Summary
Williams Companies, Inc. (WMB) announced on December 16, 2005, the approval of a new long-term equity compensation program for its executive officers, effective in the first quarter of each performance period. This program is designed to align executive compensation with company performance by focusing on improvements in Economic Value Added (EVA) over a three-year period. The structure of the program allows for the Compensation Committee to set specific three-year EVA improvement targets. The number of performance-based shares earned by executives will be directly tied to the achievement of these targets, with payouts ranging from 0% to 200% of the target shares based on performance levels between a threshold and a stretch goal. This initiative aims to incentivize long-term value creation and shareholder returns.
Key Highlights
- 1Williams Companies implemented a new long-term equity compensation program for its executive officers.
- 2The program links executive pay to company performance through performance-based shares.
- 3Performance targets are set over a three-year period.
- 4The primary performance metric is improvement in Economic Value Added (EVA).
- 5Executives can earn between 0% and 200% of target shares based on EVA achievement.
- 6The Compensation Committee has the authority to set specific EVA targets each performance period.
- 7This initiative aims to align executive incentives with long-term shareholder value.