8-KLeadership ChangesExhibits & Filings

Duke Energy CORP 8-K Report, Executive Changes (Jun 26, 2009)

Filed June 26, 2009For Securities:DUKDUKBDUK-PA

Summary

Duke Energy Corporation (DUK) filed an 8-K on June 26, 2009, reporting on significant executive changes. The most notable development is the promotion of Ms. Lynn J. Good to Chief Financial Officer (CFO), effective June 16, 2009. Her base salary was increased from $500,000 to $575,000 to reflect her new role. While her incentive opportunity percentages remain unchanged, her short-term incentive for 2009 will be prorated based on her new, higher salary for the period after June 15th. Additionally, the company announced a Retirement Agreement with Mr. David L. Hauser, the outgoing CFO, effective June 22, 2009. This agreement includes Mr. Hauser providing transition services for six months and adhering to restrictive covenants. In return, his existing performance share awards for multiple periods will be calculated based on actual performance without prorating for his earlier retirement.

Key Highlights

  • 1Lynn J. Good promoted to Chief Financial Officer (CFO) effective June 16, 2009.
  • 2Ms. Good's base salary increased to $575,000 from $500,000.
  • 3Ms. Good's 2009 short-term incentive opportunity will be prorated based on her new salary for the post-June 15th period.
  • 4David L. Hauser retires as CFO, effective June 22, 2009.
  • 5Mr. Hauser's retirement agreement includes transition services and restrictive covenants (non-solicitation, non-compete, etc.).
  • 6Mr. Hauser's performance share awards will be calculated on actual performance without proration for retirement, covering 2007-2009, 2008-2010, and 2009-2011 periods.

Frequently Asked Questions

This 8-K filing is primarily to report on changes within Duke Energy's senior executive team, specifically the promotion of Lynn J. Good to CFO and the retirement of David L. Hauser.

Ms. Good's base salary has been increased to $575,000. Her short-term incentive opportunity percentage remains the same, but the calculation for the remainder of 2009 will use the new, higher base salary.

Mr. Hauser will provide transition services for six months and comply with non-solicitation, non-compete, and non-disparagement clauses. In exchange, his outstanding performance share awards will be paid based on actual performance without being prorated due to his early retirement from those performance periods.

The filing does not detail broader financial implications beyond the changes in compensation and retirement payouts for the named executives. Investors should refer to the full retirement agreement for specific details on Mr. Hauser's payout structure.