Exhibit 10.41
PRUDENTIAL FINANCIAL,
INC.
COMPENSATION PLAN
(Amended and Restated Effective
as of November 11, 2008)
ARTICLE 1
PURPOSE
The purpose of the “Prudential
Financial, Inc. Compensation Plan” (the “Plan”)
is to foster and promote the long-term financial success of
Prudential Financial, Inc. (the “Company”) and its
Affiliates and materially increase shareholder value by providing
market-sensitive programs ( e.g. , base salary and annual
incentive compensation) to Eligible Employees of the Company and
its Affiliates that attract and reward highly qualified employees;
align with critical business goals and objectives; link to the
performance results relevant to the business segment and the
Company; retain top performers; pay for results and differentiate
levels of performance; and foster contributions that promote
Company success.
Effective as of March 11, 2003
(the “Effective Date”), the Plan is hereby
adopted.
ARTICLE 2
DEFINITIONS
2.01 Definitions . Whenever used
herein, the following terms shall have the respective meanings set
forth below:
Administrative
Guidelines .
“Administrative Guidelines” means the guidelines and
information for exercising duties and responsibilities under this
Plan as approved by the Senior Vice President, as described in
Section 5.01.
Affiliate . “Affiliate” means any corporation
or partnership in which the Company owns, directly or indirectly,
more than 50% of the total combined voting power of all classes of
stock of such corporation or of the capital interest or profits
interest of such partnership, but excluding any such entity that is
excluded from participation in the Plan by the Senior Vice
President in his or her sole discretion. “Affiliate”
also means any corporation or partnership in which the Company
owns, directly or indirectly, 50% or less of the total combined
voting power of all classes of stock of such corporation or of the
capital interest or profits interest of such partnership, provided
that any such entity is included in the Plan by the Senior Vice
President in his or her sole discretion.
Annual Incentive Award
. “Annual Incentive
Award” shall have the meaning set forth in
Section 4.03(b)(2).
Base Pay . “Base Pay” shall have the meaning
set forth in Section4.03(b)(1).
Board . “Board” means the Board of
Directors of the Company.
Code . “Code” means the Internal Revenue
Code of 1986, as amended.
Committee . Generally, the term “Committee”
means the Compensation Committee of the Board or such other
committee of the Board as the Board shall designate from time to
time. For purposes of any Base Pay or Annual Incentive Award
decisions related to Covered Employees under this Plan or the
Omnibus Incentive Plan, the Committee shall consist of two or more
members of the Board, each of whom shall be a “Non Employee
Director” within the meaning of Rule 16b-3, as promulgated
under the Securities Exchange Act of 1934 (as amended), an
“outside director” within the meaning of section 162(m)
of the Code, and an “independent director” under
Section 303A of the New York Stock Exchange’s Listed
Company Manual, or any successors thereto.
Company . “Company” means Prudential
Financial, Inc., a New Jersey corporation, and any successor
thereto. Prior to December 18, 2001, “Company”
means The Prudential Insurance Company of America.
Covered Employee
. “Covered Employee”
means any Eligible Employee of the Company or its Affiliates who is
deemed to be a “covered employee” for purposes of Code
section 162(m).
Effective Date
. “Effective Date”
generally means March 11, 2003, or as designated by the Senior
Vice President for particular Eligible Employees or categories of
Eligible Employee.
Eligible Employee
. “Eligible Employee”
means any U.S.-based regular full-time and regular part-time (but
not temporary) employee of the Company or any Affiliate as
follows:
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(a)
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Home Office
Employees.
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(b)
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Field Service
Staff Employees.
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“Eligible Employee” in
no event, however, shall include any of the following:
(1) Prudential
Representatives.
(2) Prudential Field
Management-Prudential Insurance and Financial Services
Employees.
(3) Prudential Field
Management-Prudential Preferred Financial Services
Employees.
(4) Senior Life
Representatives.
(5) Special Agents, other than
Special Agents whose regular compensation is paid in foreign
currency.
(6) Employees who are classified by
Prudential as Canadian or International employees.
(7) Retired employees.
(8) Temporary employees and
Full-Time employees hired on a temporary basis, including any
employee who performs services for the Employer through a temporary
employment agency.
(9) Persons employed on a casual or
occasional basis.
(10) Persons retained on a monthly
fee or per diem basis.
