Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14C INFORMATION
Information Statement Pursuant to Section 14(c)
of the Securities Exchange Act of 1934 (Amendment No. )
Check the appropriate box:
o Preliminary Information Statement
o Confidential, for Use of the Commission Only (as permitted by Rule 14c-5(d)(2))
þ Definitive Information Statement
CENTRAL ILLINOIS PUBLIC SERVICE COMPANY
(Name of Registrant As Specified In Its Charter)
Payment of Filing Fee (Check the appropriate box):
þ No fee required |
o Fee computed on table below per Exchange Act Rules 14c-5(g) and 0-11 |
(1) Title of each class of securities to which transaction applies: |
(2) Aggregate number of securities to which transaction applies: |
(3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): |
(4) Proposed maximum aggregate value of transaction: |
(5) Total fee paid: |
o Fee paid previously with preliminary materials. |
o Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
(1) Amount Previously Paid: |
(2) Form, Schedule or Registration Statement No.: |
(3) Filing Party: |
(4) Date Filed: |
Table of Contents
![(LOGO)](https://capedge.com/proxy/DEF 14C/0000950137-07-003730/r12953r1295300.gif)
![(-s- STEVEN R. SULLIVAN)](https://capedge.com/proxy/DEF 14C/0000950137-07-003730/r12953r1295315.gif)
Section | Page | |||
1 | ||||
1 | ||||
2 | ||||
2 | ||||
2 | ||||
2 | ||||
3 | ||||
3 | ||||
3 | ||||
4 | ||||
5 | ||||
7 | ||||
8 | ||||
9 | ||||
9 | ||||
11 | ||||
11 | ||||
11 | ||||
11 | ||||
12 | ||||
12 | ||||
13 | ||||
13 | ||||
13 | ||||
14 | ||||
22 | ||||
25 | ||||
26 | ||||
28 | ||||
30 | ||||
35 | ||||
36 | ||||
36 | ||||
36 | ||||
36 | ||||
37 | ||||
37 | ||||
37 |
Table of Contents
Table of Contents
2
Table of Contents
- | by mail addressed to Office of the Secretary Central Illinois Public Service Company P.O. Box 66149, Mail Code 1370 St. Louis, MO63166-6149 | |
- | by calling toll free1-800-255-2237 (or in the St. Louis area314-554-3502). |
3
Table of Contents
4
Table of Contents
5
Table of Contents
6
Table of Contents
• | considering compensation for the Executives (as defined below) in the context of all of the components of total compensation; | |
• | requiring several meetings to discuss important decisions; | |
• | reviewing tally sheets for the Executives including all components of total compensation packages; | |
• | receiving meeting materials several days in advance of meetings; | |
• | conducting executive sessions with Committee members only; and | |
• | obtaining professional advice from an outside compensation consultant engaged directly by the Committee that enabled the Committee to make decisions in the best interests of the Company, and having direct access to the outside compensation consultant. |
7
Table of Contents
8
Table of Contents
• | the highest professional and personal ethics; | |
• | broad experience in business, government, education or technology; | |
• | ability to provide insights and practical wisdom based on their experience and expertise; | |
• | commitment to enhancing shareholder value; | |
• | sufficient time to effectively carry out their duties; their service on other boards of public companies should be limited to a reasonable number; | |
• | compliance with legal and regulatory requirements; and | |
• | ability to develop a good working relationship with other Board members. |
9
Table of Contents
10
Table of Contents
11
Table of Contents
Number of Shares of | ||||||||
Ameren Common Stock | Percent | |||||||
Name | Beneficially Owned(1) | Owned(2) | ||||||
Warner L. Baxter | 28,398 | * | ||||||
Scott A. Cisel | 11,522 | * | ||||||
Daniel F. Cole | 41,640 | * | ||||||
Gary L. Rainwater | 70,533 | * | ||||||
Steven R. Sullivan | 14,405 | * | ||||||
Thomas R. Voss | 35,431 | * | ||||||
All directors, nominees for director and executive officers as a group (8 persons) | 222,857 | * |
* | Less than one percent. | |
(1) | This column lists voting securities, including Ameren restricted stock held by executive officers over which the individuals have voting power but no investment power. For Mr. Cole, this column also includes 16,300 shares issuable within 60 days upon the exercise of Ameren stock options. None of the other named individuals held shares issuable within 60 days upon the exercise of Ameren stock options. Reported shares include those for which a director, nominee for director or executive officer has voting or investment power because of joint or fiduciary ownership of the shares or a relationship with the record owner, most commonly a spouse, even if such director, nominee for director or executive officer does not claim beneficial ownership. | |
