Progress Energy 2008 Annual Report Download - page 193

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Progress Energy Proxy Statement
57
POTENTIAL PAYMENTS UPON TERMINATION
William D. Johnson, Chairman, Chief Executive Officer, and President
Voluntary
Termination
($)
Early
Retirement13
($)
Normal
Retirement
($)
Involuntary
Not for
Cause
Termination
($)
For Cause
Termination
($)
Involuntary
or Good
Reason
Termination
(CIC)
($)
Death or
Disability
($)
Compensation
Base Salary—$950,000 1$0 $0 $0 $2,840,500 $0 $5,288,500 $0
Annual Incentive 2$0 $0 $0 $0 $0 $807,500 $929,000
Long-term Incentives
Performance Shares (PSSP)
2006 (performance period) 3 $0 $0 $0 $0 $0 $0 $0
2007 2-yr Transitional Grant 4$0 $0 $0 $0 $0 $1,292,336 $1,292,336
2007 (performance period) 4$0 $0 $0 $0 $0 $1,292,336 $1,292,336
2008 (performance period) 4$0 $0 $0 $0 $0 $1,904,232 $634,744
Restricted Stock Units 5
2007 – 2010
(grant date vesting) $0 $0 $0 $0 $0 $196,700 $196,700
2007 – 2011
(grant date vesting) $0 $0 $0 $0 $0 $196,700 $196,700
2007 – 2012
(grant date vesting) $0 $0 $0 $0 $0 $196,700 $196,700
2008 – 2009
(grant date vesting) $0 $0 $0 $0 $0 $304,853 $0
2008 – 2010
(grant date vesting) $0 $0 $0 $0 $0 $304,853 $0
2008 – 2011
(grant date vesting) $0 $0 $0 $0 $0 $304,892 $0
Restricted Stock 6
Unvested and Accelerated $0 $0 $0 $0 $0 $1,240,690 $1,240,690
Benefits and Perquisites
Incremental Non-Qualified
Pension 7$0 $0 $0 $0 $0 $0 $0
Deferred Compensation 8$616,137 $0 $0 $616,137 $616,137 $616,137 $616,137
Post-retirement
Health Care 9$0 $0 $0 $22,936 $0 $44,972 $0
Split-Dollar Policy 10 $150,914 $0 $0 $150,914 $150,914 $133,500 $1,140,938
Executive AD&D Proceeds 11 $0 $0 $0 $0 $0 $0 $500,000
280G Tax Gross-up 12 $0 $0 $0 $0 $0 $4,263,228 $0
TOTAL $767,051 $0 $0 $3,630,487 $767,051 $18,388,125 $8,235,739
1 There is no provision for payment of salary under voluntary termination, for cause termination, death or
disability. Mr. Johnson is not eligible for early retirement or normal retirement (see footnote 13 below). In the event of
involuntary not for cause termination, salary continuation provision per Mr. Johnson’s employment agreement requires a
severance equal to 2.99 times his then current base salary ($950,000) payable in equal installments over a period of 2.99 years.
In the event of involuntary or good reason termination (CIC), the maximum benefit allowed under the cash payment provision
of the Management Change-in-Control Plan equals the sum of annual salary times three plus average MICP award for the three
years prior times three (($950,000 + $812,833) x 3). Does not include impact of long-term disability. In the event of a long-
term disability, Mr. Johnson would receive 60% of base salary during the period of his disability.
2 There is no provision for payment of annual incentive under voluntary termination, involuntary not for cause
termination, or for cause termination. Mr. Johnson is not eligible for early retirement or normal retirement (see footnote 13
below). In the event of involuntary or good reason termination (CIC), Mr. Johnson would receive 100% of his target bonus
under the Annual Cash Incentive Compensation Plan provisions of the Management Change-in-Control Plan, calculated as
85% times $950,000. In the event of death or disability, Mr. Johnson would receive a pro-rata incentive award for the period
worked during the year. For December 31, 2008, this is based on the full award. For 2008, Mr. Johnson’s MICP award was
$929,000.