Progress Energy 2009 Annual Report Download - page 175

Progress Energy Proxy Statement
37
The following table sets forth the key provisions of the CIC Plan benefits as it relates to our named
executive officers:
Tier I Tier II
Eligible Positions
Chief Executive Officer,
Chief Operating Officer,
Presidents and Executive
Vice Presidents
Senior Vice Presidents
Cash Severance 300% of base salary and
annual incentive1
200% of base salary and
annual incentive1
Health & Welfare Coverage Period Coverage up to 36 months Coverage up to 24 months
Gross-ups Full gross-up of excise tax Conditional gross-up of excise tax
1 The cash severance payment will be equal to the sum of the applicable percentage of annual base salary and the
greater of the average of the participant’s annual incentive award for the three years immediately preceding the participant’s
employment termination date, or the participant’s target annual incentive award for the year the participant’s employment with
the Company terminates.
Additionally, the following benefits are potentially available to named executive officers upon a CIC.
Benefit Description
Annual Incentive 100% of target incentive in year of CIC
Restricted Stock
Agreements Restrictions are fully waived on all outstanding grants upon termination
Performance Share
Sub-Plan Outstanding awards vest as of the termination date
Stock Option Agreements Rights dependent upon whether option has been assumed by successor
Supplemental Senior
Executive Retirement Plan
Participant shall be deemed to have met minimum service requirements for benefit
purposes, and participant shall be entitled to payment of benefit under the SERP
Deferred Compensation Entitled to payment of accrued benefits in all accrued nonqualified deferred
compensation plans
Split-Dollar Life
Insurance Policies1
We pay all premiums due under a split-dollar life insurance arrangement under
which the terminated participant is the insured for a period not to exceed the
applicable period of either 36 (Tier I) or 24 (Tier II) months
1Prior to 2003, we sponsored an executive split-dollar life insurance program. The plan provided life insurance
coverage approximately equal to three times salary for executive officers. During 2003, we discontinued our executive
split-dollar program for all future executives and discontinued our payment of premiums on existing split-dollar policies for
senior executives in response to the Internal Revenue Service’s final split-dollar regulations and the Sarbanes-Oxley Act of 2002.
In 2008 the Committee authorized the Chief Executive Officer to terminate the executive split-dollar program. The Plan was
terminated effective January 1, 2009. All named executive officers surrendered their policies for cash value. Surrender proceeds
were issued in January 2009.
In the event of a change-in-control of the Company, each named executive officer can receive the greater of
benefits provided under the CIC Plan or severance benefits provided under his employment agreement, but not both.
The tables captioned “Potential Payments Upon Termination,” on pages 59 through 68 below show the potential
payments each of our named executive officers would receive in the event of a CIC.