What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to report on the actions taken by The Williams Companies' Compensation Committee on February 25, 2008, concerning executive compensation. This includes awarding incentives based on 2007 performance, establishing the 2008 incentive program, and confirming the earning of certain restricted stock units.

How was executive compensation determined for 2007?

Executive compensation for 2007 was determined based on the company's achievement of its Economic Value Added (EVA) incentive targets. Since the targets were exceeded, the Compensation Committee approved annual incentive awards for eligible employees, including significant amounts for the Chairman, President, and CEO, Steven J. Malcolm, and other senior executives. A portion of previously reserved incentive awards was also released.

What are the key components of the 2008 incentive and equity programs?

For 2008, the annual incentive program will be based on the company's EVA performance. Equity awards, including stock options and performance-based and time-based restricted stock units, were also granted. Performance-based awards are contingent on achieving EVA targets over a three-year period, with potential payouts ranging from 0% to 200% of the target amount.

What does the filing indicate about the company's financial performance in 2007, as measured by EVA?

The filing indicates that The Williams Companies significantly exceeded its established Economic Value Added (EVA) targets for 2007. This achievement was sufficient to trigger the payout of annual incentive awards and the release of previously reserved incentives, as well as the earning of the final tranche of 2005 performance-based restricted stock units.

WMB 8-K: Leadership Changes

Summary

This Form 8-K filing by The Williams Companies, Inc. (WMB) reports on actions taken by its Compensation Committee on February 25, 2008, primarily related to executive compensation and incentive programs. The committee determined that the company exceeded its 2007 Economic Value Added (EVA) targets, resulting in the approval of significant annual incentive awards for key executives, including the CEO, CFO, and other senior vice presidents. These payouts include both earned portions and the release of previously reserved incentive amounts, reflecting strong 2007 performance against established metrics. Furthermore, the filing details the approval of the 2008 annual incentive program, which will be funded and measured by the company's 2008 EVA performance. The report also confirms that the final one-third of performance-based restricted stock units granted in 2005 have been earned due to the attainment of the 2007 EVA performance target. Finally, the committee approved 2008 equity awards, including stock options and restricted stock units, for executives and other employees, with vesting and earning periods tied to future performance and tenure.

Key Highlights

1Williams Companies exceeded its 2007 Economic Value Added (EVA) incentive targets, triggering incentive payouts for executive officers.
2Significant annual incentive awards were approved for 2007 performance, with specific amounts detailed for the CEO, CFO, and other senior executives.
3One-third of previously reserved annual incentive program awards were released due to the achievement of 2007 performance targets.
4A new annual incentive program for 2008 was approved, with funding and payouts based on the company's 2008 EVA performance.
5The final one-third of 2005 performance-based restricted stock units were earned, contingent on achieving the 2007 EVA performance target.
62008 equity awards, including stock options and restricted stock units, were granted to executive officers and other employees, with terms linked to performance and vesting schedules.

WILLIAMS COMPANIES, INC. 8-K Report, Executive Changes (Feb 29, 2008)

Summary

Key Highlights

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