AVANGRID, Inc. Amended and Restated Executive Variable Pay Plan
Effective January 1, 2019
The objective of the AVANGRID, Inc. Amended and Restated Executive Variable Pay Plan (the Plan) is to provide executives of AVANGRID, Inc. (the Company) and its Affiliates (defined below) with the opportunity to earn annual incentive compensation through engagement in promoting the Companys objectives. Exceptional performance will further the future growth and success of the Company and enhance the linkage between employee, rate payer and shareholder interests. Incentive compensation under the Plan is linked to the attainment of specific, predetermined, quantifiable objectives (the Objectives) that reflect the Companys corporate interests, strategic objectives and, in some cases, individual business performance. It is intended that this Plan drive accountability for performance as well as teamwork.
The Plan consists of an Incentive Award payment calculated as a Target Incentive Award Percentage (defined in Section III.F), times the Incentive Factor (defined in Section III.G), times annualized base salary (prorated for less than a full year of participation) at the end of the Performance Period, adjusted by a cumulative Achievement Percentage (defined in Section III) based on the range of achievement from 0% to 100% at which weighted Objectives (defined in Section III) are achieved.
THE PLAN IS ESTABLISHED UNDER THE AVANGRID, INC. AMENDED AND RESTATED OMNIBUS INCENTIVE PLAN (THE OMNIBUS PLAN) AND IS SUBJECT TO ALL OF THE APPLICABLE TERMS AND CONDITIONS OF THE OMNIBUS PLAN.
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PERFORMANCE PERIOD AND EFFECTIVE DATE
The Performance Period is the period commencing January 1 and ending December 31 of the same calendar year for which performance is being measured. The Plan is effective as of January 1, 2019.
The Company, Business Area, Corporate Function, and Individual Business Objectives will be defined for each Performance Period; provided that each Objective shall be limited to the performance criteria (and permitted adjustments) set forth in the Omnibus Plan. For each of these sections, a certain number of Objectives will be set, typically no more than six (6). Each Objective will be assigned a relative weight within the section. Objective achievement will be subject to a linear model of assessment, with the range of achievement level from 0% to 100%.
To calculate an Incentive Award for a Participant, the Participants achievement percentage determined as provided in subsection D below will be multiplied by the relative weight for each Objective in subsection E below to produce a cumulative Achievement Percentage. The cumulative Achievement Percentage will be multiplied by the product of the Participants Target Incentive Award