Summary
This 8-K filing from Duke Energy Corporation (DUK), filed on November 27, 2006, primarily concerns executive compensation for 2007 and a temporary suspension of trading in employee benefit plans related to an upcoming corporate event. The company's Compensation Committee has set performance goals for executive officers' 2007 short-term incentives (STI), which will be 80% weighted on financial measures, specifically ongoing earnings per share (EPS), with a target of $1.15 per share for Duke Energy. For Spectra Energy Corp, the expected STI target EPS is $1.40 per share. These targets are non-GAAP measures excluding special items. Furthermore, the filing details a "blackout period" affecting several 401(k) plans administered by Duke Energy and Spectra Energy. This suspension of participant transactions in Duke Energy Common Stock Fund and Spectra Energy Common Stock Fund is scheduled to occur from December 29, 2006, until the week of January 5, 2007, to facilitate the processing of trades and the receipt of Spectra Energy shares in connection with an anticipated spinoff. This blackout period also imposes trading restrictions on directors and executive officers of both companies under Sarbanes-Oxley Act regulations.
Key Highlights
- 1Duke Energy sets 2007 short-term incentive (STI) performance goals for executive officers, weighted 80% on financial measures and 20% on individual objectives.
- 2The primary financial measure for the 2007 STI at Duke Energy is ongoing earnings per share (EPS) with a target of $1.15 per share.
- 3Spectra Energy Corp is expected to have a 2007 STI financial measure based on ongoing EPS with a performance target of $1.40 per share.
- 4Both Duke Energy's and Spectra Energy's 2007 STI targets are non-GAAP measures, excluding "special items."
- 5A temporary trading suspension (blackout period) is announced for Duke Energy and Spectra Energy Common Stock Funds within several 401(k) plans.
- 6The blackout period is expected from December 29, 2006, to the week of January 5, 2007, to accommodate a Spectra Energy spinoff.
- 7Directors and executive officers will be restricted from trading Duke Energy or Spectra Energy common stock during the blackout period due to Sarbanes-Oxley Act provisions.