01—Abstract
Summary
Summary of the 8-K filed May 30, 2007. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Paul J. Bonavia, President, Utilities Group, added as a participant in the Xcel Energy Senior Executive Severance and Change-in-Control Policy.
- Effective date of Mr. Bonavia's participation in the Policy is June 1, 2007.
- Mr. Bonavia's prior separate change-in-control agreement has been terminated.
- Mr. Bonavia's employment agreement amended to reflect benefits will be paid under the Policy.
- Severance package for Mr. Bonavia upon change-in-control and termination includes 3x base salary and target incentive.
- Benefits also include prorated incentive, outplacement, pension enhancements, continued insurance for 3 years, and perquisites for 3 years.
- Provision for excise tax gross-up payment included, subject to limitations.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The main purpose of this 8-K filing is to report an amendment to Xcel Energy Inc.'s Senior Executive Severance and Change-in-Control Policy, specifically adding Mr. Paul J. Bonavia as a participant and detailing his change-in-control benefits.
What are the key change-in-control benefits for Mr. Bonavia?
If Mr. Bonavia is terminated (not for cause, disability, death, or voluntary retirement) within two years following a change in control, he is entitled to receive a cash payment of three times his annual base salary and target annual incentive award, prorated target annual incentive, outplacement services, enhanced pension/retirement contributions, continued medical/dental/life insurance for three years, and continued perquisite allowance for three years. He may also receive a payment to cover excise taxes.
How does this change affect Mr. Bonavia's previous agreements?
Mr. Bonavia's separate change-in-control agreement has been terminated, and his employment agreement has been amended to ensure his change-in-control benefits are now governed by the Senior Executive Severance and Change-in-Control Policy.
Does Mr. Bonavia receive the greater of his old or new agreement benefits?
Under the terms of his amended employment agreement, upon termination following a change-in-control, Mr. Bonavia will receive the greater of the payments outlined in the Policy or the payments he would have been entitled to under his employment agreement.
04—Continue