National Fuel Gas Company Performance Incentive Program Long-Term Incentive Description (2006–2009)
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Summary
National Fuel Gas Company established a long-term performance incentive program for certain executive officers, effective from October 1, 2006 to September 30, 2009. Under this program, executives are eligible for incentive payments based on the company's total return on capital compared to a group of peer companies. The amount paid ranges from 0% to 200% of a set target, depending on performance percentile. Specific target incentive amounts were set for named executives, and payments are determined by the company's ranking at the end of the performance period.
EX-10.7 8 l24230aexv10w7.htm EX-10.7 EX-10.7
Exhibit 10.7
Description of long-term performance incentives under National Fuel Gas Company Performance Incentive Program
On December 6, 2006, the Compensation Committee approved long-term performance incentives under the National Fuel Gas Company Performance Incentive Program (the “Program”). The Committee established levels of performance at which 50%, 100%, 150% and 200% of the Target Incentive will be payable, as set forth below. For performance levels between established levels, a portion of the Target Incentive will be payable as determined by mathematical interpolation.
The Committee designated a Performance Period of October 1, 2006 to September 30, 2009. The Performance Condition is the Company’s total return on capital as compared to that of a group of peer companies. Payment will be made in accordance with the Program if the Company achieves performance as detailed below:
National Fuel Rank as a Percentile of Peer Group | Percentage of Target Incentive Paid | |||
Less than 45.01% | 0 | % | ||
45.01% | 50.00 | % | ||
60.00% | 100.00 | % | ||
75.00% | 150.00 | % | ||
100.00% | 200.00 | % | ||
For the October 1, 2006 to September 30, 2009 Performance Period, the Committee approved the following Target Incentives for the named executive officers of the Company: P. C. Ackerman, $774,000; D. F. Smith, $385,000; and R. J. Tanski, $308,750.
