Xcel Energy 2009 Annual Report Download - page 118

There were approximately 41,000 RSUs that vested during the year ended Dec. 31, 2009. The total fair value of RSUs
vested during the year ended 2009 was $0.8 million. No RSUs vested during the year ended Dec. 31, 2008. The total
fair value of RSUs vested during the year ended 2007 was $14.2 million.
Stock Equivalent Unit Plan — Non-employee members of the Xcel Energy Board of Directors receive annual awards of
stock equivalent units, with each unit having a value equal to one share of Xcel Energy common stock. The annual
grants are vested as of the date of each member’s election to the board of directors; there is no further service or other
condition attached to the annual grants after the member has been elected to the board. Additionally, directors may
elect to receive their fees in stock equivalent units in lieu of cash, and similarly have no further service or other
conditions attached. Dividends on Xcel Energy’s common stock are converted to stock equivalent units and granted
based on the number of stock equivalent units held by each participant as of the dividend date. The stock equivalent
units are payable as a distribution of Xcel Energy’s common stock upon a director’s termination of service.
The stock equivalent units granted for the years ended Dec. 31 were as follows:
2009 2008 2007
Granted units ................................... 72,185 85,382 69,044
Grant date fair value ............................... $17.87 $ 20.46 $ 22.60
A summary of the stock equivalent unit changes for the year ended Dec. 31, 2009 are as follows:
Weighted
Average Grant
Units Date Fair Value
Stock equivalent units at Jan. 1, 2009 .............................. 677,738 $19.81
Granted ................................................. 72,185 17.87
Units distributed ............................................ (162,923) 19.74
Dividend equivalents ......................................... 34,803 18.76
Stock equivalent units at Dec. 31, 2009 ............................. 621,803 19.50
PSP Awards — Xcel Energy’s Board of Directors has granted PSP awards under the Xcel Energy Omnibus Incentive
Plan approved by the shareholders in 2000 and under the Xcel Energy 2005 Omnibus Incentive Plan. Both plans allow
Xcel Energy to attach various performance goals to the PSP awards granted. The PSP awards have been historically
dependent on a single measure of performance, Xcel Energy’s TSR measured over a three-year period. Xcel Energy’s
TSR is compared to the TSR of other companies in the EEI Investor-Owned Electrics index. At the end of the
three-year period, potential payouts of the PSP awards range from 0 percent to 200 percent, depending on Xcel
Energy’s TSR compared to the peer group.
The PSP awards granted for the years ended Dec. 31 were as follows:
2009 2008 2007
(In Thousands)
Awards granted .................................. 207 216 231
The 2007, 2008 and 2009 awards were granted under the Xcel Energy 2005 Omnibus Incentive Plan.
The total settlement amounts of performance awards settled during the years ended Dec. 31 were as follows:
2009 2008 2007
(In Thousands)
Awards settled ................................... 293 328 395
Settlement amount (cash and common stock) ............... $5,195 $6,826 $9,613
Share-Based Compensation Expense — The vesting of the RSUs is predicated on the achievement of a performance
condition, which is the achievement of an earnings per share or environmental measures target. RSU awards are
considered to be equity awards, since the plan settlement determination (shares or cash) resides with Xcel Energy and
not the participants. In addition, these awards have not been previously settled in cash and Xcel Energy plans to
continue electing share settlement. Restricted stock as granted under the Xcel Energy Executive Annual Incentive Award
Plan is also considered to be an equity award. The grant date fair value of RSUs and restricted stock is expensed as
employees vest in their rights to those awards.
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