Morgan Stanley 2015 Annual Report Download - page 234

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
2015 Performance Year Deferred Compensation Awards.
In January 2016, the Company granted approximately $0.8 billion of stock-based awards and $1.0 billion of deferred cash-
based awards related to the 2015 performance year that contain a future service requirement. Absent estimated or actual
forfeitures or cancellations or accelerations, and any future return on referenced investments, the annual compensation cost
for these awards will be recognized as follows:
Annual Compensation Cost for 2015 Performance Year Awards.
2016 2017 Thereafter Total
(dollars in millions)
Stock-based awards ................................................ $453 $198 $162 $ 813
Deferred cash-based awards .......................................... 545 298 128 971
Total ........................................................ $998 $496 $290 $1,784
19. Employee Benefit Plans.
The Company sponsors various retirement plans for the majority of its U.S. and non-U.S. employees. The Company provides
certain other postretirement benefits, primarily health care and life insurance, to eligible U.S. employees.
Pension and Other Postretirement Plans.
Substantially all of the U.S. employees of the Company and its U.S. affiliates who were hired before July 1, 2007 are covered
by the U.S. pension plan, a non-contributory, defined benefit pension plan that is qualified under Section 401(a) of the
Internal Revenue Code (the “U.S. Qualified Plan”). The U.S. Qualified Plan has ceased future benefit accruals.
Unfunded supplementary plans (the “Supplemental Plans”) cover certain executives. Liabilities for benefits payable under
the Supplemental Plans are accrued by the Company and are funded when paid to the participant and beneficiaries. The
Morgan Stanley Supplemental Executive Retirement and Excess Plan (the “SEREP”), a non-contributory defined benefit
plan that is not qualified under Section 401(a) of the Internal Revenue Code, ceased future benefit accruals after
September 30, 2014. Any benefits earned by participants under the SEREP prior to October 1, 2014 will be payable in the
future based on the SEREP’s provisions. The amendment did not have a material impact on the consolidated financial
statements.
Certain of the Company’s non-U.S. subsidiaries also have defined benefit pension plans covering substantially all of their
employees.
The Company’s pension plans generally provide pension benefits that are based on each employee’s years of credited service
and on compensation levels specified in the plans.
The Company has an unfunded postretirement benefit plan that provides medical and life insurance for eligible U.S. retirees
and medical insurance for their dependents. The Morgan Stanley Medical Plan was amended to change the health care plans
offered after December 31, 2014 for retirees who are Medicare-eligible and age 65 or older. The amendment did not have a
material impact on the consolidated financial statements.
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