Summary of Key Terms of Compensation Arrangements with MidAmerican Energy Holdings Company Named Executive Officers and Directors

Summary

This document outlines the compensation arrangements for the named executive officers and directors of MidAmerican Energy Holdings Company. The officers receive an annual base salary, health insurance, and other standard benefits. They are eligible for discretionary annual cash awards under the Performance Incentive Plan and, for some, additional long-term incentive awards. Directors who are also employees do not receive extra compensation for board service, and other directors receive no compensation. The agreement specifies the base salaries for each executive for the fiscal year ending December 31, 2007.

EX-10.27 2 exh10-27.htm SUMMARY OF KEY TERMS OF COMPENSATION Summary of Key Terms of Compensation


 
EXHIBIT 10.27


SUMMARY OF KEY TERMS OF COMPENSATION ARRANGEMENTS
WITH MIDAMERICAN ENERGY HOLDINGS COMPANY
NAMED EXECUTIVE OFFICERS and directors

MidAmerican Energy Holding Company’s (“MEHC”) continuing named executive officers each receive an annual base salary and participate in health insurance and other benefit plans on the same basis as other employees, as well as certain other compensation and benefit plans described in MEHC’s Annual Report on Form 10-K.

The named executive officers are also eligible to receive a cash incentive award under MEHC’s Performance Incentive Plan (“PIP”). The PIP provides for a discretionary annual cash award that is determined on a subjective basis and paid prior to year-end. In addition to the PIP, the named executive officers are eligible to receive discretionary cash performance awards periodically during the year to reward the accomplishment of significant non-recurring tasks or projects. Messrs. David L. Sokol and Gregory E. Abel have not been granted cash performance awards in the past five years. Messrs. Patrick J. Goodman, Douglas L. Anderson and Ms. Maureen E. Sammon are participants in MEHC’s Long-Term Incentive Partnership Plan (“LTIP”). Messrs. David L. Sokol and Gregory E. Abel do not participate in the LTIP. A copy of the LTIP is attached as Exhibit 10.71 to the MidAmerican Annual Report on Form 10-K for the year ended December 31, 2004, and incorporated by reference herein. Base salary for continuing named executive officers for MEHC’s fiscal year ending December 31, 2007, is shown in the following table:

 
Name and Title
 
 
Base Salary
 
 
David L. Sokol
Chairman and Chief Executive Officer
 
$
850,000
 
 
Gregory E. Abel
President and Chief Operating Officer
 
$
775,000
 
 
Patrick J. Goodman
Senior Vice President and Chief Financial Officer
 
$
320,000
 
 
Douglas L. Anderson
Senior Vice President and General Counsel
 
$
291,500
 
 
Maureen E. Sammon
Senior Vice President, Human Resources, Information Technology and Insurance
 
$
191,000
 

Messrs. David L. Sokol and Gregory E. Abel are directors of MEHC, but do not receive additional compensation for their service as directors other than what they receive as employees of MEHC. The other members of the MEHC board of directors do not receive compensation for their service as directors.