(2) | For each individual and group included in the table, percentage ownership is calculated by dividing the number of shares beneficially owned by such person or group as described above by the sum of the 206,599,810 shares of Ameren Common Stock outstanding on February 1, 2007 and the number of shares of Ameren Common Stock that such person or group had the right to acquire on or within 60 days of February 1, 2007, including, but not limited to, upon the exercise of options. |
12
Table of Contents
Gordon R. Lohman
Richard A. Lumpkin
Harvey Saligman
Patrick T. Stokes
13
Table of Contents
• | base salary; | |
• | short-term incentives; | |
• | long-term incentives, specifically Ameren’s Performance Share Units Program; | |
• | retirement benefits; and | |
• | change of control protection. |
14
Table of Contents
AGL Resources | Edison International | Public Service Enterprise Group, Inc. | ||
CenterPoint Energy | FPL Group | SCANA Corporation | ||
Cinergy Corp. | NiSource Inc. | Sempra Energy | ||
CMS Energy | Pepco Holdings, Inc. | Southern Company | ||
Dominion Resources, Inc. | PG&E Corporation | TXU Corp. | ||
DTE Energy Company | PPL Corporation | WGL Holdings |
15
Table of Contents
Payout as a | ||||||
Level of Performance | EPS | Percent of Target | ||||
Maximum | $3.35 | 150 | % | |||
Target | $3.15 | 100 | % | |||
Threshold | $2.95 | 50 | % | |||
Below threshold | Less than $2.95 | 0 | % | |||
16
Table of Contents
• | provides compensation dependent on Ameren’s three-year Total Shareholder Return (“TSR”) (calculated as described below under “— 2006 Grants’’) versus utility industry peers, as identified below; | |
• | provides some payout (below target) if three-year TSR is below the 30th percentile but EPS in each year of the three-year performance period is at least equal to the dividend paid of $2.54 per Ameren common share in 2005; | |
• | accrues dividends during the performance period, as declared and paid, in order to further align executives’ interests with those of shareholders; | |
• | promotes retention of executives during a three-year performance and vesting period; and | |
• | shares Ameren Common Stock price increases and decreases over a five-year period. |
• | align executives’ interests with shareholder interests: awards are denominated in Ameren Common Stock units and paid out in Ameren Common Stock. Payouts are dependent on Ameren’s Common Stock performance, and are limited to target if TSR is negative; | |
• | competitive with market practice: the majority of regulated utility companies use plans similar to this program, and with this performance measure; | |
• | promote Common Stock ownership: payout of earned awards is made 100% in Common Stock, with dividends on Common Stock, as declared and paid, reinvested into additional share units throughout the performance period. Share units are restricted from sale for two years once earned; | |
• | allow executives to share in the returns created for shareholders: returns for shareholders include dividends as declared and paid and this is reflected in the plan performance measure and rewards; and | |
• | retentive: annual competitive grants with a three-year vesting and performance period provide incentive for executives to stay with Ameren and manage Ameren in the long-term interests of Ameren and its shareholders. |
17
Table of Contents
![(FLOW CHART)](https://capedge.com/proxy/DEF 14C/0000950137-07-003730/r12953r1295301.gif)
![(FLOW CHART)](https://capedge.com/proxy/DEF 14C/0000950137-07-003730/r12953r1295302.gif)
18
Table of Contents
• | Classified as a transmission and distribution, integrated electric and gas, or diversified energy company as determined by Standard & Poor’s Ratings Service (“S&P”) in its company classifications. | |
• | Market capitalization greater than $2 billion (as of August 5, 2005). | |
• | Minimum S&P credit rating of BBB- (investment grade). | |
• | Dividends flat or growing over the2003-2004 period. | |
