8-KLeadership Changes

FIRSTENERGY CORP 8-K Report, Executive Changes (Sep 24, 2012)

Filed September 24, 2012For Securities:FE

Summary

This 8-K filing from FirstEnergy Corp. on September 24, 2012, details an amendment to their Change In Control Severance Plan (CIC Severance Plan). The primary change, effective January 1, 2014, introduces prorated annual bonus payments at target levels for participants whose employment terminates in the year of a change in control, based on the number of days employed. This aligns the plan with current market practices. Additionally, the term of the CIC Severance Plan has been extended by one year to December 31, 2014. The plan is designed to provide severance benefits to eligible executives, including named executive officers, upon involuntary termination in connection with a change in control of the company. This amendment impacts the compensation structure for executive departures during a change in control event.

Key Highlights

  • 1Amendment to FirstEnergy Corp.'s Change In Control Severance Plan (CIC Severance Plan) approved.
  • 2Effective Date of Amendment: January 1, 2014.
  • 3Key Change: Annual bonus awards payable in the year of termination will be prorated based on days employed at target, reflecting market practice.
  • 4Prior Plan: Annual bonus was paid in full at target without proration.
  • 5Extended Plan Term: CIC Severance Plan term extended to December 31, 2014, with automatic annual renewal provisions.
  • 6Purpose: To provide severance benefits to eligible executives upon involuntary termination linked to a change in control.

Frequently Asked Questions

The main change is that any annual bonus payable in the year a participant's employment is terminated due to a change in control will now be paid on a prorated basis at target, based on the number of days employed during that plan year. Previously, the full target bonus was paid without proration.

The amendment is effective January 1, 2014, after the expiration of the current plan term.

The term of the CIC Severance Plan has been extended to December 31, 2014. The plan will automatically renew each year for an additional year unless the Board decides not to extend it.

The plan is designed to provide severance benefits to certain eligible executives of FirstEnergy, including all actively employed named executive officers, in the event their employment terminates involuntarily in connection with a change in control of the company.