Summary
This 8-K filing from American Electric Power Company, Inc. (AEP) on December 21, 2004, details changes approved by the Board of Directors concerning compensation for its non-employee directors. Effective January 1, 2005, the annual stock unit awards to non-employee directors will increase from $60,000 to $80,000. Additionally, the Board approved a daily fee for special assignments undertaken by directors, including a per diem rate for specific tasks like Nuclear Regulatory Commission meetings or participation in ad hoc subcommittees. The filing also outlines an amendment to the Deferred Compensation and Stock Plan for Non-Employee Directors. This amendment allows directors to defer up to 100 percent of their annual Board cash retainer. These deferred amounts can be tracked against various investment fund options, including an AEP stock fund, providing directors with greater flexibility in managing their compensation and aligning their interests with shareholders.
Key Highlights
- 1Increase in annual AEP stock unit awards for non-employee directors from $60,000 to $80,000, effective January 1, 2005.
- 2Approval of per diem fees for special assignments undertaken by directors, with specific rates for the chairman and other members of a subcommittee that drafted an environmental report.
- 3Establishment of a $1,200 per day fee for future special assignments, such as attending Nuclear Regulatory Commission meetings.
- 4Amendment to the Deferred Compensation and Stock Plan for Non-Employee Directors to allow deferral of up to 100% of annual Board cash retainer.
- 5Deferred compensation can be invested in funds tracked with reference to options available in the AEP System Incentive Compensation Deferral Plan, including an AEP stock fund.
- 6These changes are intended to enhance director compensation and further align director interests with those of AEP shareholders through stock ownership and investment deferral options.