APS 2015 Annual Report Download - page 238

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The award opportunity for Mr. Edington under the Palo Verde Plan is based on the achievement of specified 2016 APS
earnings levels and specified business unit performance goals. No incentive payment will be awarded to Mr. Edington under the APS
earnings portion of the Palo Verde Plan unless Palo Verde achieves specified business unit performance goals and APS achieves a
target threshold earnings level. The business unit performance indicators for Mr. Edington under the Palo Verde Plan are in the
functional areas of employees, operational excellence, performance improvement and shareholder value. Mr. Edington has a threshold
award opportunity of 16.3% of his base salary, a target of 65% of his base salary, and up to a maximum of 130% of his base salary,
depending on the achievement of the earnings and business unit performance goals, separately or in combination, and before
adjustment for individual performance.
In addition, consistent with Mr. Edington’s letter agreement regarding his employment, the Board approved a separate
compensation opportunity for Mr. Edington of up to $125,000 upon the achievement of specific performance measures tied to Palo
Verde operations performance and regulatory evaluations.
Any awards for Messrs. Brandt, Edington, Schiavoni, Hatfield and Falck will be subject to potential forfeiture or recovery to
the extent that will be called for by the Company’s clawback policy.