<PAGE>
 
                                                                   EXHIBIT 10(G)
                                                                                


 



                        FIRST CHICAGO NBD CORPORATION 
                          DEFERRED COMPENSATION PLAN 
                           Effective January 1, 1997
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     In exercise of the authority delegated to the undersigned by the
Organization, Compensation and Nominating Committee of the Board of Directors of
BANK ONE CORPORATION, the undersigned has caused the attached document, FIRST
CHICAGO NBD CORPORATION DEFERRED COMPENSATION PLAN (Effective January 1, 1997),
to be executed this 21st day of December, 1998.



                                        BANK ONE CORPORATION
 


                                        By: /s/ Timothy P. Moen
                                           -------------------------------
                                                Timothy P. Moen
                                                Head of Human Resources

<PAGE>
 
                         FIRST CHICAGO NBD CORPORATION
                           DEFERRED COMPENSATION PLAN
                           Effective January 1, 1997

     1.  Purpose.  The purpose of the First Chicago NBD Corporation Deferred
         -------                                                            
Compensation Plan (the "Plan") is to provide individuals described in Section 3
who are employees of First Chicago NBD Corporation (the "Corporation") and its
subsidiaries and affiliates (each an "Employer"; collectively, the "Employers")
with the opportunity to elect to defer the payment of all or a portion of their
Covered Compensation.

     2.  Definitions.
         ----------- 
         (a) Beneficiary means any person or entity designated by a Participant
             -----------
on a form provided by the Plan Administrator to receive benefits in the event of
the death of the Participant. Each designation shall revoke a Participant's
previous designations and shall be effective only when filed in writing with the
Plan Administrator during the Participant's lifetime. If a Participant fails to
designate a Beneficiary in the manner provided above, the Participant's account
hereunder shall be distributed to the legal representative or representatives of
the Participant's estate.

         (b) Board means the Board of Directors of the Corporation, excluding
             -----
any member who is an officer or Employee of the Corporation.

         (c) Committee means the Organization, Compensation and Nominating
             ---------
Committee of the Board.

         (d) Code means the Internal Revenue Code of 1986, as amended.
             ----                                                     

         (e) Corporation means First Chicago NBD Corporation or its successor or
             -----------                                                        
successors and its fifty percent (50%) or more owned subsidiaries.
<PAGE>
 
          (f)  Covered Compensation means the amount of a Participant's annual
               --------------------
cash incentive bonus or bi-weekly salary, as well as any other cash
compensation, designated by the Committee as eligible for deferral. The
Committee may express such amount as a whole percentage or a whole dollar
amount, and the Plan Administrator shall communicate such limits to the
Participant prior to his or her enrollment in the Plan.

          (g)  Effective Date means the effective date of this Plan, January 1,
               --------------
1997.

          (h)  Educational Account means an account established at the election
               -------------------
of a Participant, consisting of funds the Participant elects to use for eligible
educational expenses, as provided under Section 5(c) hereof and rules
established by the Plan Administrator for the administration of Educational
Accounts.

          (i)  Eligible Employee means an Employee who satisfies the
               -----------------                                    
requirements of Section 3.

          (j)  Employee means an individual who is employed by an
               --------                                          
Employer.

          (k)  Exchange Act means the Securities Exchange Act of 1934,
               ------------                                           
as amended.

          (l)  FCC Plan means the First Chicago Corporation Compensation
               --------
Deferral Plan, as in existence immediately prior to the Effective Date.

          (m)  Investment Funds means those investment alternatives under the
               ----------------                                              
Plan which will be used to calculate the periodic investment experience of each
Participant's account and shall be the investment alternatives offered under the
First Chicago NBD Corporation Savings and Investment Plan or any other
investment alternatives designated by the Committee.

          (n)  NBD Plan means the NBD Bancorp, Inc. Deferred Compensation
               --------                                                  
Program, as in existence immediately prior to the Effective Date.
<PAGE>
 
          (o) Participant means either (i) an Eligible Employee who has elected
              -----------                                                      
to defer all or a portion of Covered Compensation, (ii) a former Employee for
whom an account is maintained under the Plan, or (iii) an individual whose
account balance from another deferral plan is transferred to this Plan, as
described in Section 3.

