8-KLeadership Changes

ENTERGY CORP /DE/ 8-K Report, Executive Changes (Jan 31, 2008)

Filed January 31, 2008For Securities:ETR

Summary

This 8-K filing from Entergy Corp. /de/ (ETR) reports on a compensatory arrangement for its Executive Vice President and Chief Financial Officer, Mr. Leo P. Denault. On January 25, 2008, the Personnel Committee awarded Mr. Denault 24,000 restricted stock units (RSUs). These RSUs are tied to the company's common stock value but do not confer voting rights or dividend entitlements, differing from actual shares. The award is structured to vest in three equal tranches over three years, with full vesting anticipated by January 25, 2013, contingent upon his continued employment. Upon vesting, Mr. Denault will receive a cash payment for each vested unit equivalent to the closing price of Entergy's common stock on the respective vesting date, net of applicable taxes. The RSUs may vest earlier under specific circumstances, such as a change of control, death, or disability. This award was made under the company's 2007 Equity Ownership and Long Term Incentive Plan, which has been approved by shareholders, aligning management's interests with those of the company and its investors through equity-based compensation.

Key Highlights

  • 1Award of 24,000 restricted stock units (RSUs) to CFO Leo P. Denault on January 25, 2008.
  • 2RSUs vest in three equal installments over three years, with full vesting by January 25, 2013.
  • 3Vested RSUs will be settled in cash, with the amount per unit based on the closing stock price on the vesting date.
  • 4RSUs do not grant voting rights or dividend entitlements, unlike common stock.
  • 5Vesting may accelerate under certain conditions, including change of control, death, or disability.
  • 6The award is made under the shareholder-approved 2007 Equity Ownership and Long Term Incentive Plan.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose a material compensatory arrangement, specifically the award of restricted stock units (RSUs) to Entergy's Executive Vice President and Chief Financial Officer, Mr. Leo P. Denault.

Mr. Denault will receive a cash payment for each vested restricted stock unit. The cash amount per unit will be equal to the closing price of Entergy's common stock on the respective vesting date, after deduction of applicable withholding taxes.

The 24,000 RSUs vest in three equal installments of 8,000 units each, on January 25, 2011, January 25, 2012, and January 25, 2013, provided Mr. Denault remains employed by the company. Earlier vesting can occur upon a change of control, death, or disability.

No, the restricted stock units do not entitle the owner to vote on company matters or to receive dividends. They are distinct from actual shares of common stock in these regards.