Bank of the West 2014 Annual Report Download - page 50

The following table summarizes the changes in AOCI balances, net of tax:
(dollars in thousands)
Pension
and Other
Benefits
Securities
Available
for Sale
Cash Flow
Derivative Hedges
Total
AOCI
Balance as of January 1, 2013: $(89,881) $ 131,686 $ 10,328 $ 52,133
OCI before reclassifications 56,420 (218,165) (5,467) (167,212)
Amounts reclassified from AOCI 14,142 (39,610) (7,887) (33,355)
Balance as of December 31, 2013: (19,319) (126,089) (3,026) (148,434)
OCI before reclassifications (61,124) 100,981 22,040 61,897
Amounts reclassified from AOCI 2,967 (261) (16,822) (14,116)
Balance as of December 31, 2014 $(77,476) $ (25,369) $ 2,192 $(100,653)
18. Employee Pension and Other Postretirement Benefits
The Bank maintains both qualified and nonqualified defined benefit plans. The Bank’s other retirement plans
consist of nonqualified, supplemental retirement plans and a qualified defined contribution plan. The Bank recognizes
the overfunded and unfunded status of its pension plans as an asset and liability in the consolidated balance sheets.
Defined Contribution Plans:
401(k) match plan
The Bank matches 100% of employee contributions up to 6% of pay to the BancWest Corporation 401(k) Savings
Plan, a defined contribution plan. The plan covers all employees who satisfy eligibility requirements. Matching
employer contributions to the 401(k) plan for the years ended December 31, 2014 and 2013 were $29.9 million and
$28.4 million, respectively.
Incentive plan for key executives and officers’ incentive plan
The Bank has two incentive plans under which awards of cash are made to certain employees. One plan is for key
executives; the Incentive Plan for Key Executives (“IPKE”), and the other plan is for employees below the level of key
executives; the Officers’ Incentive Plan (“OIP”). The IPKE and OIP limit the aggregate and individual value of the
awards that could be issued in any one fiscal year. Both plans have the same limits on individual awards. Salary and
employee benefits expense includes IPKE and OIP expense of $56.9 million and $40.4 million for the years ended
December 31, 2014 and 2013, respectively.
Long-term incentive plans
The Bank has a Performance Share Plan (“PSP”) which was designed to reward certain employees for their
performance and BancWest’s performance over a multi-year performance cycle. Salary and employee benefit expense
for the Bank includes PSP expense of $13.9 million and $19.2 million for the years ended December 31, 2014 and 2013,
respectively.
The Bank also has a Long-Term Incentive Plan (“LTIP”) which rewards selected key executives for the Bank’s
performance assessed over a three year performance cycle on a relative and absolute basis. Salary and employee benefits
expense for the Bank includes LTIP expense of $9.0 million and $9.2 million for the years ended December 31, 2014
and 2013, respectively.
Additionally, the Bank participates in a Global Stock Incentive Plan (“GSIP”), formerly known as the BNPP Stock
Option Plan, in which certain members of the Bank’s senior management team receive stock option awards from BNPP
for shares of BNPP stock. See Note 20 for additional information.
In 2013, the BancWest Corporation Global Sustainability and Incentive Scheme (“GSIS”) was created to reward,
retain and motivate certain employees and to fairly compensate them by aligning their interest with the operational
performance of the BNP Paribas Group, including performance on Corporate Social Responsibility (“CSR”). The GSIS
plan was created to replace the GSIP on a go-forward basis. See Note 20 for additional information.
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