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10.39 Summary of Compensation Arrangements with NEOs (Exhibit to Form 10-K for Fiscal 2013)

		
			Exhibit 10.39
		

		
			 
		

		
			Summary of Current Compensation Arrangements with Named Executive Officers 
		

		
			 (As of August 23, 2013)  
		

		
			 
		

		
			The following summarizes, as of August 23, 2013, the compensation and benefits arrangements with the Company’s President and Chief Executive Officer and the other officers who will be named in the Summary Compensation Table in the proxy statement for the Company’s upcoming Annual Meeting of Stockholders (collectively, the “Named Executive Officers”). The following is a summary of existing at-will arrangements, and does not provide any additional rights. 
		

		
			 
		

		
			The executive officers of the Company serve at the discretion of the Board of Directors. The Compensation Committee of the Board (the “Committee”) reviews and determines the compensation and benefits that are paid to the Company’s executive officers, including the Named Executive Officers. 
		

		
			 
		

		
			On July 18, 2013, the Committee approved adjustments to the base salaries of each of the Named Executive Officers that will be effective September 1, 2013.  The following table provides the base salaries for each of the Named Executive Officers as of August 23, 2013 and the base salaries that will be in effect as of September 1, 2013. 
		

		
			 
		

			
					
						Named Executive Officers

					
					
						August 23, 2013

					
					
						September 1, 2013

				
	
					
						William J. DeLaney

					
					
						$1,175,000

					
					
						$1,198,500

				
	
					
						President and Chief Executive Officer

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Robert C. Kreidler

					
					
						$700,000

					
					
						$715,000

				
	
					
						Executive Vice President and Chief Financial Officer

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Michael W. Green

					
					
						$700,000

					
					
						$715,000

				
	
					
						Executive Vice President and Group President

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Wayne Shurts 

					
					
						$575,000

					
					
						$587,000

				
	
					
						Executive Vice President and Chief Technology Officer

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						James D. Hope (1)

					
					
						--

					
					
						--

				
	
					
						Executive Vice President, Business Transformation 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						William B. Day 

					
					
						$510,000

					
					
						$520,000

				
	
					
						Executive Vice President,  Merchandising and Supply Chain 

					
					
						 

					
					
						 

				

		
			 
		

			
			
				 (1)
			

			
			
			Mr. Hope resigned effective June 30, 2013.

		
			 
		

		
			 
		

		

		

		 

		

			 

		

 

		The Named Executive Officers are also eligible to participate in the Company’s executive and regular benefit plans and programs, as described below. More detailed information regarding our compensation plans and agreements with the Named Executive Officers, as well as compensation paid or earned during fiscal 2013, will be included in the Company’s 2013 Proxy Statement.
		

		
			 
		

		
			Stock Options, Restricted Stock and Restricted Stock Units
		

		
			 
		

		
			The Named Executive Officers are eligible to receive options under Sysco’s stock option plans, including the 2007 Stock Incentive Plan, in such amounts and with such terms and conditions as determined by the Committee at the time of grant. The 2007 Stock Incentive Plan also allows for the issuance of restricted stock grants and restricted stock units. 
		

		
			 
		

		
			Management Incentive Plan
		

		
			 
		

		
			Each of the Named Executive Officers is eligible to receive an annual incentive bonus under the Sysco Corporation Management Incentive Plan (the “MIP”).
		

		
			 
		

		
			Deferred Compensation Election
		

		
			 
		

		
			Prior to December 31, 2012,  MIP participants, including certain of the Named Executive Officers, were able to defer up to 40% of their annual incentive bonus under the Executive Deferred Compensation Plan (“EDCP”). They were also able to elect to defer all or a portion of their salary under the EDCP. For deferrals of up to 20% of the annual incentive bonus, the EDCP provides for Sysco to credit the participant’s deferred compensation account in an amount equal to 15% of the amount deferred. The EDCP was frozen effective December 31, 2012, and participants were 100% vested in their company matching funds as of that date. No salary deferrals were allowed after the freeze date and fiscal year 2013 was the last year participants were allowed to make bonus deferrals.
		

