Summary
This 8-K filing from Xcel Energy Inc. (XEL) on March 23, 2007, announces the retirement of Vice President and General Counsel, Gary R. Johnson, effective March 31, 2007, after more than 18 years of service. The report details the comprehensive retirement agreement reached between Mr. Johnson and the company, outlining the compensation and benefits he will receive. This includes the exercise of outstanding stock options, participation in specific performance share and restricted stock units, vested benefits from various pension and retirement plans, and continued health and life insurance coverage. Investors should note the significant financial provisions of the retirement agreement, including substantial cash payments and the estimated present values of pension and retirement benefits. While Mr. Johnson will receive these benefits, the filing also clarifies that the offered package is less than what he would have received under the company's severance policy for termination without cause. The agreement is contingent on Mr. Johnson signing a release of claims.
Key Highlights
- 1Gary R. Johnson, Vice President and General Counsel, announced his retirement effective March 31, 2007.
- 2Mr. Johnson served Xcel Energy for over 18 years.
- 3A retirement agreement outlines Mr. Johnson's compensation and benefits post-employment.
- 4Benefits include stock option exercise, participation in 2005 performance/restricted stock awards, and vested pension/retirement plan benefits.
- 5Estimated value of vested pension/retirement plans is approximately $4.5 million.
- 6The agreement includes several cash payments totaling over $1.2 million, payable in 2007.
- 7Mr. Johnson must sign a release of claims to receive these benefits, and the package is less than a 'termination without cause' severance.