Progress Energy 2008 Annual Report Download - page 174

PROXY STATEMENT
38
For 2008, the Committee awarded Messrs. McArthur, Lyash and Yates MICP awards as described
in the table below.
Named Executive
Officer 2008 MICP Award Percent of Target Explanation of Award
John R. McArthur $250,000 113 Mr. McArthur was instrumental in refining
and accelerating implementation of our public
policy/regulatory strategy for addressing
climate change, and initiating efforts to
increase Service Company efficiency and
productivity, which resulted in lower cost
for our utilities. His achievements included
initiating the Continuous Business Excellence
process with a reorganized, leaner business
services organization and leading the Service
Company’s successful efforts to exceed its
productivity and O&M improvement targets.
Jeffrey J. Lyash $225,000 95 Mr. Lyash played a significant role in leading
the Levy project in meeting several major
milestones, leading efforts to gain strong
public and policy leader support for base-load
transmission; and meeting capital and O&M
budgets.
Lloyd M. Yates $210,000 89 Mr. Yates played a significant role in
leading PEC to exceed its net income goals,
developing relationships with large business
customers and key regulators on the state and
federal level; implementing scenarios based
resource planning; and implementing activity
based costing with a process focus to improve
efficiency and productivity.
With respect to long-term compensation, in 2008 each of the other named executive officers
received annual grants of restricted stock units and performance shares in accordance with their
pre-established targets. The table below describes those grants, as well as transitional performance
share grants that the Committee issued in 2007.
Named Executive
Officer
Restricted
Stock Units Vesting in
1/3 Increments in 2009,
2010 and 2011
Transitional
Performance
Shares
Vesting 2008
Transitional
Performance
Shares
Vesting 2009
Performance
Shares
Vesting 2010
John R. McArthur 4,491 8,863 8,863 8,863
Jeffrey J. Lyash 4,790 9,535 9,535 9,535
Lloyd M. Yates 4,790 9,535 9,535 9,535
As described in the “Performance Shares” discussion of the “LONG-TERM INCENTIVES” section
on page 26 above, the one-time grants of transitional performance shares were issued by the Committee to
address the ineffectiveness of the former long-term incentive plan. The significant decrease in year-over-year
total compensation to Messrs. McArthur and Lyash for 2008, as compared to 2007, as noted in the “Summary
Compensation Table” on page 40 of this Proxy Statement, was largely due to the expensing impacts pursuant
to SFAS No. 123(R) of the one-time transitional performance share grants for the applicable officers as set
forth in the table above. The increase in year-over-year total compensation to Mr. Yates for 2008, as compared
to 2007, as noted in the “Summary Compensation Table” on page 40 of this Proxy Statement, was largely due
to Mr. Yates becoming vested in the SERP in 2008.