          (p) Plan means the First Chicago NBD Corporation Deferred Compensation
              ----                                                              
Plan.  This Plan is an amendment and restatement of the NBD Plan and the FCC
Plan.

          (q) Plan Administrator means Corporate Compensation; provided,
              ------------------                                        
however, that, the Committee shall be the Plan Administrator with respect to any
Participant who is an "officer" as defined in Section 16 of the Exchange Act.


     3.   Eligibility.  The Committee shall designate the Employees who are
          -----------                                                      
eligible to participate in this Plan.  In addition, each individual with a
balance under the NBD Plan or FCC Plan in effect prior to January 1, 1997 and
each former Employee for whom an account balance is maintained under the Plan
shall participate in this Plan to the extent of any deferred amounts that remain
unpaid.

          Subject to the approval of the Plan Administrator, the Plan may accept
the transfer of (a) any payment that would otherwise by made directly to an
individual under the terms of an agreement in effect between such individual and
the Corporation or an entity acquired by or merged with or into the Corporation;
and (b) an individual's account balance or accrued benefit from another deferral
or severance plan maintained by the Corporation or an entity acquired by or
merged with or into the Corporation at which time the individual will become a
Participant to the extent of the transferred balance.  Such transferred balance
shall be credited to the Participant's account under this Plan and shall become
subject to the terms and conditions of this Plan.
<PAGE>
 
     4.  Election to Defer Covered Compensation.  An Eligible Employee may
         --------------------------------------                           
elect to defer payment of Covered Compensation for a period established by the
Plan Administrator.  Such period may be determined by reference to a specific
date or event.  The Plan Administrator shall establish guidelines and procedures
regarding an Eligible Employee's right to elect and/or modify an election to
defer the payment of Covered Compensation.  The Plan Administrator may revise
such guidelines and procedures from time to time as it deems necessary or
appropriate.


     5.  Participant's Account.
         --------------------- 

         (a) The amount of Covered Compensation that has been deferred shall be
credited to a memorandum or book entry account maintained on behalf of the
Participant.  Amounts credited pursuant to this Plan are credited for
bookkeeping purposes only, shall not represent either a cash deposit or actual
shares or units in any of the Investment Funds, shall not give any Participant
any special right in cash or shares held or owned by the Corporation, and shall
not give rise to any cause of action by Participants against the Corporation,
except at such time as the Participant shall become entitled to receive payment
in cash in accordance with the terms of this Plan.  The Plan Administrator shall
furnish quarterly statements to Participants showing the balances in each of the
Investment Funds as of the statement date.

         (b) Amounts transferred under Section 3 from a plan, program or
arrangement maintained by the Corporation (including a plan maintained solely
for the purpose of providing retirement benefits for Employees in excess of the
limitations imposed by Sections 401(a)(17), 401(k), 402(g) and 415 of the Code)
may, in the Plan Administrator's sole discretion, be aggregated with other
deferred amounts.
<PAGE>
 
          (c) The Plan Administrator may, in its sole discretion, establish
rules under which a Participant may elect to segregate amounts from his or her
account into a separate Educational Account to be used to pay specified
educational expenses.  The Participant shall be required to make elections
regarding the establishment of an Educational Account within time periods
established by the Plan Administrator.  The Plan Administrator, in its sole
discretion, may aggregate with other deferred amounts any funds previously
designated by a Participant for allocation to an Educational Account, subject to
any restrictions and penalties provided under Section 10(d).

