Progress Energy 2008 Annual Report Download - page 169

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Progress Energy Proxy Statement
33
The Committee provides employment agreements to the named executive officers because it
believes that such agreements are important for the Company to be competitive and retain a cohesive
management team. The employment agreements also provide for a defined employment arrangement with
the executives and provide various protections for the Company, such as prohibiting competition with the
Company, solicitation of the Company’s employees and disclosure of confidential information or trade
secrets. The Committee believes that the terms of the employment agreements are in line with general
industry practice.
7. EXECUTIVE PERQUISITES
We provide certain perquisites and other benefits to our executives in lieu of including the costs
of those benefits in the executives’ base salaries. Under this approach, the costs of perquisites and other
personal benefits are not considered part of base salary and therefore do not affect the calculation of awards
and benefits under our various compensation arrangements (e.g., incentive compensation plans and post-
employment compensation arrangements). Amounts attributable to perquisites are disclosed in the “All
Other Compensation” column of the Summary Compensation Table on page 40.
During 2008, the Committee evaluated the perquisites program to determine whether it was
competitive and consistent with the Company’s compensation philosophy. As a result of this evaluation, the
Committee took action to reduce the perquisites provided to the named executive officers. The following
table shows the perquisites provided to the named executive officers during the first quarter of 2008 and
notes which perquisites were discontinued effective April 1, 2008.
Perquisites for First Quarter Status
Effective April 1, 2008
Car Allowance Discontinued
Country Club Membership Discontinued
Nonbusiness-Related Use of Event Tickets Discontinued
Tax Gross-Up Payment for Perquisites1Discontinued
Personal Travel on Corporate Aircraft2Discontinued
Personal Spousal Travel on Corporate Aircraft2Discontinued
“Business-Related” Spousal Travel on Corporate Aircraft3Continuing
Financial and Estate Planning Continuing
Tax Preparation Services Continuing
Luncheon and Health Club Dues Continuing
Executive Physical Continuing
Internet and Telecom Access4Continuing
Home Security Continuing
Accidental Death and Dismemberment Insurance Continuing
1 Executives received gross-up payments for state and federal income tax obligations related to perquisites
provided during the first quarter of 2008.
2 Personal travel on the Company’s aircraft in the event of a family emergency or similar situation is
permitted with the approval of the Chief Executive Officer.