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2010 Annual Incentive Plan
2010 Annual Incentive Plan
Introduction and Objectives
PacifiCorp’s Annual Incentive Plan provides performance awards based on the following: achieving the goals of
PacifiCorp, Pacific Power, Rocky Mountain Power and PacifiCorp Energy; individual performance; company
management of risk and safety; and success in addressing new issues and opportunities that may arise during
the course of the year. Awards will be made based upon measurable achievement of results. Achievement will
be measured by senior management. This approach supports the philosophy of incentive compensation as pay
at risk that is earned based on the company, business unit and individual performance.
Plan Details
Eligibility
All regular, full and part-time nonrepresented employees of PacifiCorp are eligible to participate in the
Annual Incentive Plan (AIP).
A participant must be employed in an incentive-eligible position on or before Sept. 1, 2010 to be eligible to
receive an award. Any employee hired after Sept. 1, 2010 is not eligible.
Employees who are employed for less than the plan term due to retirement, disability, or death will be
considered eligible and may receive a prorated award at the discretion of management, reflective of
achievement of goals, company and individual performance, and other factors.
Employees who are on a qualified leave during the plan term will be eligible for participation
in the plan.
Employees who are employed for less than the plan term due to a termination for cause, voluntary
resignation, are affiliated with the Hiring Hall, are contractors or are bargaining unit employees are ineligible
for participation.
Please note:
Award recipients who are “inactive” but eligible (retirees/displaced/deceased) can expect to
receive their awards approximately two weeks after active employees.
Bargaining unit employees who transfer into incentive-eligible positions must have been
employed in their incentive-eligible positions on or before Sept. 1, 2010 in order to be
eligible for participation.
Those transferring from bargaining unit to incentive-eligible positions will have their awards
calculated based on eligible earnings while in incentive-eligible positions only. (Eligible
earnings accumulated while occupying bargaining unit jobs will NOT be considered as
eligible earnings for the purposes of incentive payment.)
Plan Term
The plan term is Jan. 1, 2010 through Dec. 31, 2010.
Plan Components
Incentive awards are structured to achieve a target incentive payout. Target award percentages are based on
job classification derived from competitive market data.
ID PAC-E-11-12
PIIC 81 Attachment PIIC 81 -1
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2010 Annual Incentive Plan
All participants will have an award opportunity based upon company, business unit and individual performance
as measured and assessed by senior management.
Company and business unit performance will be evaluated based on meeting objectives established in
operating and business plans and the organization’s success in responding to unexpected events.
Any adjustments for individual performance will be reviewed by each president (business unit leader) and a final
decision made in collaboration with senior management prior to final award determination.
Eligible Earnings
For full plan year participants, awards under the plan will be based on the greater of eligible earnings or
annualized salary, as described below. For partial year participation and part-time employees, awards will be
based on eligible earnings only.
Regular pay
Overtime pay
401(k) pre-tax employee deferrals
Pre-tax insurance plan contributions and reimbursement account contributions
Please note:
Bonuses of any kind are not considered part of eligible earnings for the purposes of AIP
calculation.
Payment of Awards
Payment is targeted for Dec. 17, 2010, pending approvals.
ID PAC-E-11-12
PIIC 81 Attachment PIIC 81 -1
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