What is the primary purpose of the 2020 Annual Incentive Plan?

The 2020 Annual Incentive Plan is designed to provide officers, including named executive officers, with performance-based cash awards. The plan aims to incentivize the achievement of consolidated financial operating earnings goals, as well as operational, safety, diversity, inclusion, and environmental stewardship objectives.

How is the 2020 Annual Incentive Plan funded and what determines the payout?

The plan is funded based on the achievement of consolidated financial operating earnings goals, with the potential for funding to range from 0% to 200% of the target amount. The actual payout to officers is subject to the achievement of these financial goals, along with specific operating and stewardship goals.

What performance metrics will be used to determine payouts for the 2020 Long-Term Incentive Program's performance grant?

The payout for the performance grant will be based on two primary metrics: total shareholder return (TSR) relative to a peer group (weighted at 50%) and return on invested capital (weighted at 50%). There's also an opportunity to earn awards based on Dominion Energy's absolute TSR and its price-earnings ratio, regardless of relative TSR performance.

D 8-K: Leadership Changes

Q: What are the components of Dominion Energy's 2020 Long-Term Incentive Program?

The 2020 Long-Term Incentive Program consists of two main components: a restricted stock grant with a three-year cliff vesting period and a cash-based performance grant. The target value of the performance grant is equivalent to the grant date value of the restricted stock portion.

Summary

Dominion Energy, Inc. (D) filed an 8-K on January 28, 2020, detailing the approval of its 2020 Annual Incentive Plan and the 2020 Long-Term Incentive Program by its Compensation, Governance and Nominating Committee. These plans outline the performance-based compensation structures for the company's officers, including named executive officers, for the upcoming year and the subsequent three-year period. The 2020 Annual Incentive Plan is a cash-based award tied to consolidated financial operating earnings goals, with potential funding between 0% and 200% of target. Payouts will further depend on achieving consolidated financial goals, as well as operating, safety, diversity, inclusion, and environmental stewardship objectives. The 2020 Long-Term Incentive Program features a combination of restricted stock with a three-year cliff vesting period and a cash-based performance grant. The performance grant's payout is contingent on relative total shareholder return (TSR) compared to peers and return on invested capital, with opportunities for additional earnings based on absolute TSR and price-earnings ratio performance over a period ending December 31, 2022.

Key Highlights

1Dominion Energy approved its 2020 Annual Incentive Plan, offering performance-based cash awards to officers.
2The 2020 Annual Incentive Plan is funded based on consolidated financial operating earnings goals, with a funding range of 0% to 200% of target.
3Payouts for the annual incentive are also contingent on achieving operational, safety, diversity, inclusion, and environmental stewardship goals.
4The company also approved the 2020 Long-Term Incentive Program for officers.
5The long-term incentive program includes a restricted stock grant with a three-year cliff vesting period.
6The long-term incentive program also includes a cash-based performance grant linked to relative Total Shareholder Return (TSR) and Return on Invested Capital.
7Performance metrics for the long-term incentive grant include peer TSR comparison (50% weighting) and Return on Invested Capital (50% weighting), with potential additional payouts based on absolute TSR and P/E ratio.

DOMINION ENERGY, INC 8-K Report, Executive Changes (Jan 29, 2020)

Summary

Key Highlights

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