Realty Income Corporation (O, Financial), a prominent player in the real estate investment trust sector, has announced the approval of a new Deferred Compensation Plan, set to take effect on December 1, 2024. This strategic initiative is designed to provide eligible executives and non-employee board members with the opportunity to defer taxable income, thereby optimizing their financial planning and retirement savings.
The Deferred Compensation Plan allows participants, including the company's named executive officers and non-employee directors, to defer up to 75% of their base compensation and up to 100% of bonuses, commissions, director retainers, equity awards, and other forms of compensation. Deferred amounts are credited to individual accounts and are notionally invested in a selection of investments offered by the plan administrator. Participants' accounts will reflect the gains or losses from these investments.
Importantly, the plan is structured as "unfunded," meaning that Realty Income Corporation does not set aside specific assets in connection with the plan. Upon reaching the specified distribution date, which could be a predetermined date or the participant's separation from service, the accumulated amount in the participant's account will be disbursed either as a single lump sum or in equal annual installments over a period of up to five years for specified dates, or up to ten years following a separation from service, depending on the participant's initial election.
This move underscores Realty Income Corporation's commitment to providing its leadership with flexible financial planning tools, aligning with broader industry trends towards enhancing executive compensation packages. For more detailed information on the Deferred Compensation Plan, interested parties are encouraged to review the full plan documentation.
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