     6.   Investment of Participant's Account.  A Participant shall elect to
          -----------------------------------                               
have his or her account treated as if invested in one (1) or more of the
Investment Funds.  The Plan Administrator, in its sole discretion, may allow
Participant to make separate investment elections with respect to amounts
allocated to an Educational Account.  The Participant's account will be adjusted
periodically to reflect the investment experience of the Investment Funds that
the Participant elected.  Each Participant may file an election with the Plan
Administrator (in the manner prescribed by the Plan Administrator) to reallocate
the investment of his account among the Investment Funds.  The frequency, timing
and form of investment reallocation directions shall be determined by the Plan
Administrator.  Any "officer," as defined under Section 16 of the Exchange Act,
may not invest his balance in the First Chicago NBD Corporation common stock
alternative.  If a Participant fails to make an election under this Section 6,
his or her account shall be treated as though it were invested in the Investment
Fund consisting of shares of a money market fund.  In addition and
notwithstanding the foregoing, the Plan Administrator may, in its sole
discretion, elect to treat amounts allocated by a Participant to an Educational
Account as though they were invested in the Investment Fund consisting of shares
of a money market fund.
<PAGE>
 
          7.  Investment of Participant's Account - Pre-December 1, 1993
              ----------------------------------------------------------
Deferred Amounts.  Each Participant with amounts deferred under the FCC Plan as
----------------                                                               
in effect prior to December 1, 1993, shall continue to have the periodic
investment experience of his account attributable to pre-December 1, 1993
deferrals calculated pursuant to the terms of his income deferral election in
effect at the time of his deferral unless such Participant elects to participate
in the Investment Funds (in which case such Participant shall become subject to
Section 6 and may not elect the Pre-December 1, 1993 deferral option).
Notwithstanding the foregoing, effective January 1, 1999, amounts deferred under
the FCC Plan as in effect prior to December 1, 1993 shall become subject to
Section 6 and shall be invested in one of the Investment Funds as provided
thereunder.


          8.  Benefit.  A Participant shall be entitled to a distribution of his
              -------                                                           
account balance equal to the amount deferred or transferred, adjusted for the
investment experience attributable to such deferred or transferred amounts had
such amounts been invested in the Investment Funds as directed by the
Participant.


          9.  Distribution of Account Balances Pursuant to Participant's
              ----------------------------------------------------------
Election.  The Plan Administrator, in its sole discretion, shall establish rules
--------                                                                        
governing the distribution of a Participant's account, including special rules
governing the distribution of a Participant's remaining account balance at the
time of his or her (a) death or (b) termination of employment prior to
satisfying specified age and service requirements for retirement.
<PAGE>
 
     10.  Payments Prior to Death or Termination of Employment.
          ---------------------------------------------------- 

          (a) In the event of an unforeseeable emergency as determined
hereunder, the Plan Administrator may authorize the distribution of all or a
portion of the Participant's account, without regard to the payment dates
otherwise established by the Plan Administrator under Section 4, but only if the
Plan Administrator determines that such action is necessary to prevent severe
financial hardship to the Participant.  Such action shall be taken only if a
Participant (or his legal representatives or successors) shall sign an
application describing fully the circumstances which are deemed to justify the
payment, together with an estimate of the amounts necessary to prevent severe
financial hardship.  Each such application shall be approved by the Plan
Administrator, who shall certify that, according to the best of his knowledge
and belief the statements on the application are true.  In the case of a
distribution pursuant to this Section 10(a), the Participant may not elect to
defer Covered Compensation for twelve (12) months following receipt of the
payment.

          (b) For the purpose of this Section 10, the term "unforeseeable
emergency" shall mean a severe financial hardship to a Participant or his
dependents (as defined in Section 152(a) of the Code), loss of a Participant's
property due to casualty, or other similar extraordinary and unforeseeable
circumstances beyond the Participant's control.  Hardship payments shall only be
made to the extent necessary to satisfy the emergency need, and shall not be
made to the extent that the hardship is or may be relieved through other means,
including reimbursement or compensation, by insurance or otherwise, or by
cessation of deferrals pursuant to this Plan.

          (c) Upon the request of a Participant, the Plan Administrator may also
authorize the distribution of all or a portion of the Participant's account,
without regard to the payment dates established by the Plan Administrator under
Section 4, provided the portion of the Participant's account from which such
distribution is made is first reduced by an amount that shall equal the greater
<PAGE>
 
of either (i) ten percent (10%) of the applicable portion of the Participant's
account, or (ii) a "substantial penalty" as determined by the Plan Administrator
upon advice of counsel so as to assure there is no constructive receipt of
Participants' accounts under the Plan.

