Our leaders determine the success of our employees, in addition to our success as a business. In recognition of accepting these important responsibilities, Microsoft offers the Deferred Compensation Plan (DCP) exclusively for Microsoft US leaders level 67 and up.
Participants can elect to have a portion of their compensation (base pay and bonus) withheld by the company on a tax-deferred basis and credited to a bookkeeping account under the DCP. The deferred income is deemed to be invested in a range of available investment options and then distributed (including earnings/losses) to participants at some point in the future (e.g., when a participant may anticipate being in a lower tax bracket). DCP accounts are unsecured obligations of Microsoft. Any Microsoft assets used to meet these obligations are subject to the claims of Microsoft’s general creditors.
The Microsoft DCP is a non-qualified supplemental savings plan for U.S. employees at stock level 67 and above only. The Department of Labor generally requires that participation in a “top hat” plan (such as the DCP) be limited to a “select group of management or highly compensated employees.” To maintain compliance with these rules, our DCP-eligible population must be limited to U.S. employees who are at stock level 67 and above, without exception.
Important note: Even though participation in the DCP is restricted, the Microsoft 401(k) Plan is available to all U.S. benefits eligible employees, regardless of stock level.
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