Moog Proxy and Notice and Access Letter- FY2019 Filed 12 30 2019 - Flipbook - Page 22
OTHER BENEFITS AND PERQUISITES
The Company believes retirement plans are a key element in attracting and retaining employees at all levels of the organization.
The Company maintains a defined benefit retirement plan in the U.S., however U.S. employees hired after January 1, 2008 are
now covered under a defined contribution plan. The Company also maintains both defined benefit and defined contribution type
plans at various subsidiaries outside the United States. Each NEO participates in the U.S. defined benefit retirement plan and all
participate in either a defined benefit or defined contribution supplemental plan. The defined benefit retirement plan and the
supplemental plans are described in more detail along with officers’ other pension benefits on pages 33 to 35. The value of pension
benefits for each NEO can be found in the table on page 35.
The NEOs participate in the same health insurance programs available to all employees. In addition, our executive officers
have coverage under an enhanced medical insurance policy that generally covers all unpaid healthcare expenses deductible under
IRS guidelines. This supplemental coverage plan was established in accordance with industry practice for senior executives. We
believe that conforming in this way to industry standards aids in executive retention.
Vacation, Disability and Group Life Insurance
NEOs participate in the same vacation, disability and life insurance programs as all other Moog employees. Life insurance
coverage for employees is based upon a multiple of salary, with the multiple for the NEOs generally being two and a half times
NEOs and other members of executive management are provided termination benefit agreements that are triggered under
certain circumstances, including upon a termination of employment in connection with a change in control. Under these agreements,
executive officers receive salary continuance for up to three years based upon length of service; STI on a prorated basis in the year
of termination; outplacement services; and medical coverage, life and disability benefits and club dues for one year. These
agreements are designed to retain executives and provide continuity of management in the event of a change in control. The
Company believes that these severance and change in control benefits are required to attract and retain executive talent in a
marketplace where such benefits are commonly offered. Further information can be found under the heading “Potential Payments
Upon Termination or Change in Control” section on pages 36 to 38.
The Company reimburses fees for membership in certain private clubs so that the Company’s executives have these facilities
available for entertaining customers, conducting Company business and fulfilling community responsibilities.