Windstream 2007 Annual Report Download - page 27

(7) Shares vest ratably in annual one-third (1/3) increments over the three-year period ending February 15,
2010.
(8) Shares vest in full on November 15, 2010.
The following table shows information regarding the exercise or vesting of equity-based awards of
Windstream during 2007 by the individuals named below.
OPTION EXERCISES AND STOCK VESTED
Option Awards Stock Awards
Name
Number of Shares
Acquired on Exercise
(#)
Value Realized on
Exercise
($)
Number of Shares
Acquired on Vesting
(#) (1)
Value Realized on
Vesting
($)
Jeffery R. Gardner -0- -0- 200,103 2,773,428
Brent Whittington -0- -0- 16,120 223,423
John P. Fletcher -0- -0- 12,566 174,165
Robert G. Clancy -0- -0- 6,976 96,687
Susan Bradley -0- -0- 8,666 120,111
Keith D. Paglusch -0- -0- 13,228 183,340
(1) Shares vested on August 1, 2007 with a closing price of $13.86.
Pension Benefits
The following is a brief summary of the material terms of the retirement plans maintained by Windstream.
Windstream Pension Plan. Windstream maintains the Windstream Pension Plan (“Pension Plan”),
which is a tax-qualified defined benefit plan. The Pension Plan generally covers salaried and non-salaried
employees of Windstream and those subsidiary companies that have adopted the Pension Plan. Accruals are
frozen for non-bargaining employees except for those employees who attained age 40 with two years of vesting
service as of December 31, 2005. Of our named executive officers, only Messrs. Gardner and Clancy and
Ms. Bradley were eligible for continuing accruals under the Pension Plan as of the end of 2007.
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, at five years of service or at the 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 after age 60 with 15 years of service (with reduction in the life annuity of 0.25% for each month that
commencement precedes age 65 for a participant whose benefit commences before age 62). As of the end of
2007, of the named executive officers, only Ms. Bradley satisfied the foregoing age and service requirements to
commence receipt of an early retirement benefit under the Pension Plan.
For deferred vested participants (i.e. those who terminate employment before early retirement), the
accrued benefit is payable in a monthly life annuity beginning at normal retirement age. If a deferred vested
participant has 15 years of service, the accrued benefit is also payable in a monthly life annuity beginning as
early as age 60 (with reduction in the life annuity of 0.50% for each month commencement precedes age 65),
and, if the deferred vested participant has at least 20 years of service, the accrued benefit is also payable in a
monthly life annuity beginning as early as age 55 (with reduction in the life annuity of 0.50% for each month
commencement precedes age 65).
For a participant eligible for normal retirement or early retirement, payment is also available in actuarial
equivalent joint and surviving spouse annuities, which provide a reduced monthly amount for the participant’s
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