8-KLeadership ChangesExhibits & Filings

NEXTERA ENERGY INC 8-K Report, Executive Changes (Dec 21, 2022)

Filed December 21, 2022For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE) filed an 8-K on December 20, 2022, detailing the approval of its 2023 Executive Annual Incentive Plan (2023 Annual Incentive Plan) by the Board of Directors on December 16, 2022. This new plan replaces the existing 2013 plan, which expires at the end of 2022, and operates on substantially similar terms. The plan is designed to incentivize key executives by offering annual cash incentive compensation based on the attainment of pre-established corporate performance goals. The key features include a maximum payout of $15,000,000 per participant annually, with the Compensation Committee retaining discretion to adjust payouts, including setting them to zero if performance targets are not met. The plan's performance goals can be flexible, allowing for various metrics and adjustments as determined by the Compensation Committee. This initiative underscores NEE's commitment to aligning executive compensation with corporate performance and strategic objectives for the upcoming decade.

Key Highlights

  • 1NextEra Energy approved the 2023 Executive Annual Incentive Plan, replacing the expiring 2013 plan.
  • 2The plan is designed for key executives and operates on similar terms to the previous incentive program.
  • 3Annual incentive compensation is tied to the achievement of pre-established corporate performance goals set by the Compensation Committee.
  • 4The maximum annual incentive compensation payable to any participant is capped at $15,000,000.
  • 5The Compensation Committee has the discretion to reduce, but not increase, incentive payouts and can set payouts to $0 if performance goals are not met.
  • 6Performance goals can be based on various metrics, including absolute/relative, pre-tax/after-tax, and consolidated/business-unit measures.
  • 7The 2023 Annual Incentive Plan will be in effect until December 31, 2032.

Frequently Asked Questions

The primary purpose of the 2023 Executive Annual Incentive Plan is to provide annual cash incentive compensation to key executives at NextEra Energy and its subsidiaries. This compensation is directly linked to the achievement of specific corporate performance goals, designed to align executive interests with the company's overall strategic objectives and financial performance.

Under the 2023 Annual Incentive Plan, the maximum annual incentive compensation that any single participant can receive is $15,000,000. This amount is contingent upon achieving the established performance goals.

Yes, the Compensation Committee retains significant discretion. While they set the performance goals and maximum payout, they have the authority to reduce, but not increase, the incentive compensation payable to any participant. Crucially, if performance goals are not met, the incentive compensation can be set to $0.

The 2023 Executive Annual Incentive Plan is effective from January 1, 2023, and is set to expire on December 31, 2032, covering a ten-year period.