8-KLeadership ChangesExhibits & Filings

Duke Energy CORP 8-K Report, Executive Changes (Mar 8, 2007)

Filed March 8, 2007For Securities:DUKDUKBDUK-PA

Summary

Duke Energy Corporation's Form 8-K filing on March 8, 2007, primarily details actions taken by its Compensation Committee concerning executive compensation for the 2007 fiscal year. The report outlines the establishment of performance goals for the CEO, Mr. Rogers, related to performance shares granted in 2006. These goals are weighted 80% on earnings per share (EPS) and 20% on individual strategic and operational measures, with specific threshold and target EPS levels set for 2007. The payout of these performance shares is contingent on achieving these objectives, with potential adjustments for safety performance. The filing also announces the establishment of the 2007 Long-Term Incentive Program for other key executives, Mr. Hauser and Dr. Shaw, through the granting of phantom stock and performance share awards. These awards are made under the Duke Energy Corporation 2006 Long-Term Incentive Plan. While this filing does not contain significant financial results or operational updates, it provides insight into the company's executive incentive structures and performance-based compensation strategies for the upcoming year.

Key Highlights

  • 1Duke Energy established 2007 performance goals for CEO Mr. Rogers' performance shares, impacting a portion of his 2006 grant.
  • 2Performance share vesting for Mr. Rogers in 2007 is tied to achieving weighted goals: 80% on ongoing earnings per share (EPS) and 20% on individual strategic/operational measures.
  • 3Specific 2007 EPS targets for Mr. Rogers' performance shares are set at $1.05 (threshold) and $1.15 (target).
  • 4The CEO's performance shares are eligible for a full payout if target performance is met overall, with provisions for partial payout if one component is above target and the other is below.
  • 5A potential reduction of up to 5% in performance share payout exists if predetermined safety goals are not achieved.
  • 6Duke Energy established its 2007 Long-Term Incentive Program for Messrs. Hauser and Dr. Shaw, granting phantom stock and performance share awards.
  • 7The incentive awards for Hauser and Shaw fall under the Duke Energy Corporation 2006 Long-Term Incentive Plan.

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