ALLETE Executive Long-Term Incentive Compensation Plan Performance Share Grant (2008)

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines the terms for performance share awards to eligible executive employees of ALLETE under the 2008 Long-Term Incentive Compensation Plan. The number of shares awarded depends on ALLETE’s Total Shareholder Return (TSR) ranking over a three-year period compared to a group of 16 peer companies. Executives can earn between 0% and 200% of their grant based on ALLETE’s relative TSR performance, with specific payout percentages tied to ranking positions. No shares are awarded if performance falls below the threshold ranking.

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EX-10.(M)10 5 exhibit_10m10.htm ALLETE EXECUTIVE LONG-TERM INCENTIVE COMPENSATION PLAN EFFECTIVE 2008 exhibit_10m10.htm
 
Exhibit 10(m)10
 
ALLETE 2007 Form 10-K
ANNEX B
TO
ALLETE
EXECUTIVE LONG TERM INCENTIVE COMPENSATION PLAN
PERFORMANCE SHARE GRANT
Effective 2008
[Eligible Executive Employees]


Financial Measure:

Total Shareholder Return (TSR) computed over the three-year period.

Performance Share Award:

If ALLETE’s TSR ranking is 3rd or higher among a peer group of 16 companies (superior performance), 200% of the Performance Share Grant will be earned.  If ALLETE’s TSR performance ranks 9th among the peer group (target performance), 100% of the Grant will be earned.  If ALLETE’s TSR performance ranks 12th (threshold performance), 50% of the Grant will be earned.  If TSR performance is below threshold, no Performance Shares will be earned.  Straight-line interpolation will be used to determine earned awards based on the TSR ranking between threshold, target and superior.


 
TSR Rank
Perf. Level
Payout %
       
 
1
  
200.0%
 
2
  
200.0%
 
3
Superior
200.0%
 
4
  
183.3%
 
5
  
166.7%
 
6
  
150.0%
 
7
  
133.3%
 
8
  
116.7%
 
9
Target
100.0%
 
10
  
83.3%
 
11
  
66.7%
 
12
Threshold
50.0%
 
13
  
0%
 
14
  
0%
 
15
  
0%
 
16
  
0%
 
17
  
0%