What is the primary purpose of the 2006 Long-Term Incentive Plan?

The primary purpose of the 2006 Long-Term Incentive Plan is to provide equity-based compensation to key employees and non-employee directors in the form of stock options, stock appreciation rights, restricted shares, performance shares, and other awards. This is intended to incentivize performance and align the interests of these individuals with those of the company's shareholders.

What are the key components of Dr. Ruth G. Shaw's severance and consulting package?

Dr. Shaw's package upon retirement includes a lump sum payment equivalent to two times her annual base salary and target bonus, a lump sum for two years of medical, dental, and life insurance premiums, lump sum contributions for two additional years of retirement plan accrual, continued vesting of certain equity awards for two years, and a pro-rated bonus for 2007. She will also receive $25,000 per month for consulting services for three years starting May 2008.

How many shares are authorized for issuance under the new incentive plan?

The 2006 Long-Term Incentive Plan reserves a total of 60,000,000 shares of Duke Energy Corporation's common stock for issuance.

What are the compensation details for Mr. Fred J. Fowler?

Following the separation of the gas business, Mr. Fowler's compensation will include an annual base salary of $950,000, a target short-term incentive opportunity of 90% of his base salary, and a long-term incentive opportunity of 220% of his base salary.

Duke Energy CORP 8-K: Material Agreements

Summary

This 8-K filing from Duke Energy Corporation (DUK), filed on October 27, 2006, reports on key corporate actions approved by its shareholders and Compensation Committee. The most significant event is the shareholder approval of the 2006 Long-Term Incentive Plan, which reserves 60 million shares of common stock for equity-based compensation to employees and directors. This plan is designed to incentivize key personnel and align their interests with shareholders. Additionally, the filing details compensation packages for key executives in light of an upcoming business separation. This includes the compensation for Mr. Fred J. Fowler, slated to lead the spun-off gas business, and severance and consulting arrangements for Dr. Ruth G. Shaw upon her retirement. These executive compensation decisions reflect strategic planning for organizational changes and executive retention.

Key Highlights

1Shareholders approved the Duke Energy Corporation 2006 Long-Term Incentive Plan.
2The 2006 Plan authorizes the grant of various equity-based compensation awards.
360,000,000 shares of common stock are reserved for issuance under the 2006 Plan.
4Compensation for Mr. Fred J. Fowler, incoming President & CEO of the gas business, was established.
5Dr. Ruth G. Shaw's severance and consulting agreement upon her retirement (effective April 30, 2007) was approved.
6Dr. Shaw's severance package includes significant benefits such as a lump sum payment, continued insurance premiums, retirement plan contributions, and equity vesting.

Duke Energy CORP 8-K Report, Material Agreement (Oct 27, 2006)

Summary

Key Highlights

Frequently Asked Questions