fargo & Co; and, 3.) the implications of both on Top Hat plans in general.
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October 14, 2015

Wells Fargo Deferred Pay Plan Allegedly Violates State Law

Wells Fargo

Wells Fargo Deferred Pay Plan Attacked This past May, Wells Fargo settled a lawsuit covering advisors in California and North Dakota. According to court documents, under terms of the settlement, Wells Fargo paid a total of $5.1 million to 133 advisors. Now, Wells Fargo Advisors is again facing similar allegations in a lawsuit seeking class-action status that was filed against the firm in the U.S. District Court for the Southern District of Texas. Alleging that forfeiture provisions in Wells Fargo’s Performance Award Contribution and Deferral Plan are too broad and ill-defined, the lawsuit claims that the deferred compensation plan offers to management and other highly paid Wells Fargo employees, including financial advisors, violates state laws. The claim, according to Financial Advisor magazine, states: …financial advisor forfeits his rightfully earned deferred compensation if he becomes ‘associated’ (not even employed) with ‘any financial services businesses’ (which is not defined anywhere in the Plan), anywhere in the world, and irrespective of whether that financial advisor actually competes [with Wells Fargo] in his or her new employment, for a period of three years.” David Siegel, Senior Counsel at Ajamie LLP in Houston, who represents the plaintiffs, said, “The plan does not have the “reasonable limitations that Texas law would require”
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