8-KLeadership ChangesExhibits & Filings

DOMINION ENERGY, INC 8-K Report, Executive Changes (Feb 2, 2022)

Filed February 2, 2022For Securities:D

Summary

Dominion Energy, Inc. (D) filed an 8-K on February 2, 2022, detailing its 2022 executive compensation plans. The Compensation and Talent Development Committee approved both the 2022 Annual Incentive Plan and the 2022 Long-Term Incentive Program. These plans outline performance-based cash awards for officers under the annual plan and a mix of restricted stock and performance grants for the long-term program. The annual incentive plan is funded based on consolidated financial operating earnings goals, with potential funding between 0% and 200% of target. Payouts are contingent on achieving these financial goals, as well as operational, safety, diversity, inclusion, and environmental objectives. The long-term incentive program, designed to align executive pay with shareholder value and strategic goals, consists of restricted stock (40%) with a three-year cliff vesting period and a performance grant (60%). The performance grant's payout is tied to total shareholder return (TSR) relative to peers, cumulative operating earnings per share, and non-carbon emitting generation capacity, with a three-year performance period ending December 31, 2024.

Key Highlights

  • 1Dominion Energy approved its 2022 Annual Incentive Plan, providing performance-based cash awards for officers.
  • 2The 2022 Annual Incentive Plan's funding is tied to consolidated financial operating earnings, with a range from 0% to 200% of target.
  • 3Payouts for the annual plan can be adjusted based on operating, safety, diversity, inclusion, and environmental goals.
  • 4The 2022 Long-Term Incentive Program combines restricted stock (40%) and performance grants (60%) for officers.
  • 5Restricted stock under the long-term program has a three-year cliff vesting period.
  • 6The performance grant payout is based on a three-year performance period (ending Dec 31, 2024) and measured against TSR relative to peers (50%), EPS (40%), and non-carbon emitting generation capacity (10%).

Frequently Asked Questions

Dominion Energy approved a 2022 Annual Incentive Plan, which offers performance-based cash awards to officers, and a 2022 Long-Term Incentive Program, which includes a mix of restricted stock and performance-based grants. Both plans are designed to incentivize achievement of financial and strategic objectives.

The annual plan is funded based on consolidated financial operating earnings goals, with the potential to fund between 0% and 200% of the target amount. The final payout is subject to achieving these financial goals, as well as operational and stewardship goals such as safety, diversity, inclusion, and environmental performance.

The performance grant payout is based on three key metrics over a three-year period ending December 31, 2024: total shareholder return (TSR) relative to a peer group (50% weighting), cumulative operating earnings per share (40% weighting), and the percentage of non-carbon emitting generation capacity (10% weighting). There's also a potential award based on the company's relative price-earnings ratio.

The restricted stock portion of the long-term incentive program has a three-year cliff vesting period. The performance grant payout will be determined after the three-year performance period concludes on December 31, 2024, with payments expected by March 15, 2025.