In January, we blogged a “Warning to Public Companies with Defined Benefit Pension Plans,” highlighting a warning from actuarial and consulting firms on a proxy reporting issue facing companies with a defined benefit plan covering NEOs. Now this follow-up, “Proxy Hysteria Arrives -- I Was Right,” describing the actual outcome in one situation. As readers know, public companies must report the increase in the actuarial present value of NEOs’ pension benefits in the Summary Compensation Table under “Change in pension value and nonqualified deferred compensation earnings ($)” and the Pension Benefits Table. Because two of the [many] actuarial assumptions used to determine actuarial liability changed for many companies from 2013 to 2014, the discount rate and the mortality assumption.
Expect similar disclosures from many other companies in the coming weeks.