• | Beta (a measure of a stock’s volatility in comparison to the market as a whole) within .25 of Ameren’s Beta over the last five years. | |
• | Not an announced acquisition target. |
Consolidated Edison, Inc. | FPL Group, Inc. | PPL Corporation | ||
Dominion Resources, Inc. | Great Plains Energy Inc. | Progress Energy, Inc. | ||
DTE Energy Company | Keyspan | Puget Energy | ||
Duke Energy | Northeast Utilities | SCANA Corporation | ||
Energy East | NSTAR | Southern Company | ||
Entergy Corporation | OGE Energy | Vectren Corporation | ||
Exelon Corporation | Pepco Holdings, Inc. | Wisconsin Energy | ||
FirstEnergy Corporation | Pinnacle West Capital Corporation | WPS Resources Corporation | ||
Xcel Energy, Inc. | ||||
Payout (% of Share | ||||||
Performance | Units Granted) | |||||
90th percentile + | 200% | ) | If TSR is negative over the three-year | |||
70th percentile | 150% | ) ß | period, the plan is capped at 100% of | |||
50th percentile | 100% | ) | target regardless of performance vs. peers | |||
30th percentile | 50% | |||||
Less than 30th percentile (EPS each year = $2.54 or greater) | 30% | |||||
Less than 30th percentile (EPS each year $2.54 or greater) | 0% (No payout) |
19
Table of Contents
• | employee benefit plans that are available to all employees of Ameren, including 401(k) savings and tax-qualified retirement plans; | |
• | the Supplemental Retirement Plan (“SRP”) provides the Executives a benefit equal to the difference between the benefit that would have been paid if IRC limitations were not in effect and the reduced benefit payable as a result of such IRC limitations; and | |
• | the deferred compensation plans (“DCP”) provide the opportunity to defer to future years taxability of part of base salary and all non-equity incentive compensation at an identified interest rate. It enhances retirement savings for the Executives. |
20
Table of Contents
• | Mr. Rainwater: 3 times base salary; | |
• | Messrs. Baxter and Voss: 2 times base salary; and | |
• | Messrs. Cole and Sullivan: 1 times base salary. |
• | base salary changes for 2006 were determined at the December 2005 Committee meeting; | |
• | Executive Incentive Plan EPS goals for 2006 were set at the December 2005 Committee meeting; and | |
• | PSU grants to Executives were made at the February 2006 Committee meeting subject to shareholder approval of the 2006 Omnibus Incentive Compensation Plan, which occurred at the annual meeting of shareholders in May 2006. The Committee typically makes long-term incentive grants at its February meeting. |
21
Table of Contents
Change in | |||||||||||||||||||||||||||||||||||||||||||||
Pension | |||||||||||||||||||||||||||||||||||||||||||||
Value and | |||||||||||||||||||||||||||||||||||||||||||||
Non-Equity | Nonqualified | ||||||||||||||||||||||||||||||||||||||||||||
Stock | Option | Incentive Plan | Def. Comp. | All Other | |||||||||||||||||||||||||||||||||||||||||
Name and Principal | Salary(2) | Bonus(2) | Award(3) | Awards(4) | Compensation(2)(5) | Earnings(6) | Compensation(6)(7) | Total | |||||||||||||||||||||||||||||||||||||
Position at December 31, 2006(1) | Year | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | ||||||||||||||||||||||||||||||||||||
G.L. Rainwater | 2006 | 900,000 | — | 1,722,938 | — | 243,000 | 352,088 | 26,366 | 3,244,392 | ||||||||||||||||||||||||||||||||||||
Chairman and Chief Executive Officer, CIPS and Chairman, President and Chief Executive Officer, Ameren | |||||||||||||||||||||||||||||||||||||||||||||
W.L. Baxter | 2006 | 500,000 | — | 491,898 | — | 180,000 | 76,060 | 22,042 | 1,270,000 | ||||||||||||||||||||||||||||||||||||
Executive Vice President and Chief Financial Officer, CIPS and Ameren | |||||||||||||||||||||||||||||||||||||||||||||
T.R. Voss | 2006 | 440,000 | — | 468,068 | — | 118,800 | 151,572 | 18,250 | 1,196,690 | ||||||||||||||||||||||||||||||||||||
Executive Vice President, CIPS and Executive Vice President and Chief Operating Officer, Ameren | |||||||||||||||||||||||||||||||||||||||||||||
S.R. Sullivan | 2006 | 380,000 | — | 348,511 | — | 119,700 | 92,733 | 9,611 | 950,555 | ||||||||||||||||||||||||||||||||||||
Senior Vice President, General Counsel and Secretary, CIPS and Ameren | |||||||||||||||||||||||||||||||||||||||||||||
D.F. Cole | 2006 | 310,000 | — | 249,913 | — | 93,000 | 85,007 | 13,233 | 751,153 | ||||||||||||||||||||||||||||||||||||
