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Quotes & Info
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| DTE > SEC Filings for DTE > Form 8-K on 4-Mar-2009 | All Recent SEC Filings |
4-Mar-2009
Change in Directors or Principal Officers
Annual Incentive Plan
On February 26, 2009, the Organization and Compensation Committee of the DTE
Energy Company ("Company" or "DTE Energy") Board of Directors approved 2009
performance measures and targets for Anthony F. Earley Jr., David E. Meador,
Gerard M. Anderson, Gerardo Norcia and Bruce D. Peterson under the Company's
Annual Incentive Plan ("AIP"). These named executive officers and other
executives may receive cash awards under the AIP. The following table summarizes
the annual measures for 2009 under the AIP for Messrs. Earley, Meador, Anderson
and Peterson in determining their total annual incentive award:
Measures Weight
DTE Energy Operating Earnings Per Share 30 %
DTE Energy Cash Flow 30 %
Customer Satisfaction Percentile Ranking 10 %
Michigan Public Service Commission ("MPSC") Complaints 10 %
Safety 10 %
Diversity Hiring 10 %
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The following table summarizes the annual measures for 2009 under the AIP for Mr. Norcia in determining his total annual incentive award:
Measures Weight
Michigan Consolidated Gas Company ("MichCon") Operating Net Income 14 %
MichCon Cash Flow 14 %
Customer Satisfaction Percentile Ranking 10.5 %
MPSC Complaints 10.5 %
Safety 7 %
Diversity Hiring 7 %
Gas Storage & Pipeline Businesses ("GSP") Operating Net Income 12 %
GSP Cash Flow 7.5 %
GSP New Project Development 7.5 %
DTE Energy Operating Earnings Per Share 10 %
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Based on market comparisons, each officer position is assigned a target award
expressed as a percentage of base salary. Targets for these officers range from
60% to 100%, including the Chief Executive Officer. Award amounts paid to each
officer are determined as follows: (1) the executive's most recent year-end base
salary is multiplied by an AIP target percentage to arrive at the target award;
(2) the overall performance payout percentage, which can range from 0% to 175%,
is determined based on final results compared to threshold, target and maximum
levels for each objective; (3) the target award is then multiplied by the
performance payout percentage to arrive at the calculated award; and (4) the
calculated award is then adjusted by an individual performance modifier
(assessment of an individual executive's achievements for the year), which can
range from 0% to 150%, to arrive at the final award.
Long-Term Incentive Plan
On February 26, 2009, the Organization and Compensation Committee of the
Company's Board of Directors approved 2009 performance measures and targets for
executive officers under the DTE Energy Company 2006 Long Term Incentive Plan
("LTIP"). The LTIP, which was approved by our shareholders, rewards long-term
growth and profitability by providing a vehicle through which officers, other
key employees and outside directors may receive stock-based compensation.
Stock-based compensation directly links individual performance with shareholder
interests. Based on market comparisons, each officer position is assigned a
target award expressed as a percentage of base salary. The target award may be
modified by the Organization and Compensation Committee and is then delivered in
the form of restricted stock, stock options and performance shares. Targets for
these officers range from 115% to 300%, including the Chief Executive Officer.
Performance shares: Performance shares entitle the executive to receive a
specified number of shares, or a cash payment equal to the fair market value of
the shares, or a combination thereof, depending on the level of achievement of
performance measures. The performance measurement period for the 2009 award is
January 1, 2009 through December 31, 2011. Payments earned under the 2009 award
can range from 0% to 200% of target, based upon achievement of three performance
measures. The three measures and weightings for Messrs. Earley, Meador,
Anderson, and Peterson are: (1) balance sheet health (40%), (2) total
shareholder return vs. total shareholder return of peer group companies (40%),
and (3) employee engagement (20%). The three measures and weightings for Mr.
Norcia are: (1) balance sheet health (20%), (2) total shareholder return vs.
total shareholder return of peer group companies (40%), and (3) MichCon 3 year
average return on equity (40%).
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