Summary
Dominion Energy, Inc. (D) filed an 8-K on January 20, 2011, to announce the approval of its 2011 Annual Incentive Plan and 2011 Long-Term Incentive Program. These plans outline performance-based compensation for the company's officers, including named executive officers, designed to align executive pay with company performance and shareholder value. The Annual Incentive Plan offers cash awards based on a percentage of base salary, with payouts tied to consolidated operating earnings goals and specific business unit financial, safety, operating, and stewardship targets. The Long-Term Incentive Program consists of restricted stock grants and cash-based performance grants, with vesting and payouts contingent on relative total shareholder return and return on invested capital, over a three-year period. Both plans include provisions for clawbacks in cases of misconduct leading to financial restatements or affecting company operations, reflecting a commitment to accountability.
Key Highlights
- 1Approval of the 2011 Annual Incentive Plan for officers, featuring performance-based cash awards.
- 22011 Annual Incentive Plan targets range from 85% to 125% of base salary for named executive officers, depending on their role.
- 3Funding for the 2011 Annual Incentive Plan is based on consolidated operating earnings goals, with potential payouts from 0% to 200% of target.
- 4Specific performance metrics for the 2011 Annual Incentive Plan include business unit financial, safety, operating, and stewardship goals.
- 5Approval of the 2011 Long-Term Incentive Program, comprised of restricted stock grants and cash-based performance grants.
- 6The 2011 Long-Term Incentive Program's performance grant payout is based 50% on relative total shareholder return and 50% on return on invested capital.
- 7Both incentive plans include provisions for clawing back payouts in cases of fraud or misconduct leading to financial restatements.