Summary
This 8-K filing from American Electric Power Co. Inc. (AEP) on January 24, 2006, details the certification of performance scores for executive officers under the Amended and Restated AEP Long Term Incentive Plan for the 2003-2005 performance period. The performance was measured against the S&P Electric Utility Index, and AEP's total shareholder return placed it at the 35th percentile of its peers. Consequently, executives earned 49% of their targeted performance share units, including accrued dividends. This information is significant for investors as it provides insight into executive compensation tied to performance and the company's relative performance against industry benchmarks. While executives did not achieve full targets, earning nearly half of the performance share units demonstrates a degree of success, albeit below the upper range of potential awards. The specific amounts earned by named executives are disclosed, offering transparency into the distribution of these incentive awards.
Key Highlights
- 1Certification of performance score for 2003-2005 under AEP's Long Term Incentive Plan.
- 2Performance measured by AEP's total shareholder return relative to the S&P Electric Utility Index.
- 3AEP's total shareholder return for the period was at the 35th percentile of S&P peer utilities.
- 4Executives earned 49% of their performance share targets for the 2003-2005 period.
- 5Earned performance share units include accrued dividends.
- 6Specific performance share units earned by identified executive officers (Susan Tomasky, Thomas M. Hagan, Holly K. Koeppel, Robert P. Powers) are disclosed.