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.