Progress Energy 2008 Annual Report Download - page 136

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PROXY STATEMENT
PROXY STATEMENT
TABLE OF CONTENTS
Page
Annual Meeting and Voting Information
Proposal 1—Election of Directors ...................................................... 4
Principal Shareholders ............................................................... 7
Management Ownership of Common Stock ............................................... 7
Transactions with Related Persons ...................................................... 9
Section 16(a) Beneficial Ownership Reporting Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Corporate Governance Guidelines and Code of Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Director Independence ............................................................... 11
Board, Board Committee and Annual Meeting Attendance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Board Committees .................................................................. 12
Executive Committee ............................................................. 12
Audit and Corporate Performance Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Corporate Governance Committee ................................................... 13
Finance Committee ............................................................... 13
Nuclear Project Oversight Committee (ad hoc) ......................................... 13
Operations and Nuclear Oversight Committee .......................................... 13
Organization and Compensation Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Compensation Committee Interlocks and Insider Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Director Nominating Process and Communications with Board of Directors . . . . . . . . . . . . . . . . . . . . . 15
Compensation Discussion and Analysis .................................................. 16
Compensation Tables ................................................................ 40
Summary Compensation ........................................................... 40
Grants of Plan-Based Awards ....................................................... 44
Outstanding Equity Awards at Fiscal Year End .......................................... 48
Option Exercises and Stock Vested ................................................... 50
Pension Benefits ................................................................. 51
Nonqualified Deferred Compensation ................................................ 53
Cash Compensation and Value of Vesting Equity ........................................ 55
Potential Payments Upon Termination ................................................ 57
Director Compensation ............................................................ 68
Equity Compensation Plan Information .................................................. 71
Report of the Audit and Corporate Performance Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Disclosure of Independent Registered Public Accounting Firm’s Fees . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Proposal 2—Ratification of Selection of Independent Registered Public Accounting Firm . . . . . . . . . . 74
Proposal 3—Approval of the Progress Energy, Inc. 2009 Executive Incentive Plan to Comply with
Section 162(m) of the Internal Revenue Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Financial Statements ................................................................. 78
Future Shareholder Proposals .......................................................... 78
Other Business ..................................................................... 79
Exhibit A—Policy and Procedures with Respect to Related Person Transactions .................. A-1
Exhibit B—Standards for Board Independence (excerpted from Progress Energy, Inc.
Corporate Governance Guidelines) ................................................... B-1
Exhibit C—Audit and Corporate Performance Committee Charter ............................. C-1
Exhibit D—Progress Energy, Inc. 2009 Executive Incentive Plan .............................. D-1