Senior Vice President, CIPS | |||||||||||||||||||||||||||||||||||||||||||||
(1) | Includes compensation received as an officer of Ameren and its subsidiaries (including CIPS). |
22
Table of Contents
(2) | All cash compensation received by each Executive for fiscal year 2006 is found in either the Salary or Non-Equity Incentive Plan Compensation column of this Table. The amounts that would generally be considered “bonus” awards are found under the Non-Equity Incentive Plan Compensation column. | |
(3) | The amounts in column (e) reflect the dollar amount recognized for financial statement reporting purposes for the fiscal year ended December 31, 2006, in accordance with FAS 123R of restricted stock awards under Ameren’s Long-Term Incentive Plan of 1998 and PSU awards under Ameren’s 2006 Omnibus Incentive Compensation Plan without regard to estimated forfeitures related to service-based vesting conditions and thus, include amounts from awards granted in and, in the case of restricted stock awards, prior to 2006. Assumptions used in the calculation of these amounts are described in Note 11 to our audited financial statements for the fiscal year ended December 31, 2006 included in our 2006Form 10-K. | |
(4) | None of the Executives received any option awards in 2006. | |
(5) | Represents payouts for 2006 performance under the EIP. See “— Compensation Discussion and Analysis” for a discussion of how amounts were determined. | |
(6) | Amounts shown in column (h) are the sum of (1) the increase in the actuarial present value of each Executive’s accumulated benefit under all defined benefit and actuarial pension plans (including the SRP) from December 31, 2005 to December 31, 2006 and (2) the difference between the interest rate credited in Ameren’s deferred compensation plans and 120% of the Internal Revenue Service (“IRS”) long-term Applicable Federal Rate published by the IRS and calculated as of January 1, 2007. The table below shows the allocation of these amounts for each Executive. For 2006, the applicable interest rate was 7.86%. The above-market earnings equal that amount minus 120% of the Applicable Federal Rate of 5.70% published by the IRS, and calculated as of January 2007. |
Pension Plan | Deferred Compensation Plans | |||||||||
Increase | Above-Market Interest | |||||||||
Name | ($) | ($) | ||||||||
Rainwater | 297,990 | 54,098 | ||||||||
Baxter | 67,470 | 8,590 | ||||||||
Voss | 133,044 | 18,528 | ||||||||
Sullivan | 78,528 | 14,205 | ||||||||
Cole | 74,607 | 10,400 | ||||||||
For assumptions and methodology regarding the determination of pension values, please refer to the footnotes under the Pension Benefits Table. | ||
(7) | None of the Executives received perquisites and other personal benefits in the aggregate amount of $10,000 or more. | |
The amounts in column (i) reflect for each Executive matching contributions allocated by Ameren to each Executive pursuant to Ameren’s 401(k) Plan, which is available to all salaried employees, and the cost of insurance premiums paid by Ameren with respect to term life insurance. The cost of the insurance premium for Mr. Rainwater was $16,466. Each Executive is responsible for paying income tax on the amount of the insurance premium. |
23
Table of Contents
All Other | All Other | Grant | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholder | Stock | Option | Date | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Approval of | Estimated Possible Payouts | Estimated Future Payouts | Awards: | Awards: | Exercise or | Fair | ||||||||||||||||||||||||||||||||||||||||||||||||||
2006 Omnibus | Under Non-Equity | Under Equity | Number of | Number of | Base | Value | ||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive | Incentive Plan Awards(2) | Incentive Plan Awards(3) | Shares of | Securities | Price of | of Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation | Stock | Underlying | Option | and Option | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Grant | Plan | Threshold | Target | Maximum | Threshold | Target | Maximum | or Units | Options(4) | Awards(4) | Awards(5) | |||||||||||||||||||||||||||||||||||||||||||||
Name | Date(1) | Date(1) | ($) | ($) | ($) | (#) | (#) | (#) | (#) | (#) | ($/Sh) | ($) | ||||||||||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | (k) | (l) | (m) | ||||||||||||||||||||||||||||||||||||||||||||
