Progress Energy 2004 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2004 Progress Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

18
Audit and Corporate Performance Committee
The work of this committee includes reviewing the
annual and quarterly financial results of the company
and the various periodic reports the company files
with the SEC. It is responsible for retaining the
company’s external auditors, overseeing and moni-
toring the auditors’ activities and pre-approving all
external audit and non-audit services and fees. This
committee also oversees the activities of the internal
audit department and the Corporate Ethics Program.
Corporate Governance Committee
The responsibilities of this committee include making
recommendations on the structure, charter, practices
and policies of the board, including amendments
to the articles of incorporation and bylaws. This
committee ensures that processes are in place for
annual CEO performance appraisal, reviews of
succession planning and management development.
It also recommends the process for the annual
assessment of board performance and criteria for
board membership. In addition, it proposes nominees
to the board.
Finance Committee
This committee reviews and oversees the company’s
financial policies and planning and the company’s
pension funds. It monitors the company’s financial
position, reviews the company’s strategic investments
and financing options and recommends changes in
the company’s dividend policy.
Operations, Environmental, Health and Safety
Issues Committee
This committee reviews the company’s load forecasts
and plans for generation, transmission and distri-
bution, fuel production and transportation, customer
service, energy trading, term marketing and other
company operations. The committee assesses
company policies, procedures and practices relative
to environmental protection and safety-related
issues and advises and makes recommendations
to the board regarding these matters.
Organization and Compensation Committee
This committee reviews personnel policies and
procedures for consistency with governmental rules
and regulations and ensures that the company
attracts and retains competent, talented employees.
The committee reviews all executive development
and management succession plans, evaluates
CEO performance and makes senior executive com-
pensation decisions.
RESPONSIBILITIES OF KEY BOARD COMMITTEES
The Sarbanes-Oxley Act of 2002 requires the inclusion of a report regarding
internal controls over financial reporting in annual reports. As a result of
our focus on this issue throughout 2004, Progress Energy has achieved full
compliance with the applicable requirements.