Summary
Dominion Energy, Inc. (D) filed an 8-K on January 21, 2010, detailing its 2010 executive compensation plans. The company's Compensation, Governance and Nominating Committee approved both the 2010 Annual Incentive Plan and the 2010 Long-Term Incentive Program. These plans are designed to incentivize officers, including named executive officers, through performance-based cash awards and equity grants tied to specific financial, operational, and safety goals. The Annual Incentive Plan offers cash awards based on a percentage of base salary, with payouts determined by consolidated operating earnings goals, ranging from 0% to 200% of target funding. Individual and business unit performance metrics, including safety and operating goals, also influence the final payout, with the committee retaining discretion to adjust awards. Similarly, the Long-Term Incentive Program consists of restricted stock and a cash performance grant, both subject to a three-year vesting period. Payouts for the long-term component are based on relative total shareholder return and return on invested capital, with clawback provisions for misconduct included in both plans.
Key Highlights
- 1Approval of the 2010 Annual Incentive Plan, offering performance-based cash awards to officers.
- 2CEO's target annual incentive set at 125% of base salary, with other executive roles having lower target percentages.
- 3Annual incentive payouts are tied to consolidated operating earnings goals, with potential funding ranging from 0% to 200% of target.
- 4A portion of annual incentive payouts is contingent on meeting specific financial, safety, and operating goals at the business unit or individual level.
- 5Establishment of the 2010 Long-Term Incentive Program, comprising restricted stock and a cash performance grant.
- 6Long-term incentive payout is based on 50% total shareholder return relative to peers and 50% return on invested capital.
- 7Both annual and long-term incentive plans include provisions for the Compensation Committee to claw back awards in cases of fraudulent misconduct or financial restatements.