At El Paso, our performance measurement and total compensation programs ensure that every employee has access to a competitive package of pay and benefits, the opportunity to enhance their earnings power through performance, and a chance to save money for their future. Transparency and accountability help to ensure that every team member is fully informed about their current and potential compensation opportunities.
Retirement Savings Plan
Helping employees meet their goals for future financial security is important to us. All El Paso employees have access to a variety of retirement programs, including a 401(k) plan and a cash balance plan, on their first day of employment. El Paso’s 401(k) plan offers 17 investment fund options. The company matches $0.75 for every $1 of employee contributions, up to 6 percent of eligible pay. Employees are also eligible for potential additional company matching contributions based on the company’s overall performance and approval by the Board of Directors. Employees are 100 percent vested in the retirement savings plan upon their first contribution, and they can contribute up to 50 percent of their eligible pay, on a before-tax, after-tax, and/or Roth basis, subject to Internal Revenue Service limitations.
Cash Balance Plan
Beginning on their first day of employment, Team El Paso members can participate in El Paso’s cash balance plan (CBP), the company’s pension plan. With the CBP, an account is established that increases in value over time. The account is credited with pay credits that are a variable percentage of eligible pay, based on an employee’s age and years of eligible service. Contributions range from 4 to 7 percent of eligible pay. Employees can also receive interest credits each quarter based on a relatively stable, yet inflation-sensitive, index. Employees are vested in the CBP after three years of eligible service with the company. Payment options include monthly annuities or a lump sum.
Stock Ownership
El Paso’s long-term incentive program is designed to align the interests of the management team with the interests of the shareholders. Currently, employees at the manager level and above — as well as other designated groups — are eligible to receive long-term incentive awards, which are paid in the form of stock options and restricted stock. This policy strengthens leadership’s financial interest in the success of El Paso by awarding an equity stake in the company. In addition, El Paso offers an employee stock purchase plan. Most domestic or expatriate full-time employees of El Paso or participating subsidiaries are eligible to enroll. Participants receive a 5 percent discount on stock purchased through the plan.
Transportation Subsidies
Workforce mobility and flexibility are an important part of the success of El Paso’s day-to-day business. Because our main campus is located in downtown Houston and our workforce is widely dispersed throughout the greater metropolitan area, mass transit solutions are critical to our operations. And because we’re committed to being a leader in corporate responsibility, we actively support commuter solutions and flexible work schedules that will have a positive impact on air quality and traffic congestion.
