Windstream 2006 Annual Report Download - page 31

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The following table shows information regarding the exercise or vesting of equity-based awards of
Valor or Windstream during 2006 by the individuals named below.
OPTION EXERCISES AND STOCK VESTED
Option Awards (1) Stock Awards (1)
Name
Number of Shares
Acquired on Exercise
(#)
Value Realized on
Exercise
($)
Number of Shares
Acquired on Vesting
(#)
Value Realized on
Vesting
($)
Jeffery R. Gardner ----
Brent Whittington ----
Francis X. Frantz ----
Keith D. Paglusch ----
John P. Fletcher ----
John J. Mueller - - 165,501 (2)
331,002 (3)
1,886,711
3,806,523
Jerry E. Vaughn - - 22,596 (2)
338,937 (3)
257,594
3,897,776
William M. Ojile, Jr. - - 62,523 (2)
125,045 (3)
712,762
1,438,018
William G. Raney - - 73,556 (2)
73,556 (3)
838,538
845,894
(1) Does not include exercises of stock options or the accelerated vesting of restricted stock during 2006 with
respect to Alltel common stock for Messrs. Frantz, Gardner or Whittington. Any options exercised or restricted
stock accelerated during 2006 with respect to such individuals were granted by Alltel prior to 2006 as part of
Alltel’s long-term compensation and before such individuals became employed by Spinco.
(2) Shares vested on January 1, 2006 with a closing price of $11.40.
(3) Shares vested on July 17, 2006 with a closing price of $11.50.
Pension Benefits
The following is a brief summary of the material terms of the retirement plans maintained by
Windstream.
Windstream Pension Plan. Windstream created the Windstream Pension Plan (“Pension Plan”), which is
a tax-qualified defined benefit plan, as a mirror plan to the Alltel Corporation Pension Plan as part of the spin-
off. Windstream was required to create the Pension Plan pursuant to the Employee Benefits Agreement with
Alltel, and Windstream received $850 million in assets from Alltel to support the obligations assumed by
Windstream under the Pension Plan. The Pension Plan generally covers salaried and non-salaried employees of
Windstream and those subsidiary companies that have adopted the Pension Plan. For non-bargaining employees,
the Pension Plan was closed to new participants as of December 31, 2005 and frozen to additional accruals as of
December 31, 2005 (December 31, 2010 for employees who had attained age 40 with two years of service as of
December 31, 2005). Of our named executive officers, only Messrs. Gardner and Frantz were eligible for
continuing accruals under the Pension Plan as of the end of 2006.
The Pension Plan’s accrued benefit is payable in the form of a monthly life annuity following normal
retirement at age 65 (or, if later, five years of service or fifth anniversary of participation). The accrued benefit is
also payable in a monthly life annuity following early retirement at or after age 55 with at least 20 years of
service (with reduction in the life annuity of 0.25% for each month that commencement precedes age 60) or at or
27