What is the primary purpose of the 2014 Incentive Bonus Plan?

The primary purpose of the 2014 Incentive Bonus Plan is to provide a framework for compensating certain senior management employees, including executive officers, through variable pay tied to the achievement of specific performance goals. Awards can be made in cash, restricted stock units (RSUs), and/or performance units, aligning executive interests with company performance.

What types of performance metrics will be used to determine bonus awards?

The plan uses both annual and long-term performance metrics. For 2014, annual incentives are based on earnings per share targets and individual objectives such as safety statistics, return metrics, and strategic initiatives. Long-term incentives for the 2014-2016 period will focus on financial targets and strategic goals, including return metrics, revenue/operating income targets, and safety metrics.

Under what conditions can performance units be earned and what is the potential payout?

Performance units are earned based on the achievement of specific performance goals over a three-year period. The number of performance units earned can range from 0% to 200% of the target number, as determined by the Compensation Committee. Participants are also entitled to cash dividend equivalents on earned performance units. In cases of death or a Change in Control, a portion of performance units may become earned based on performance achieved up to that point and forecasted future achievement.

What happens to unearned performance units if an employee leaves the company?

Generally, if a participant's continuous service terminates before the Determination Date (when performance is assessed), all unearned performance units are forfeited. However, exceptions exist for death during continuous service or a Change in Control event, where units may become earned based on performance achieved at the time of the event.

PWR 8-K: Leadership Changes

Summary

Quanta Services, Inc. (PWR) filed an 8-K on March 7, 2014, reporting the adoption of the Quanta Services, Inc. 2014 Incentive Bonus Plan (the "Incentive Plan") by its Compensation Committee on March 4, 2014. This plan allows for bonus awards to be paid in cash, restricted stock units (RSUs), and/or performance units to certain senior management employees, including executive officers. The Incentive Plan ties awards to the achievement of annual and long-term performance goals. For 2014, annual goals include earnings per share targets and individual objectives such as safety statistics and strategic initiatives. Long-term incentives for the 2014-2016 period are based on financial and strategic targets. The Compensation Committee retains discretion for additional awards. This filing also outlines the terms of a form of performance unit award agreement, detailing how performance units are earned, the potential payout range (0% to 200% of target), and provisions for dividend equivalents, forfeitures, and accelerated vesting upon death or change in control.

Key Highlights

1Quanta Services, Inc. established a new 2014 Incentive Bonus Plan to incentivize senior management and executive officers.
2Awards under the new plan can be made in cash, restricted stock units (RSUs), and/or performance units.
3Performance-based compensation is structured around both annual and long-term goals.
4Annual incentive goals for 2014 include earnings per share targets and individual objectives.
5Long-term incentives (2014-2016) will be measured against financial and strategic targets.
6The Compensation Committee has the authority to make discretionary awards.
7A form of performance unit award agreement was approved, detailing earning potential (0-200% of target) and vesting conditions, including accelerated vesting in specific circumstances like death or change in control.

QUANTA SERVICES, INC. 8-K Report, Executive Changes (Mar 7, 2014)

Summary

Key Highlights

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