Rainwater | EIP:2/10/2006 | 405,000 | 810,000 | 1,215,000 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
PSUP:2/10/2006 | PSUP:5/2/2006 | — | — | — | 16,779 | 55,928 | 111,856 | — | — | — | 3,136,066 | |||||||||||||||||||||||||||||||||||||||||||||
Baxter | EIP:2/10/2006 | 150,000 | 300,000 | 450,000 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
PSUP:2/10/2006 | PSUP:5/2/2006 | — | — | — | 5,327 | 17,755 | 35,510 | — | — | — | 995,581 | |||||||||||||||||||||||||||||||||||||||||||||
Voss | EIP:2/10/2006 | 132,000 | 264,000 | 396,000 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
PSUP:2/10/2006 | PSUP:5/2/2006 | — | — | — | 4,688 | 15,624 | 31,248 | — | — | — | 876,089 | |||||||||||||||||||||||||||||||||||||||||||||
Sullivan | EIP:2/10/2006 | 114,000 | 228,000 | 342,000 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
PSUP:2/10/2006 | PSUP:5/2/2006 | — | — | — | 4,049 | 13,494 | 26,988 | — | — | — | 756,653 | |||||||||||||||||||||||||||||||||||||||||||||
Cole | EIP:2/10/2006 | 77,500 | 155,000 | 232,500 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
PSUP:2/10/2006 | PSUP:5/2/2006 | — | — | — | 2,110 | 7,033 | 14,066 | — | — | — | 394,363 | |||||||||||||||||||||||||||||||||||||||||||||
(1) | The PSU awards were granted on February 10, 2006, subject to shareholder approval of the 2006 Omnibus Incentive Compensation Plan. The grant date of the PSU awards to the Executives is therefore May 2, 2006, the date of Ameren shareholder approval of the 2006 Omnibus Incentive Compensation Plan. See “— Compensation Discussion and Analysis” for a discussion of the timing of various pay decisions. | |
(2) | The amounts shown in column (d) reflect the threshold payment level under the EIP which is 50% of the target amount shown in column (e). The amount shown in column (f) is 150% of such target amount. These amounts are based on the individual’s 2006 salary and position. See “— Compensation Discussion and Analysis” for information regarding the description of performance-based conditions. | |
(3) | The amounts shown in column (g) reflect the threshold PSU award which is 30% of the target amount shown in column (h). The amount shown in column (i) is 200% of such target amount. See “— Compensation Discussion and Analysis” for information regarding the terms of the awards, the description of performance-based vesting conditions, and the criteria for determining the amounts payable. | |
(4) | None of the Executives received any option awards in 2006. | |
(5) | Represents the full grant date fair value of the PSU awards in 2006 determined in accordance with FAS 123R, based on the assumptions referenced in footnote (3) to the Summary Compensation Table. |
24
Table of Contents
Option Awards(1) | Stock Awards | ||||||||||||||||||||||||||||||||||||||||||||
Equity Incentive | Equity Incentive | Equity Incentive | |||||||||||||||||||||||||||||||||||||||||||
Plan Awards: | Plan Awards: | Plan Awards: | |||||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number | Number of | Market or | |||||||||||||||||||||||||||||||||||||||||
Securities | Securities | of Securities | Number of | Market Value of | Unearned Shares, | Payout Value of | |||||||||||||||||||||||||||||||||||||||
Underlying | Underlying | Underlying | Shares or | Shares or | Units, or Other | Unearned Shares, | |||||||||||||||||||||||||||||||||||||||
Unexercised | Unexercised | Unexercised | Option | Units of Stock | Units of Stock | Rights That | Units, or Other | ||||||||||||||||||||||||||||||||||||||
Options | Options | Unearned | Exercise | Option | That Have Not | That Have Not | Have Not | Rights That Have | |||||||||||||||||||||||||||||||||||||
Exercisable | Unexercisable | Options | Price | Expiration | Vested | Vested | Vested(2) | Not Vested(3) | |||||||||||||||||||||||||||||||||||||
Name | (#) | (#) | (#) | ($) | Date | (#) | ($) | (#) | ($) | ||||||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | ||||||||||||||||||||||||||||||||||||
Rainwater | — | — | — | — | — | — | — | 41,956 | 2,254,296 | ||||||||||||||||||||||||||||||||||||
Baxter | — | — | — | — | — | — | — | 18,270 | 981,647 | ||||||||||||||||||||||||||||||||||||
Voss | — | — | — | — | — | — | — | 14,873 | 799,126 | ||||||||||||||||||||||||||||||||||||
Sullivan | — | — | — | — | — | — | — | 11,588 | 622,623 | ||||||||||||||||||||||||||||||||||||
