2003 Short-Term Incentive Plan for Officers of PG&E Corporation and Subsidiaries
PG&E Corporation and its subsidiaries established a 2003 Short-Term Incentive Plan 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 earnings, cash reserves, progress on reorganization and restructuring, and subsidiary performance. Each officer group has a different weighting for these components, with awards tied to achieving financial and operational goals during 2003.
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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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- EXHIBIT 10.35
