Summary
This Form 8-K filing by Edison International (EIX) on February 27, 2006, details the compensation decisions made by its Compensation and Executive Personnel Committee on February 21, 2006. The key information for investors centers on the structure and approval of long-term incentive awards for 2006 and the payment of cash bonuses for 2005 to its executive officers. These disclosures are important for understanding executive compensation and alignment with shareholder interests.
Key Highlights
- 1Edison International's Compensation Committee approved long-term incentive awards for 2006, comprising 75% nonqualified stock options and 25% performance shares.
- 2Cash bonuses for 2005 performance were approved for executive officers.
- 3John E. Bryson, Chairman, President, and CEO, received a 2005 cash bonus of $2,100,000.
- 4Theodore F. Craver, Jr., Chairman, President, and CEO of Edison Mission Energy, received a 2005 cash bonus of $798,000.
- 5Alan J. Fohrer, CEO of SCE, received a 2005 cash bonus of $745,000.
- 6Thomas R. McDaniel, EVP, CFO, and Treasurer, received a 2005 cash bonus of $700,000.
- 7Robert G. Foster, former President of SCE, received a prorated bonus of $521,407 upon his retirement in late 2005.
Frequently Asked Questions
The primary purpose of this 8-K filing is to disclose material events regarding executive compensation, specifically the approval of long-term incentive awards for 2006 and the payout of 2005 cash bonuses to Edison International's executive officers.
For 2006, long-term incentive awards for Edison International's executive officers will consist of two components: 75% in the form of Edison International nonqualified stock options and 25% in the form of Edison International performance shares.
For 2005, John E. Bryson (Chairman, President, CEO) received $2,100,000; Theodore F. Craver, Jr. (Chairman, President, CEO of Edison Mission Energy) received $798,000; Alan J. Fohrer (CEO of SCE) received $745,000; and Thomas R. McDaniel (EVP, CFO, Treasurer) received $700,000.
Yes, the filing states that 25% of the 2006 long-term incentive award value will be in the form of 'performance shares,' indicating a component tied to company performance beyond just stock options.