          (d) In the event that a Participant establishes an Educational Account
(as described under Section 5(c) hereof), the Participant may request a
distribution from his or her Educational Account in order to pay eligible
educational expenses.  The Plan Administrator shall establish guidelines and
procedures relating to (i) the types and verification of eligible education
expenses, and (ii) requests for payments from an Educational Account.  If
amounts remain in a Participant's Educational Account at the close of the period
determined by the Plan Administrator for use thereof, or if the Plan
Administrator determines that amounts paid to a Participant from his or her
Educational Account are not used for eligible educational expenses, the Plan
Administrator may reduce the amount remaining in the Participant's Educational
Account by an amount equal to the greater of (i) the amount remaining in the
Educational Account or so misused by the Participant (as applicable), multiplied
by ten percent (10%), or (ii) a "substantial penalty" as determined by the Plan
Administrator upon advice of counsel so as to assure there is no constructive
receipt of Participants' accounts under the Plan.  If the funds remaining in the
Participant's Educational Account are insufficient to make such reduction, the
Plan Administrator shall reduce the Participant's account by the amount
determined under the preceding sentence.

     11.  Acceleration of Payment.  The Chief Executive Officer or Chairman
          -----------------------                                          
of the Board of the Corporation may, in his sole discretion, accelerate any
payment under this Plan for any Participants who are not "officers," as defined
under Section 16 of the Exchange Act. The 
<PAGE>
 
Committee may, in its sole discretion, accelerate any payment under this Plan
for Participants who are "officers," as defined under Section 16 of the Exchange
Act.

          12.  Valuation of Account Prior to Distribution.  A Participant's
               ------------------------------------------                  
distributable account shall be valued as of the first business day of the month
of payment.

          13.  Administration.  This Plan shall be administered by the Plan
               --------------                                              
Administrator, and its decision on any matter involving the interpretation of
the Plan shall be binding on everyone; provided, however, that the Plan
Administrator may not take any action with respect to any benefits payable to
the Plan Administrator under the Plan unless such action could have been taken
even if he were not the Plan Administrator.  The Plan Administrator shall have
the full responsibility, power and authority to administer the Plan and, within
the limits provided by the Plan:

               (a) To determine, in its sole discretion, all questions arising
concerning the construction and interpretation of the Plan and in its
administration, including, but not by way of limitation, the determination of
the rights of eligibility under the Plan of Employees, Participants, and
Beneficiaries, the amount of their respective benefits and the timing and method
of distribution, and to interpret and remedy, if necessary, ambiguities,
inconsistencies, or omissions;

               (b) To adopt such rules and regulations as it may deem reasonably
necessary for the proper and efficient administration of the Plan and consistent
with its purpose;

               (c) To enforce the Plan, in accordance with its terms and
with the Plan Administrator's rules and regulations; and

               (d) To do all other acts, in its judgment necessary or desirable,
for the proper and advantageous administration of the Plan.
<PAGE>
 
     14.  Miscellaneous.
          ------------- 

          (a) Prohibition of Alienation.  Benefits under the Plan may not be
              -------------------------                                     
anticipated, alienated, assigned or encumbered and any attempt to do so shall be
void; except however, to the extent permitted by applicable law, the
Corporation, in its sole discretion, may reduce a Participant's account by any
amounts owing by the Participant to the Corporation.

          (b) Litigation by Participants or Other Persons.  To the extent
              -------------------------------------------                
permitted by law, if a legal action begun against the Corporation or an Employee
or director thereof, or the Board, or any member thereof, by or on behalf of any
person results adversely to that person, or if a legal action arises because of
conflicting claims to a grant payable to a Participant or Beneficiary, the cost
to the Corporation or Employee or director thereof, or the Board or any member
thereof, of defending the action will be charged to the extent possible to the
sums, if any, that were involved in the action or were payable to, or on account
of, the Participant or Beneficiary concerned.

