Summary
This Form 8-K filing by Consolidated Edison, Inc. (Con Edison) on January 27, 2005, primarily announces the issuance of awards to executive officers under various incentive plans, including the Executive Incentive Plan (EIP), Annual Incentive Plans, and the Long Term Incentive Plan (LTIP). These awards involve restricted stock units and stock options, with their value contingent on company performance relative to benchmarks and other specified goals. The filing also notes that Con Edison issued a press release on January 27, 2005, reporting its 2004 results of operations, with related financial statements furnished as part of this report.
Key Highlights
- 1Executive officers of Consolidated Edison, Inc. received awards under the Executive Incentive Plan (EIP), Annual Incentive Plans, and Long Term Incentive Plan (LTIP).
- 2Awards include restricted stock units and stock options, with performance-based vesting and exercise conditions.
- 3The value of restricted stock unit awards is tied to Con Edison's total shareholder return relative to the Standard & Poor’s Electric Utilities Index.
- 4Stock option grants allow purchase of Con Edison common shares at fair market value at the time of grant.
- 5The company furnished a press release on January 27, 2005, detailing its 2004 results of operations and financial condition.
- 6Forms of restricted stock unit awards and stock option agreements under the LTIP are filed as exhibits.
Frequently Asked Questions
Executive officers received awards under the Executive Incentive Plan (EIP), Annual Incentive Plans (including the Con Edison Annual Incentive Plan and Orange and Rockland Utilities, Inc. Annual Team Incentive Plan), and the Long Term Incentive Plan (LTIP). These awards included restricted stock units and stock options.
Fifty percent of the restricted stock units awarded are subject to adjustment based on Con Edison's total shareholder return relative to the Standard & Poor’s Electric Utilities Index over a specified performance period. The other fifty percent are based on determinations related to the EIP or goals of Con Edison's unregulated subsidiaries. The adjustment factor can range from 0% to 150%.
The stock option grants provide the right to purchase Con Edison common shares at an exercise price equal to the fair market value on the grant date. These options have a term of not more than ten years and may be adjusted only in specific circumstances such as stock splits or dividends.
Yes, the filing notes that Con Edison issued a press release on January 27, 2005, reporting its 2004 results of operations. Condensed unaudited consolidated balance sheets and income statements for 2004 and 2003 were attached to that press release and furnished with this 8-K filing.