Summary
Dominion Energy, Inc. (D) filed an 8-K on January 29, 2009, detailing its 2009 executive compensation plans. The company's Compensation, Governance and Nominating Committee approved the 2009 Annual Incentive Plan and the 2009 Long-Term Incentive Program. These plans are designed to incentivize officers, including named executive officers, through performance-based cash awards and a combination of restricted stock and cash performance grants, respectively. The incentive structures are tied to the achievement of specific financial, operational, safety, and shareholder return metrics.
Key Highlights
- 1Approval of the 2009 Annual Incentive Plan for officers, offering performance-based cash awards tied to base salary percentages.
- 22009 Annual Incentive Plan funding is based on consolidated operating earnings goals (0%-200% of target funding).
- 3Specific performance metrics for annual incentives include financial, safety, operating, and stewardship goals, with 5% of payouts linked to safety.
- 4Introduction of the 2009 Long-Term Incentive Program, comprising restricted stock with a three-year cliff vesting and a cash-based performance grant.
- 5Long-term performance grant metrics include relative total shareholder return (50%), return on invested capital (40%), and book value per share (10%).
- 6The Compensation Committee exercised negative discretion to reduce 2007 performance grant payouts by 12% for named executive officers, aligning them with other officers.
- 7Both the annual and long-term incentive plans include provisions for clawbacks in cases of fraudulent misconduct leading to financial restatements or affecting business operations.