          (c) Indemnification.  Any person who is or was a director, officer, or
              ---------------                                                   
Employee of the Corporation and each member of the Board shall be indemnified
and saved harmless by the Corporation from and against any and all liability or
claims of liability to which such person may be subjected by reason of any act
done or omitted to be done in good faith with respect to the administration of
the Plan, including all expenses reasonably incurred in the Participant's
defense in the event that the Corporation fails to provide such defense.

          (d) Rights to Employment.  Participation in the Plan shall not confer
              --------------------                                             
upon any Participant any right with respect to continued employment by the
Corporation.

          (e) Expenses.  All expenses of administering the Plan shall
              --------                                               
be borne by the Corporation.
<PAGE>
 
          (f) Other Plans.  Nothing contained herein shall prevent the
              -----------                                             
Corporation from establishing or maintaining other plans in which Participants
in this Plan may also participate.

          (g) Facility of Payment.  When, in the Plan Administrator's opinion, a
              -------------------                                               
Participant or Beneficiary is under a legal disability or incapacitated in any
way so as to be unable to manage the Participant's or Beneficiary's financial
affairs, the Plan Administrator may direct that the amount of the Participant's
or Beneficiary's payment hereunder be made to the Participant's or Beneficiary's
legal representative or to another person for such Participant's or
Beneficiary's benefit, or the Plan Administrator may direct that such amount be
applied for the benefit of the Participant or Beneficiary in any way the Plan
Administrator considers advisable.

          (h) Notices.  Any communication, statement or notice addressed to a
              -------                                                        
Participant who is a current Employee at his work location or to a former
Employee at his last post office address shown on his employer's records, will
be binding upon the Participant for all purposes of the Plan.  Neither the Plan
Administrator nor the Corporation shall be obliged to search for or ascertain
the whereabouts of any Participant.  For purposes of this Section 14(h), the
term "Participant" includes any person entitled by reason of a Participant's
death or legal disability to that Participant's deferred Covered Compensation
under the Plan.

          (i) Records.  All records held by Corporation Compensation with
              -------                                                    
respect to an Employee shall be binding upon everyone for  purposes of the Plan.

     15.  Amendment and Termination.  The Corporation, by a resolution of
          -------------------------                                      
the Committee, may amend or terminate the Plan at any time; provided, however,
that, except as may otherwise be required by law, no such amendment to or
termination of the Plan shall reduce the benefits to which a Participant (or his
Beneficiary) is entitled under the Plan as of the date of such 
<PAGE>
 
amendment or termination. The Chief Executive Officer or the Head of Human
Resources of the Corporation may amend the Plan in any non-material respect.
Whether the amendment is material or not shall be determined by Chief Executive
Officer or Head of Human Resources in his sole discretion.


          16.  Financing of Plan Benefits.  Any benefits payable to a
               --------------------------                            
Participant under the Plan shall be financed from the general assets of his
employer, and no Participant, or group of Participants, shall acquire any claim
upon any specific asset of an employer solely by reason of his being a
Participant in the Plan.  This paragraph shall not prohibit the Corporation from
transferring assets to a grantor trust for the purpose of providing benefits
hereunder, which grantor trust shall remain subject to the claims of creditors.
The accounting and recordkeeping of this Plan shall be entirely separate from
any other plan.


          17.  Gender and Number.  Words denoting the masculine gender shall
               -----------------                                            
include the feminine and neuter genders, the singular shall include the plural
and the plural shall include the singular wherever required by the context.


          18.  Benefits Intended for Select Group of Management or Highly
               ----------------------------------------------------------
Compensated Employees.  This Plan is intended to be maintained primarily for the
---------------------                                                           
purpose of providing deferred compensation for a select group of management or
highly compensated employees and shall be interpreted and administered
accordingly.
<PAGE>
 
          19.  Controlling Laws.  To the extent not superseded by Federal law,
               ----------------                                               
the laws of Illinois, without regard to its laws of conflict, shall be
controlling in all matters relating to the Plan.