		
			 
		

		
			Cash Performance Unit Plan
		

		
			 
		

		
			Each of the Named Executive Officers is eligible to participate in the Sysco Corporation 2008 Cash Performance Unit Plan.
		

		
			 
		

		
			Supplemental Executive Retirement Plan 
		

		
			 
		

		
			Each of the Named Executive Officers, other than Mr. Shurts, was also eligible to participate in a Supplemental Executive Retirement Plan (the “SERP”).  The SERP was frozen to new participants in 2011 and future benefit accruals under this plan were frozen as of June 29, 2013.  Participants were vested in their accounts as of the freeze date. Access to their funds will continue to be predicated on the benefit commencement provisions that existed prior to the freeze.  However, for those participants who retire in good standing, after June 29, 2013, and are otherwise not eligible for payment under the prior conditions, payment will be made at age 65.
		

		
			 
		

		

		

		 

		

			 

		

 

		Management Savings Plan (MSP)
		

		
			 
		

		
			Effective January 1, 2013, Sysco introduced a new MIP restoration plan,  the MSP, to replace the former SERP and MIP retirement plan programs.  The MSP allows eligible MIP participants, including the Named Executive Officers, to defer up to 50% of their salary (for calendar years 2013 and thereafter) and up to 100% of their eligible bonus for fiscal years 2014 and thereafter.  In addition, in conjunction with freezing of the SERP, eligible participants (who would otherwise have incurred a sizable loss of future benefits) are eligible for transition contributions of between 2.5% - 10% of their eligible pay for a period not to exceed 10 years or the date of their departure from the Company.  
		

		
			 
		

		
			 
		

		
			Other Benefits
		

		
			 
		

		
			The Named Executive Officers also participate in Sysco’s regular employee benefit programs, which include a 401(k) plan with Company match, group medical and dental coverage, group life insurance and other group benefit plans. They are also provided with additional life insurance benefits, as well as long-term disability coverage and certain perquisites and personal benefits. The Named Executive Officers are also participants in a defined benefit retirement program; however, future benefit accruals under this plan were frozen as of December 31, 2012.10.61 Summary of Compensation Arrangements with Non-Employee Directors (Exhibit to Form 10-K for Fiscal 2013)

		
			Exhibit 10.61
		

		
			 
		

		
			Summary of Current Compensation Arrangements with Non-Employee Directors and the Executive Chairman
		

		
			 (As of August 23, 2013)  
		

		
			 
		

		
			The following summarizes, as of August 23, 2013, the current cash compensation and benefits received by the Company’s non-employee directors. The following is a summary of existing arrangements, and does not provide any additional rights. 
		

		
			 
		

		
			Retainer Fees 
		

		
			 
		

		
			The Company pays each non-employee director a base retainer of $100,000 per year (the “Base Retainer”). Non-employee directors who serve as committee  chairpersons receive annual additional amounts as follows: 
		

		
			 
		

			
					
						Audit Committee Chair

					
					
						$25,000

				
	
					
						Compensation Committee Chair

					
					
						$20,000

				
	
					
						Corporate Governance and Nominating Committee Chair

					
					
						$20,000

				
	
					
						Finance Committee Chair

					
					
						$20,000

				
	
					
						Sustainability Committee Chair

					
					
						$15,000

				

		
			 
		

		
			In May 2012, the Board selected Jackie M. Ward as its Lead Director.  In addition to the compensation received by all non-employee directors, Ms. Ward receives an additional annual retainer of $40,000, paid quarterly, for her service as Lead Director.
		

		
			 
		

		
			Executive Chairman Salary
		

		
			 
		

		
			Manuel A. Fernandez, Sysco’s Executive Chairman beginning in April 2012, currently receives an annual salary of $900,000.  Because he is an employee of the Company, he does not receive any non-employee director retainer fees.       
		

