PG&E Corporation 2003 Short-Term Incentive Plan for Officers

Summary

PG&E Corporation and its subsidiaries established a 2003 Short-Term Incentive Plan (STIP) for their officers, as approved by the Nominating and Compensation Committee. The plan sets out how bonuses will be determined based on specific performance measures, including corporate and subsidiary financial results, cash reserves, and progress on key restructuring and reorganization initiatives. Each officer group has a defined weighting for these components, ensuring that incentives align with both company-wide and subsidiary-specific goals for the year.

EX-10.35 18 a2104540zex-10_35.htm EXHIBIT 10.35
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EXHIBIT 10.35

2003 SHORT-TERM INCENTIVE PLAN

Background

At its meeting on December 18, 2002, the Nominating and Compensation Committee reviewed and approved the 2003 Short-Term Incentive Plan (STIP) for officers of PG&E Corporation and each subsidiary. The structure (Attachment A) establishes the weighting of corporate earnings from operations, subsidiary earnings from operations, and other performance factors for officers.

2003 Recommended Officer Short-Term Incentive Plan Structure

Officer Group	Award Component	Weight	Performance Measures
PG&E Corporation	Corporate Financial Performance	25%	Corporate earnings from operations
	Corporate Liquidity	25%	Sufficient Corporate cash reserves
	Utility Plan of Reorganization	25%	Progress towards the reorganization of Pacific Gas and Electric Company
	NEG Restructuring	25%	Progress towards the restructuring of PG&E National Energy Group
President and CEO — Pacific Gas and Electric Company	Corporate Financial Performance	25%	Corporate earnings from operations
	Subsidiary Financial Performance	25%	Respective subsidiary contribution to corporate earnings from operations
	Utility Plan of Reorganization	50%	Progress towards the reorganization of Pacific Gas and Electric Company
President — PG&E National Energy Group	Corporate Financial Performance	25%	Corporate earnings from operations
	Subsidiary Financial Performance	25%	Respective subsidiary contribution to corporate earnings from operations
	NEG Restructuring	50%	Progress towards the restructuring of PG&E National Energy Group
Pacific Gas and Electric Company	Corporate Financial Performance	25%	Corporate earnings from operations
	Utility Plan of Reorganization	25%	Progress towards the reorganization of Pacific Gas and Electric Company
	Subsidiary Financial Performance	25%	Respective subsidiary contribution to corporate earnings from operations
	Subsidiary Operational Performance	25%	Financial, operating, and service measures determined by subsidiary CEO

PG&E National Energy Group	Corporate Financial Performance	25%	Corporate earnings from operations
	NEG Restructuring	25%	Progress towards the restructuring of PG&E National Energy Group
	Subsidiary Financial Performance	25%	Respective subsidiary contribution to corporate earnings from operations
	Subsidiary Operational Performance	25%	Financial, operating, and service measures determined by subsidiary CEO

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