How did Hurricanes Katrina and Rita affect Dominion's executive compensation for 2005?

The Organization, Compensation and Nominating Committee exercised discretion to exclude the financial impacts of Hurricanes Katrina and Rita from the consolidated earnings targets for the 2005 Annual Incentive Plan. Despite these impacts affecting operations, the committee approved full bonus payouts for named executive officers, consistent with previously disclosed targets.

What financial information was released with this 8-K filing?

The filing announced preliminary unaudited earnings for the three and twelve months ended December 31, 2005. A press release and related preliminary earnings tables detailing these results were furnished as exhibits to the 8-K.

What is the significance of the Committee exercising discretion in the incentive plan?

The Committee's use of discretion allowed them to adjust the assessment of performance against goals by excluding the extraordinary impacts of Hurricanes Katrina and Rita. This enabled them to approve full bonus payouts for named executive officers, suggesting a desire to reward performance and provide compensation stability despite unforeseen and significant external events.

Where can I find more detailed financial results for Dominion in late 2005?

More detailed financial results are expected to be found in the press release and preliminary earnings tables that were furnished as Exhibit 99 to this Form 8-K filing. Investors should refer to these accompanying documents for specific figures.

D 8-K: Earnings & Results & Material Agreements

Summary

Dominion Resources, Inc. (D) filed an 8-K report on January 26, 2006, detailing key executive compensation decisions and releasing preliminary unaudited earnings for the year and fourth quarter ended December 31, 2005. The Organization, Compensation and Nominating Committee approved funding for the 2005 Annual Incentive Plan, notably exercising discretion to exclude the financial impacts of Hurricanes Katrina and Rita when assessing performance against funding goals. Furthermore, the committee used its discretion in bonus payout scoring, ultimately approving full payouts for named executive officers, aligning with previously disclosed targets. This decision reflects an effort to mitigate the extraordinary effects of the hurricanes on reported results while still recognizing executive performance against established objectives. The accompanying press release, furnished as an exhibit, provided preliminary earnings figures. Investors should note that the company's reported results for the period were significantly influenced by the disruptive events of Hurricanes Katrina and Rita. The committee's actions suggest a strategic approach to executive compensation, aiming to provide stability and reward performance despite external, unforeseen circumstances. The full earnings report and further details on the financial impact of the hurricanes are expected to be found in the referenced press release and preliminary tables.

Key Highlights

1The Compensation Committee approved the 2005 Annual Incentive Plan funding, using discretion to exclude hurricane impacts from consolidated earnings targets.
2Executive bonuses under the 2005 plan were approved for full payout to named executive officers, despite hurricane-related operational impacts.
3The company's preliminary unaudited earnings for the three and twelve months ended December 31, 2005, were announced on January 26, 2006.
4The filing includes a press release and preliminary earnings tables as exhibits, providing further detail on financial results.
5The Committee's decisions indicate a proactive management of executive compensation in response to significant external events.
6The report pertains to Dominion Resources, Inc., the parent company, with the ticker symbol D.

DOMINION ENERGY, INC 8-K Report, Material Agreement (Jan 26, 2006)

Summary

Key Highlights

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