Ingram Micro 2007 Annual Report Download - page 35

For U.S. executive officers, the Company offers participation in a 401(k) plan with Company-matching
contributions as the only qualified retirement program. In addition, Ingram Micro offers all US highly compensated
employees (“HCEs”), as defined annually by the Internal Revenue Service (“IRS”), an opportunity to participate on
a voluntary basis in our Supplemental Investment Savings Plan (“Supplemental Plan”), a non-qualified deferred
compensation arrangement. In general, the Supplemental Plan operates to restore 401(k) plan benefits, including
Company matching contributions that were reduced or limited by IRS regulations.
Mr. Murai is a Canadian citizen and elected not to participate in the Company-sponsored 401(k) plan or the
Supplemental Plan. As a result, the Company entered into a deferred compensation arrangement with Mr. Murai
that provides him the same opportunity to defer compensation and receive Company matching contributions as
other U.S. executive officers who participate in these programs.
Mr. Monié is a French citizen and continued to participate in the French social insurance programs which the
Company paid for through September 2007 and which is noted under Other Compensation in the Summary
Compensation Table. Effective with his promotion to President and Chief Operating Officer and his transfer from
Singapore to the United States, the Company ceased contributing to the French social insurance programs on his
behalf.
Mr. Maquet is also a French citizen and continues to participate in the French social insurance programs which
the Company paid for in 2007. In addition, prior to his relocation and assignment to the United States, he
participated in the Ingram Micro France SARL profit sharing program. As part of his expatriate assignment, the
Company agreed to pay him what he would have received under the Ingram Micro France SARL profit sharing
program had he remained an employee of Ingram Micro France SARL. The amount of the French social insurance
payments and the profit sharing program payments are noted under Other Compensation in the Summary
Compensation Table.
Relocation Assistance Arrangements. Because we are a global company, we recruit executives globally. We
also provide career development opportunities and promotions by moving our executives to locations throughout
the world. We have an International Expatriate Assignment Policy applicable to associates working for Ingram
Micro who are transferred from their home country of residence and placed on an international assignment for a
specified period of time and whom management has approved to be covered by this policy. We generally provide
assistance relating to such relocation, including travel costs, home leave for the associate and the associate’s family,
reimbursements for necessary work and residency permits, disposition of home country automobile, transportation,
and storage of household goods and personal effects, cost of living allowances, relocation and housing assistance,
reimbursements for customary and reasonable transaction expenses, dependent education costs, and tax preparation
services.
In addition, Ingram Micro’s International Assignment Tax Equalization Policy is intended to eliminate tax
inequities or benefits that normally result from accepting a temporary expatriate foreign assignment. Ingram Micro
associates covered under this policy will be provided tax equalization benefits. Accordingly, such associate will not
recognize any income tax-related financial losses or gains as a result of an international assignment. In order to
ensure that the associate pays no more or no less tax as a result of an international assignment, the associate will be
responsible for a “stay-at-home” tax liability, an estimate of the home country tax the associate would have paid had
he or she remained in the home country. To assist the associate in meeting the stay-at-home tax liability, an
estimated amount of tax is withheld from the associate’s pay each pay period (hypothetical tax). In general, if upon
final determination of the associate’s actual stay-at-home tax for a given tax year, the total actual stay-at-home tax
exceeds the hypothetical tax that was withheld from the associate’s pay for that tax year, the associate will reimburse
Ingram Micro for the difference. If the actual stay-at-home tax is less than the associate’s hypothetical tax withheld,
Ingram Micro will reimburse the associate for the difference.
Mr. Monié is a French citizen whom we relocated to Singapore upon his employment in 2003. In August 2007,
we promoted him to the position of President and Chief Operating Officer and relocated him from Singapore to our
corporate offices in the United States. Because Mr. Monié was relocating to the United States indefinitely, the
Committee decided to provide him with various one time payments that are included in the Summary Compensation
Table as Bonus and Other Compensation in order to localize his compensation package and consider him as a
U.S. associate (local national) for compensation purposes. As a result, in addition the normal relocation benefits
32