Agenda - Council - 11/13/2012 - Laserfiche WebLink

Home

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 2011 and 2010 were $23.0 million and $21.1 million, respectively. Incentive Plan for Key Executives and Officer's 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 Officer's 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 $37.9 million and $29.7 million for 2011 and 2010, respectively. Long -Term Incentive Plans In 2006, BancWest created an incentive plan, the Phantom Stock Plan, which was designed to reward certain employees for their performance and BancWest's performance over a multi -year performance cycle. The Phantom Stock Plan's final cycle payout of $4.5 million occurred during 2011. For the years ended December 31, 2011 and 2010, related salary and employee benefits expense for the Bank was $0.7 million and $1.0 million, respectively. In 2008, the Bank created a Performance Share Plan to replace the Phantom Stock Plan on a go -forward basis with employee benefit expense for the Bank at $12.1 million and $3.1 million for 2011 and 2010, respectively. In 2008, the Bank created a new Long Term Incentive Plan ("LTIP") to replace the BancWest LTIP on a go -forward basis. The plan rewards selected key executives for the Bank of the West 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 $13.8 million and $4.7 million for 2011 and 2010, respectively. 20. Income Taxes For the years indicated, the expense (benefit) provision for income taxes was comprised of the following: (dollars in thousands) 2011 2010 Current: Federal $212,592 $ 76,178 States and other 63,404 32,321 Total current 275,996 108,499 Deferred: Federal (16,305) (23,501) States and other (7,755) 4,602 Total deferred (24,060) (18,899) Total expense for income taxes $251,936 $ 89,600 -54- 2011 Bank of the West Annual Report