8-KLeadership ChangesExhibits & Filings

DOMINION ENERGY, INC 8-K Report, Executive Changes (Jan 27, 2021)

Filed January 27, 2021For Securities:D

Summary

Dominion Energy, Inc. (D) filed an 8-K on January 26, 2021, detailing compensation plans for its officers for the upcoming year. The Compensation, Governance and Nominating Committee approved the 2021 Annual Incentive Plan and the 2021 Long-Term Incentive Program. The annual plan offers performance-based cash awards tied to consolidated financial operating earnings, with potential funding from 0% to 200% of target, and payout contingent on financial, operational, safety, diversity, and environmental goals. The long-term incentive program comprises both restricted stock and a performance grant. The restricted stock vests after a three-year cliff period. The performance grant, with a three-year performance period ending December 31, 2023, is based on relative Total Shareholder Return (TSR) and Return on Invested Capital (ROIC), each weighted at 50%. An additional component of the performance grant can be earned based on the company's price-earnings ratio performance, irrespective of relative TSR. These plans are designed to align executive compensation with company performance and shareholder value creation.

Key Highlights

  • 1Dominion Energy's Compensation Committee approved the 2021 Annual Incentive Plan and 2021 Long-Term Incentive Program.
  • 2The 2021 Annual Incentive Plan provides performance-based cash awards for officers, with target percentages of base salary varying by position (CEO at 120%, Executive Chairman at 100%, CFO and COO at 90%).
  • 3Annual plan funding is based on consolidated financial operating earnings goals, ranging from 0% to 200% of target.
  • 4Payouts for the annual plan are subject to achieving financial, operating, safety, diversity, and environmental goals.
  • 5The 2021 Long-Term Incentive Program includes a restricted stock grant with a three-year cliff vesting period.
  • 6The performance grant portion of the long-term incentive program is based on 50% relative Total Shareholder Return (TSR) and 50% Return on Invested Capital (ROIC).
  • 7An additional performance incentive can be earned based on Dominion Energy's price-earnings ratio performance.

Frequently Asked Questions

Dominion Energy's 2021 executive compensation includes an Annual Incentive Plan, which provides performance-based cash awards, and a Long-Term Incentive Program, consisting of restricted stock grants and performance grants tied to TSR and ROIC.

The 2021 Annual Incentive Plan is funded based on the achievement of consolidated financial operating earnings goals. The funding can range from 0% to 200% of the targeted amount.

The performance grant for the 2021 Long-Term Incentive Program will be based on two key metrics: Total Shareholder Return (TSR) relative to a peer group (weighted 50%) and Return on Invested Capital (ROIC) (weighted 50%). There is also an opportunity to earn an additional award based on the company's price-earnings ratio.

The performance grant has a performance period ending on December 31, 2023, with payments expected to be made by March 15, 2024.