Progress Energy 2009 Annual Report Download - page 180

PROXY STATEMENT
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In recognition of the achievements he accomplished in 2009 and on Mr. Johnson’s recommendation, the
Committee awarded Mr. Mulhern an MICP payout of $225,000, which is equal to 99% of Mr. Mulhern’s target
award. Mr. Mulhern’s award was due in part to his leadership in the Company achieving its EPS goal, execution of a
funding strategy for the pension plan, and obtaining interim rate relief for PEF.
With respect to his long-term incentive compensation, in 2009, Mr. Mulhern was granted 5,604 restricted
stock units and 11,304 performance shares in accordance with his pre-established targets of 58% and 117%,
respectively, of base salary. The performance shares are earned based on performance over the three years ending
December 31, 2011. Additionally, 7,131 shares of the 2007 annual grant vested in 2009 and were paid out at 100%
of target. On Mr. Johnson’s recommendation, the Committee also issued to Mr. Mulhern an ad hoc retention grant
of 2,500 restricted stock units to recognize his leadership in the critical position of Chief Financial Officer, his
outstanding performance against objectives and the manner in which he achieved those objectives. The decrease
in year-over-year total compensation to Mr. Mulhern for 2009, as compared to 2008, as noted in the “Summary
Compensation Table” on page 45 of this Proxy Statement, was largely due to vesting of the total accumulated SERP
benefit that occurred in 2008.
Compensation of Other Named Executive Officers
For 2009, Mr. Johnson recommended and the Committee approved base salaries for Messrs. Lyash and
Yates of $453,000 and $448,000, respectively. The base salaries for Messrs. Lyash and Yates represented an increase
of approximately 1.80% and 1.82%, respectively, above their 2008 salaries. The new base salaries are set at 9%
below the 50th percentile of the market. The modest year-over-year increase to Mr. Lyash’s and Mr. Yates’ salaries
reflects the Committee’s and management’s recognition of the challenging economic and regulatory environment.
It is the Committee’s intention to increase Messrs. Lyash’s and Yates’ salaries over time to a level that is at the 50th
percentile of the Benchmarking Peer Group.
For 2009, Mr. Johnson recommended and the Committee approved Ms. Sims’ base salary to remain at
$370,000. The 2009 base salary is set at 11% above the 50th percentile of the Benchmarking Peer Group due to
Ms. Sims’ extensive knowledge of fuel and power operations.
Mr. Lyash received standard assistance with relocation expenses in connection with the Company’s
requirement that he relocate from Florida to North Carolina to assume his current position. Mr. Lyash also received
assistance with the sale of his Florida home. For more information, see note 16 to the “Summary Compensation
Table” on page 45.