Allegheny Pennsylvania Long Term Incentive Program for Senior Management

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• County: Allegheny
• Control #: US-CC-20-162L
• Format: Word; Rich Text

Description

20-162L 20-162L . . . Long Term Incentive Program For Senior Management under which Compensation Committee may award (a) stock appreciation rights and (b) performance share units. Performance share units entitle holder to receive cash payment equal to (i) average market price of one share of corporation common stock during December ("Measuring Month") in third calendar year following year in which award is made, plus (ii) aggregate dividends with respect to one share of corporation common stock from January 1 of year in which award is made until last day of Measuring Month. At maturity, number of units initially awarded shall be (i) multiplied by fraction that corresponds to average annual percentage increase or decrease in book value per share of corporation common stock over four year period prior to maturity, and (ii) then further adjusted based on ratio of market value of corporation common stock to its book value as compared to that of comparable electric utility companies The Allegheny Pennsylvania Long Term Incentive Program for Senior Management is a strategic initiative implemented to motivate and reward senior executives within the organization by providing them with attractive long-term incentives. This program aims to attract and retain top talent, align senior management's interests with shareholders, and drive sustained business growth. The Allegheny Pennsylvania Long Term Incentive Program offers various types of incentives, each tailored to meet the objectives of both the organization and its senior management. These incentives may include: 1. Stock Options: Senior executives are granted the option to purchase company shares at a predetermined price (the strike price) within a specified period. This allows them to benefit from any increase in the company's stock price over time, thus directly linking their rewards to the organization's performance. 2. Restricted Stock Units (RSS): Executives are awarded RSS, which represent the promise of receiving a certain number of company shares upon meeting specific performance targets or remaining with the organization for a predetermined length of time. RSS align the interests of senior management with long-term company success. 3. Performance Share Units (Plus): Plus are granted to senior executives based on the achievement of predetermined performance metrics, such as revenue growth, profitability, or shareholder returns. These units provide a direct link between executive compensation and the organization's overall performance. 4. Cash-Based Incentives: In addition to equity-based incentives, the program may also offer cash bonuses tied to specific performance goals or milestones. These cash-based rewards provide more immediate gratification to senior executives while maintaining alignment with long-term business objectives. The Allegheny Pennsylvania Long Term Incentive Program for Senior Management aims to create a culture of accountability, performance excellence, and long-term value creation. By offering a variety of incentives, the program ensures that executives are motivated to make strategic decisions and drive the organization's financial success. Ultimately, this initiative helps Allegheny Pennsylvania attract, retain, and reward top talent, while also fostering sustained growth and value for its shareholders.

The Allegheny Pennsylvania Long Term Incentive Program for Senior Management is a strategic initiative implemented to motivate and reward senior executives within the organization by providing them with attractive long-term incentives. This program aims to attract and retain top talent, align senior management's interests with shareholders, and drive sustained business growth. The Allegheny Pennsylvania Long Term Incentive Program offers various types of incentives, each tailored to meet the objectives of both the organization and its senior management. These incentives may include: 1. Stock Options: Senior executives are granted the option to purchase company shares at a predetermined price (the strike price) within a specified period. This allows them to benefit from any increase in the company's stock price over time, thus directly linking their rewards to the organization's performance. 2. Restricted Stock Units (RSS): Executives are awarded RSS, which represent the promise of receiving a certain number of company shares upon meeting specific performance targets or remaining with the organization for a predetermined length of time. RSS align the interests of senior management with long-term company success. 3. Performance Share Units (Plus): Plus are granted to senior executives based on the achievement of predetermined performance metrics, such as revenue growth, profitability, or shareholder returns. These units provide a direct link between executive compensation and the organization's overall performance. 4. Cash-Based Incentives: In addition to equity-based incentives, the program may also offer cash bonuses tied to specific performance goals or milestones. These cash-based rewards provide more immediate gratification to senior executives while maintaining alignment with long-term business objectives. The Allegheny Pennsylvania Long Term Incentive Program for Senior Management aims to create a culture of accountability, performance excellence, and long-term value creation. By offering a variety of incentives, the program ensures that executives are motivated to make strategic decisions and drive the organization's financial success. Ultimately, this initiative helps Allegheny Pennsylvania attract, retain, and reward top talent, while also fostering sustained growth and value for its shareholders.