		
			 
		

		
			Directors Deferred Compensation Plan
		

		
			 
		

		
			Non-employee directors may defer all or a portion of their annual retainer, including additional fees paid to committee chairpersons and any additional retainer fee paid to the non-executive Chairman of the Board and/or Lead Director, under the Directors Deferred Compensation Plan. With respect to amounts deferred, non-employee directors may choose from a variety of investment options, including Moody’s Average Corporate Bond Yield plus 1% for amounts deferred or matched prior to July 2, 2008 and Moody’s Average Corporate Bond Yield without the additional 1% for amounts deferred or matched on or after July 2, 2008. Such deferred amounts will be credited with investment gains or losses until the non-employee director’s retirement from the Board or until the occurrence of certain other events. 
		

		
			 
		

		
			Non-Employee Directors Stock Plan
		

		

		

		 

 

		 
		

		
			The 2009 Non-Employee Directors Stock Plan authorizes grants of stock options, restricted stock, restricted stock units and elected shares in lieu of all or a portion of the Base Retainer and any additional retainer fee paid to the non-executive Chairman of the Board and/or Lead Director for his or her service in such capacity and any fees paid to a committee chairman for his or her service in such capacity.
		

		
			 
		

		
			Restricted Stock.  Under the Plan, the Board is authorized to issue restricted stock and restricted stock units to non-employee directors on terms set forth in the Plan.
		

		
			 
		

		
			Elected Shares.  The Plan permits each non-employee director to elect to receive all or a portion of his or her annual retainer (including any additional retainer fee paid to the non-executive Chairman of the Board and/or Lead Director for his or her service in such capacity and any fees paid to a committee chairman for his or her service in such capacity) in Common Stock. The Company will provide a matching grant with respect to up to 50% of the Base Retainer which a non-employee director elects to receive in Common Stock (the “Match Eligible Shares”). The matching grant shall be equal to 50% of the Match Eligible Shares that a non-employee director receives. With respect to the remaining portion of the Base Retainer and any additional retainer fee paid to the non-executive Chairman of the Board and/or Lead Director for his or her service in such capacity and any fees paid to a committee chairman for his or her service in such capacity, a non-employee director may elect to receive Common Stock, but it is not eligible for the matching grant described in this paragraph.
		

		
			 
		

		
			The Board does not currently grant annual stock option or restricted stock unit awards under this Plan. 
		

		
			 
		

		
			2009 Board of Directors Stock Deferral Plan
		

		
			 
		

		
			A  non-employee director may elect to defer receipt of all or any portion of any shares of common stock issued under the Non-Employee Directors Stock Plan, whether such shares are to be issued as a grant of restricted stock, elected shares or matching grants, or upon the vesting of a restricted stock unit grant. Generally, the receipt of stock may be deferred until the earliest to occur of the death of the non-employee director, the date on which the non-employee director ceases to be a director of Sysco, or a change of control of Sysco.
		

		
			 
		

		
			Reimbursement for Expenses
		

		
			 
		

		
			All non-employee directors are entitled to receive reimbursements of expenses for all services as a director, including committee participation or special assignments. This includes reimbursement for non-commercial air travel in connection with Sysco business, subject to specified maximums, provided that amounts related to the purchase price of an aircraft or fractional interest in an aircraft are not reimbursable and any portion of the reimbursement that relates to insurance, maintenance and other non-incremental costs is limited to a maximum annual amount. 
		

		

		

		 

 

		 
		

		
			The Directors Deferred Compensation Plan, the 2009 Non-Employee Directors Stock Plan and the 2009 Board of Directors Stock Deferral Plan, have been filed as exhibits to the Company’s Exchange Act filings. Additional information regarding these plans is included in the Company’s 2012 Proxy Statement.

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