(11) Persons working under the
direction of real estate management firms or other
contractors.
(12) Employees covered under a
collective bargaining agreement, unless the collective bargaining
agreement provides for coverage hereunder.
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(13) Any person (other than an
individual considered an employee under Code section 3121(d)(3)(B)
and specifically defined herein as an Eligible Employee) who
performs services for the Employer but is not treated by the
Employer at the time of the performance of services as an employee
for federal tax purposes (regardless of any subsequent
recharacterization), including, without limitation:
(A) Premiere Retired
Representatives, Agents Emeritus, or Retired
Representatives;
(B) Individuals who perform services
for the Employer through for which they are compensated through an
employee leasing company, temporary employment agency or other
third party agency such as, but not limited to, Spherion and
Adecco;
(C) Any former employee;
(D) Any individual who would
otherwise be considered an employee solely by being part of an
affiliated service group, leasing arrangement or other arrangement
under Code Sections 414(m), (n) or (o);
(E) An independent
contractor.
(14) Or investment
professionals.
Job Grade . “Job Grade” means the various
grades assigned to Eligible Employees under
Section 4.02.
Manager . “Manager” means the officer of the
Company or its Affiliate who is responsible for supervising,
directing and evaluating the work of an Eligible Employee. In the
case of Job Grades 1 through 4 who are at least the rank of Senior
Vice President (including, but not limited to, Covered Employees),
the Committee shall be considered the Manager.
Omnibus Incentive Plan
. “Omnibus Incentive
Plan” means the Prudential Financial, Inc. Omnibus Incentive
Plan, as adopted by the Board on March 11, 2003 (and as
amended in the future).
Participant
. “Participant” shall
have the meaning set forth in ARTICLE 3 of the Plan.
Plan Year . “Plan Year” means a period that
ends on the last Friday in each December that is also a payday, and
begins on the following Monday.
Senior Vice President or
SVP . “Senior Vice
President” or “SVP” means the most senior Vice
President responsible for corporate Human Resources (or the
successor to his or her duties relating to corporate Human
Resources) or his or her delegate if so provided pursuant to his or
her written delegation or written direction.
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2.02 Gender and Number.
Except when otherwise indicated by
the context, words in the masculine gender used in the Plan shall
include the feminine gender, the singular shall include the plural,
and the plural shall include the singular.
ARTICLE 3
ELIGIBILITY AND
PARTICIPATION
Unless otherwise specifically
designated by the Senior Vice President or the Committee, all
Eligible Employees of the Company and any Affiliate are
Participants.
ARTICLE 4
JOB GRADES; POWERS OF THE SENIOR
VICE PRESIDENT
4.01 Power to Determine Base Pay, Changes in
Base Pay and Annual Incentive Awards. Subject to the terms
of the Plan (including, but not limited to Sections 5.01 and 5.02)
and Article IX of the Omnibus Incentive Plan (with respect to
Annual Incentive Awards for Eligible Employees who are Covered
Employees), the Senior Vice President shall have the authority to
determine, in his or her sole discretion, each Eligible
Employee’s Base Pay (including any changes in such Base Pay)
as provided in Section 4.03(b)(1) of the Plan, and each
Eligible Employee’s Annual Incentive Awards as provided in
Section 4.03(b)(2) of the Plan.
4.02 Job Grades; Pay Rates; Administrative
Guidelines. The Senior Vice President shall have the
authority to develop Job Grades and Administrative Guidelines (as
further referenced in Section 5.01) for the application of the
principles of this Plan and the Senior Vice President’s
authority.
(a) Initially, there will be 18 Job
Grades, with the Chief Executive Officer of the Company designated
as Job Grade 1. Each Participant will be assigned a Job Grade, as
described in Sections 4.02 and 4.03.
(b) Managers and other appropriate
officers of the Company or any Affiliate may make recommendations
as to or, if authorized by the Senior Vice President, set the Base
Pay (including any changes in Base Pay) and the Annual Incentive
Award of any Eligible Employee. The Senior Vice President may
accept or reject any recommendation or setting of Base Pay or an
Annual Incentive Award in his or her sole discretion. The Senior
Vice President, in his or her sole discretion, shall determine the
terms and conditions of each change in Base Pay and each Annual
Incentive Award at the time of grant. The Senior Vice President may
establish different