Windstream 2011 Annual Report Download - page 48
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Please find page 48 of the 2011 Windstream annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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Federal Income Tax Consequences
The following is a brief summary of certain of the federal income tax consequences of certain
transactions under the Plan. This summary is not intended to be complete and does not describe state, local,
foreign or other tax consequences.
A participant in the Plan will be taxed at ordinary income rates on the amount of any cash payment
received pursuant to the Plan. The Plan is intended to comply with the requirements of Section 162(m) for
“performance-based compensation.” Generally, Windstream should be entitled to a federal income tax deduction
corresponding to the amount of income recognized by the participant in the Plan, provided, that, among other
things, payment (a) satisfies the “performance-based compensation” exception to Section 162(m) of the Code,
(b) meets the test of reasonableness, (c) is an ordinary and necessary business expense, and (d) is not an “excess
parachute payment” within the meaning of Section 280G of the Internal Revenue Code.
Plan Benefits
Future benefits to be received by a person or group under the Plan are not determinable at this time and
will depend on individual and corporate performance. Actual awards under the Plan to named executive officers
for 2011 are reported in this proxy statement in the “Non-Equity Incentive Plan Compensation” column of the
Summary Compensation Table.
Current Equity Compensation Plan Information
The following table sets forth information about our equity compensation plans as of December 31, 2011:
Equity Compensation Plan Information
Plan Category
Number of
securities to
be issued upon
exercise of
outstanding options,
warrants and rights
[a]
Weighted-average
exercise price of
outstanding options,
warrants and rights
[b]
Number of securities
remaining available for
future issuance under
equity compensation
plans [c] (excluding
securities reflected
in column [a])
Equity compensation plans not approved by
security holders
4,599,079 $7.90 3,407,228 (1)
Equity compensation plans approved by
security holders
-0- -0- 9,745,630 (2)
(1) The PAETEC Holding Corp. 2011 Omnibus Incentive Plan was approved by shareholders of PAETEC
Holding Corp. in 2011 but is reflected as not approved by shareholders because it was not approved by
shareholders of Windstream.
(2) The Windstream Corporation 2006 Amended and Restated Equity Incentive Plan.
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