What are the key performance areas for AEP's 2006 executive incentive plan?

The key performance areas for the 2006 Senior Officer Incentive Plan (SOIP) are safety performance, operations measures (such as plant availability), results of regulatory proceedings, and strategic initiatives (like diversity and new generation asset development). Each of these areas is weighted at 25%.

How is the overall funding for AEP's incentive plans determined for 2006?

The overall funding level for AEP's incentive plans, including the SOIP, is primarily determined by whether the company's earnings per share (EPS) meets or exceeds the 2006 target set by the Board of Directors. The Human Resources Committee can also adjust this funding level, either up or down.

What were the reported bonus amounts for AEP's top executives for 2005?

For 2005, Michael G. Morris received a bonus award of $2,250,000. Other executive officers awarded bonuses for 2005 include Carl L. English ($575,000), Susan Tomasky ($575,000), Robert P. Powers ($500,000), Thomas M. Hagan ($464,183), and Holly K. Koeppel ($464,183).

AEP 8-K: Material Agreements

Summary

This 8-K filing from American Electric Power Company, Inc. (AEP) primarily details the approval of performance metrics for its 2006 Senior Officer Incentive Plan (SOIP) and reports on 2005 bonus awards granted to its executive officers. The SOIP performance metrics are equally weighted (25% each) across four key areas: safety, operations (e.g., plant availability), regulatory outcomes, and strategic initiatives. The overall funding for this and other incentive plans is tied to the company's earnings per share (EPS) performance against a board-approved target, with the Human Resources Committee retaining discretion to adjust the funding level.

Key Highlights

1AEP's Human Resources Committee approved the 2006 SOIP performance metrics on February 27, 2006.
2The 2006 SOIP metrics are equally weighted (25% each) across safety, operations, regulatory results, and strategic initiatives.
3Overall incentive plan funding is linked to AEP's 2006 EPS performance against a board-approved target.
4The HR Committee has the discretion to adjust the overall incentive plan funding level.
5Michael G. Morris was awarded a $2,250,000 bonus for 2005.
6Several other executive officers received 2005 bonus awards, including Carl L. English ($575,000), Susan Tomasky ($575,000), Robert P. Powers ($500,000), Thomas M. Hagan ($464,183), and Holly K. Koeppel ($464,183).

AMERICAN ELECTRIC POWER CO INC 8-K Report, Material Agreement (Mar 3, 2006)

Summary

Key Highlights

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