Summary
This Form 8-K filing by Xcel Energy Inc. reports a change in executive compensation arrangements, specifically concerning Mr. Paul J. Bonavia, President of the Utilities Group. Effective June 1, 2007, Mr. Bonavia was added as a participant in the Xcel Energy Senior Executive Severance and Change-in-Control Policy. Prior to this, he had a separate change-in-control agreement and employment agreement. The amendment signifies a standardization of severance and change-in-control benefits for key executives. The filing details the specific benefits Mr. Bonavia will be entitled to upon a change in control and subsequent termination, which include a substantial cash payment (three times his base salary and target incentive), prorated incentive compensation, outplacement services, pension and retirement plan enhancements, continued benefits, and a perquisite allowance for a period of three years. The agreement also includes a provision to cover potential excise taxes.
Key Highlights
- 1Paul J. Bonavia, President, Utilities Group, added as a participant in the Xcel Energy Senior Executive Severance and Change-in-Control Policy.
- 2Effective date of Mr. Bonavia's participation in the Policy is June 1, 2007.
- 3Mr. Bonavia's prior separate change-in-control agreement has been terminated.
- 4Mr. Bonavia's employment agreement amended to reflect benefits will be paid under the Policy.
- 5Severance package for Mr. Bonavia upon change-in-control and termination includes 3x base salary and target incentive.
- 6Benefits also include prorated incentive, outplacement, pension enhancements, continued insurance for 3 years, and perquisites for 3 years.
- 7Provision for excise tax gross-up payment included, subject to limitations.