Progress Energy 2008 Annual Report Download - page 198

PROXY STATEMENT
62
POTENTIAL PAYMENTS UPON TERMINATION
John R. McArthur, Executive Vice President
Voluntary
Termination
($)
Early
Retirement
($)
Normal
Retirement
($)
Involuntary
Not for
Cause
Termination
($)
For Cause
Termination
($)
Involuntary
or Good
Reason
Termination
(CIC)
($)
Death or
Disability
($)
Compensation
Base Salary—$480,000 1$0 $0 $0 $1,435,200 $0 $2,260,000 $0
Annual Incentive 2$0 $0 $0 $0 $0 $264,000 $250,000
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 $388,856 $388,856
2007 (performance period) 4 $0 $0 $0 $0 $0 $388,856 $388,856
2008 (performance period) 4$0 $0 $0 $0 $0 $374,231 $102,063
Restricted Stock Units 5
2007 – 2010
(grant date vesting) $0 $0 $0 $0 $0 $58,858 $58,858
2007 – 2011
(grant date vesting) $0 $0 $0 $0 $0 $58,858 $58,858
2007 – 2012
(grant date vesting) $0 $0 $0 $0 $0 $58,898 $58,898
2007 Retention Grant
(grant date vesting) $0 $0 $0 $0 $0 $358,650 $358,650
2008-2009
(grant date vesting) $0 $0 $0 $0 $0 $59,655 $0
2008-2010
(grant date vesting) $0 $0 $0 $0 $0 $59,655 $0
2008-2011
(grant date vesting) $0 $0 $0 $0 $0 $59,655 $0
Restricted Stock 6
Unvested and Accelerated $0 $0 $0 $0 $0 $365,305 $365,305
Benefits and Perquisites
Incremental Non
Qualified Pension 7$0 $0 $0 $0 $0 $1,225,262 $0
Deferred Compensation 8$71,838 $0 $0 $71,838 $71,838 $71,838 $71,838
Post-retirement Health Care 9$0 $0 $0 $22,494 $0 $44,105 $0
Split-Dollar Policy 10 $5,000 $0 $0 $5,000 $5,000 $63,149 $789,383
Executive AD&D Proceeds 11 $0 $0 $0 $0 $0 $0 $500,000
280G Tax Gross-up 12 $0 $0 $0 $0 $0 $2,162,892 $0
TOTAL $76,838 $0 $0 $1,534,532 $76,838 $8,322,727 $3,391,567
1 There is no provision for payment of salary under voluntary termination, for cause termination, death or
disability. Mr. McArthur is not eligible for early retirement or normal retirement. In the event of involuntary not for cause
termination, salary continuation provision per Mr. McArthur’s employment agreement requires a severance equal to 2.99
times his then current base salary ($480,000) 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 (($480,000 + $273,333) x 3). Does not include impact of long-term disability. In the event of a long-
term disability, Mr. McArthur 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. McArthur is not eligible for early retirement or normal retirement. In the event of
involuntary or good reason termination (CIC), Mr. McArthur would receive 100% of his target bonus under the Annual Cash
Incentive Compensation Plan provisions of the Management Change-in-Control Plan, calculated as 55% times $480,000.
In the event of death or disability, Mr. McArthur 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. McArthur’s MICP award was $250,000.
3 For the 2006 performance shares grant, the expected payout as of December 31, 2008 was 0%.