Progress Energy 2009 Annual Report Download - page 185

Progress Energy Proxy Statement
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travel, home security, and Internet and telecom access. During 2009, the Company required Mr. Lyash to relocate from Florida to
North Carolina in connection with his becoming the Company’s Executive Vice President - Corporate Development. Mr. Lyash
received standard Company relocation benefits totaling $53,005 that included travel expenses, the equivalent of one month’s
salary, temporary housing, shipment of household goods, and closing costs in connection with his purchase of a home in North
Carolina. Mr. Lyash also received assistance with the sale of his home in Florida where the Company previously required Mr.
Lyash to relocate in connection with his former role as President and Chief Executive Officer of Progress Florida, Inc. The
Company purchased his Florida home at a price equal to the average of two independent appraisals after he was unable to sell
the home within a 60-day marketing period. The Company agreed that if the purchase price of Mr. Lyash’s Florida home, as
determined by the average of the two independent appraisals, resulted in a loss on the sale of his prior home, the Company
would pay Mr. Lyash the difference between the price he paid for the Florida home (excluding the cost of improvements made
subsequent to such purchase) and the purchase price paid by the Company based on the independent appraisals. Because of
the precipitous decline in the Florida housing market since Mr. Lyash’s purchase of his Florida home, the agreed purchase
price was significantly below Mr. Lyash’s purchase price. SEC rules require that we include as fiscal year 2009 compensation
this difference, which was $80,000, along with other transaction costs. In light of the fact that the relocation was required by
the Company and because this make-whole amount paid to Mr. Lyash will be treated as income to him, we agreed to provide
Mr. Lyash with a tax gross-up on amounts from this transaction that are considered taxable income. The tax gross-up was
$42,569. In approving Mr. Lyash’s relocation expenses, including the reimbursement of the loss incurred on his Florida home, the
Committee required Mr. Lyash to agree to reimburse the Company for the relocation assistance in the event he voluntarily leaves
the Company within three years of relocating to North Carolina.
17 Includes (i) the grant date fair value of the restricted stock units granted during 2009 under the 2007 Equity Incentive
Plan, $284,055; and (ii) the grant date fair value of the performance shares granted during 2009 under the 2009 PSSP, $436,628.
The maximum potential for the performance shares granted to Mr. Yates in 2009 is $873,257 (200%), based on the March 17,
2009 closing stock price of $33.80.
18 Includes changes in present value of the accrued benefit during 2009 for the following plans: Progress Energy
Pension Plan: $33,106; and the SERP: $275,709. Mr. Yates’ change in SERP decreased in 2009 primarily due to vesting of the
total accumulated benefit that occurred in 2008.
19 Consists of (i) $14,700 in Company contributions under the Progress Energy 401(k) Savings & Stock Ownership
Plan; (ii) $11,956 in deferred compensation credits pursuant to the terms of the Management Deferred Compensation Plan;
(iii) $70,986 in Restricted Stock/Unit Dividends; (iv) $4,026 in tax gross-ups related to imputed income; and (v) $17,764 in
perquisites including financial/estate/tax planning, $10,000, and spousal use of Company aircraft, $4,920. Other perquisites
include luncheon club membership, health club dues, home security, Internet and telecom access, executive physical and AD&D
insurance.
20 Includes (i) the grant date fair value of the restricted stock units granted during 2009 under the 2007 Equity Incentive
Plan, $224,500; and (ii) the grant date fair value of the performance shares granted during 2009 under the 2009 PSSP, $313,833.
The maximum potential for the performance shares granted to Ms. Sims in 2009 is $627,666 (200%), based on the March 17,
2009 closing stock price of $33.80.
21 Includes changes in present value of the accrued benefit during 2009 for the following plans: Progress Energy
Pension Plan: $30,117; and the SERP: $703,105. Ms. Sims became vested in the SERP on June 1, 2009 which attributed to her
increase for the year. Ms. Sims’ accumulated Restoration Plan benefit of $25,420 was forfeited upon her vesting in the SERP.
22 Consists of (i) $14,700 in Company contributions under the Progress Energy 401(k) Savings & Stock Ownership
Plan; (ii) $7,500 in deferred compensation credits pursuant to the terms of the Management Deferred Compensation Plan;
(iii) $47,759 in Restricted Stock/Unit Dividends; (iv) $15,188 in tax gross-ups related to imputed income; and (v) $12,358 in
stock purchase discounts for annual incentive deferrals pursuant to the MICP. The total value of the perquisites and personal
benefits received by Ms. Sims was less than $10,000. Thus, these amounts are excluded from column (i).