Progress Energy 2009 Annual Report Download - page 179

Progress Energy Proxy Statement
41
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In recognition of his accomplishments during 2009, including his leadership in achieving the Company
Performance described above, the Committee awarded Mr. Johnson an MICP payout of $950,000, which is equal to
114% of Mr. Johnson’s target award. The Committee also considered Mr. Johnson’s emphasis on specific leadership
behaviors and expectations throughout the year which were communicated to the Company’s management team
in clear and direct terms. The Committee also noted Mr. Johnson’s active leadership in key national industry
organizations, including frequent, direct engagement with policymakers and regulators at the federal and state levels.
With respect to his long-term incentive compensation during 2009, Mr. Johnson was granted 27,892
restricted stock units and 55,546 performance shares in accordance with his pre-established targets of 117% and
233%, respectively, of his base salary. The performance shares are earned based on performance over the three years
ending December 31, 2011. Additionally, 29,456 shares of the 2007 annual grant vested in 2009 and were paid out
at 100% of target. The Committee also issued to Mr. Johnson an ad hoc retention grant of 8,000 restricted stock
units to recognize his leadership in the critical position of Chief Executive Officer, outstanding performance against
objectives and the manner in which he achieved those objectives. Total year-over-year compensation to Mr. Johnson
for 2009, as compared to 2008, as noted in the “Summary Compensation Table” on page 45 of this Proxy Statement,
was relatively flat.
Chief Financial Officer Compensation
Mark F. Mulhern
In March 2009, Mr. Johnson recommended and the Committee approved a base salary of $425,000 for
Mr. Mulhern, representing a 10.4% increase to his previous salary of $385,000. The new base salary was set at 20%
below the 50th percentile of the Benchmarking Peer Group. Mr. Mulhern’s base salary was established at this level
due to his relatively short tenure in the Chief Financial Officer position, and more significantly, the challenging
economic and regulatory environment. It is the Committee’s intention to increase Mr. Mulhern’s salary over time to
a level that is at the 50th percentile of the Benchmarking Peer Group.
For 2009, Mr. Mulhern’s MICP target award was set at 55% of his base salary. This target award is the
same target Mr. Mulhern had in 2008 after he assumed the Chief Financial Officer position and represents a target
award opportunity that is below the 50th percentile of the market. Mr. Mulhern’s performance goals for 2009 focused
on the following general areas of Company success:
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