Question
In: Finance
Steven is a CEO who had a non-qualified deferred compensation plan with Pimco Co. which of...
Steven is a CEO who had a non-qualified deferred compensation plan with Pimco Co. which of the following is true?
Select one:
a. Pimco cannot discriminate in favor of Steven over rank and file employees.
b. If Pimco doesn't have the funds to pay Steven, Steven will become an unsecured creditor of Pimco.
c. Pimco is required to invest Steven's salary in investments specified by Steven.
d. Pimco is required to annually fund the deferred compensation requirement.
Solutions
Expert Solution
Solution:
Steven is a CEO who had a non-qualified deferred compensation plan with Pimco Co. which of the following is true?
a. Pimco cannot discriminate in favor of Steven over rank and file employees (Incorrect).
(Reason : Deferred Compansation Plan has nothing to do with the rank and file employees)
b. If Pimco doesn't have funds to pay Steven, Steven will become an unsecured creditor of Pimco. (Incorrect).
(Reason : Deferred Compansation Plan has nothing to do with unsecured creditor)
c. Pimco is required to invest Steven's salary in investments specified by Steven. (Incorrect).
(Reason : Deferred Compansation Plan does not mandate to investment as specified by employees)
d. Pimco is required to annually fund the deferred compensation requirement. (Correct).
(Reason : Deferred Compansation Plan requires the employer to annually fund the deferred compansation requirements)
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