8-KLeadership ChangesExhibits & Filings

EDISON INTERNATIONAL 8-K Report, Executive Changes (May 2, 2007)

Filed May 2, 2007For Securities:EIX

Summary

Edison International (EIX) filed an 8-K report on May 2, 2007, detailing the shareholder approval of the 2007 Performance Incentive Plan (the "2007 Plan") on April 26, 2007. This plan allows for the issuance of up to 8,500,000 additional shares of common stock, plus shares from expired or cancelled awards under prior plans, to be used for various equity-based compensation awards for officers, employees, and non-employee directors. Furthermore, the report outlines the approval of the 2007 Executive Bonus Program, also contingent on the 2007 Plan's approval. This program establishes a bonus pool with a maximum value of 1.5% of the company's fiscal year 2007 consolidated earnings from continuing operations. Specific named executive officers, including the CEO John E. Bryson, have been allocated a maximum percentage of this bonus pool, though the Compensation Committee retains discretion to reduce payouts.

Key Highlights

  • 1Shareholder approval obtained for the 2007 Performance Incentive Plan on April 26, 2007.
  • 2The 2007 Plan allows for the issuance of up to 8,500,000 new shares, plus available shares from prior plans.
  • 3The 2007 Plan permits various award types including stock options, restricted stock, and stock units.
  • 4The 2007 Executive Bonus Program was approved, linked to the 2007 Plan's shareholder approval.
  • 5The 2007 Bonus Program's pool is capped at 1.5% of fiscal year 2007 consolidated earnings from continuing operations.
  • 6Key executive officers, including the CEO, have maximum percentage allocations of the bonus pool.
  • 7The Compensation Committee has discretion to reduce but not increase individual bonus payouts or reallocate amounts between participants.

Frequently Asked Questions

The primary purpose was to report the shareholder approval of the 2007 Performance Incentive Plan and the subsequent approval of the 2007 Executive Bonus Program.

The plan allows for the issuance of 8,500,000 shares of common stock, plus any shares from outstanding awards under prior plans that expire or are cancelled without being exercised.

The bonus pool is capped at a maximum value equivalent to 1.5% of Edison International's consolidated earnings from continuing operations for fiscal year 2007.

No, the Compensation and Executive Personnel Committee can only reduce the actual amount payable to an officer; they are not allowed to increase it or re-allocate reduced amounts between participants.