Cole | 16,300 | — | — | 31.00 | 2/11/10 | — | — | 10,356 | 556,428 | ||||||||||||||||||||||||||||||||||||
(1) | None of the Executives, except for Mr. Cole, hold any options to purchase shares of Ameren’s Common Stock. | |
(2) | Represents outstanding grants of PSUs at threshold (due to lack of payout history) and restricted stock awards at target, based on historical payout levels. |
# of Potential Shares Vesting (at Target) Each Year Including Projected Dividends | |||||||||||||||||||||||||
Name | 3/1/08 | 3/1/09 | 3/1/10 | 3/1/11 | 3/1/12 | ||||||||||||||||||||
Rainwater | 8,705 | 7,078 | 5,126 | 4,187 | 2,597 | ||||||||||||||||||||
Baxter | 4,352 | 3,720 | 2,770 | 2,251 | 1,347 | ||||||||||||||||||||
Voss | 3,662 | 2,824 | 2,010 | 1,679 | 1,147 | ||||||||||||||||||||
Sullivan | 2,596 | 2,079 | 1,581 | 1,302 | 801 | ||||||||||||||||||||
Cole | 3,311 | 2,453 | 1,540 | 1,192 | 688 | ||||||||||||||||||||
The 2006 PSU awards under the 2006 Omnibus Incentive Compensation Plan vest, subject to Ameren achieving the required performance threshold and continued employment of the Executive, as of December 31, 2008 for all Executives. See “— Compensation Discussion and Analysis —Long-Term Incentives: Performance Share Unit Program(“PSUP”).” | ||
(3) | The dollar value of the payout of 2006 PSU awards is based on achieving the threshold (minimum) performance goals for such awards. The dollar value of the payout of outstanding restricted stock awards is based on achieving target performance goals for such awards. Valuations are based on the closing price of $53.73 per share of Ameren’s Common Stock on the NYSE on December 29, 2006, the last business day of 2006. There is no guarantee that, if and when the PSU awards and restricted stock awards vest, they will have this value. |
25
Table of Contents
Option Awards(1) | Stock Awards | |||||||||||||||||||
Number of Shares | Number of Shares | Value | ||||||||||||||||||
Acquired on | Value Realized | Acquired on | Realized on | |||||||||||||||||
Exercise | on Exercise | Vesting(2) | Vesting(3) | |||||||||||||||||
Name | (#) | ($) | (#) | ($) | ||||||||||||||||
(a) | (b) | (c) | (d) | (e) | ||||||||||||||||
Rainwater | — | — | 5,156 | 269,813 | ||||||||||||||||
Baxter | — | — | 2,550 | 133,442 | ||||||||||||||||
Voss | — | — | 2,201 | 115,178 | ||||||||||||||||
Sullivan | — | — | 1,554 | 81,321 | ||||||||||||||||
Cole | — | — | 1,997 | 104,503 | ||||||||||||||||
(1) | None of the Executives, except for Mr. Cole, hold any options to purchase shares of Ameren’s Common Stock. | |
(2) | These shares were earned and vested under the restricted stock awards under Ameren’s Long-Term Incentive Plan of 1998 due to achievement of specified EPS hurdles for restricted shares awarded during2001-2005. The restricted shares were released on March 1, 2007. | |
(3) | The value of the vested restricted shares is based on the closing price of $52.33 per share of Ameren’s Common Stock on the NYSE on March 1, 2007. |
Number of | Present Value of | |||||||||||||||||
Years Credited | Accumulated | Payments During | ||||||||||||||||
Service | Benefit(1)(2) | Last Fiscal Year(3) | ||||||||||||||||
Name | Plan Name | (#) | ($) | ($) | ||||||||||||||
(a) | (b) | (c) | (d) | (e) | ||||||||||||||
Rainwater | 1) Retirement Plan | 27 | 701,437 | — | ||||||||||||||
2) Supplemental Retirement Plan | 27 | 955,031 | — | |||||||||||||||
Baxter | 1) Retirement Plan | 11 | 87,582 | — | ||||||||||||||
2) Supplemental Retirement Plan | 11 | 181,616 | — | |||||||||||||||
Voss | 1) Retirement Plan | 37 | 802,767 | — | ||||||||||||||
2) Supplemental Retirement Plan | 37 | 257,183 | — | |||||||||||||||
Sullivan | 1) Retirement Plan | 17 | 215,801 | — | ||||||||||||||
2) Supplemental Retirement Plan | 17 | 158,512 | — | |||||||||||||||
Cole | 1) Retirement Plan | 31 | 457,638 | — | ||||||||||||||
2) Supplemental Retirement Plan | 31 | 184,615 | — | |||||||||||||||
(1) | Represents the actuarial present value of the accumulated benefits relating to the Executives under the Retirement Plan and the SRP as of December 31, 2006. See Note 10 to our audited consolidated financial statements for the year ended December 31, 2006 included in our 2006 Form10-K for an explanation of the valuation method and all material assumptions applied in quantifying the present value of the accumulated benefit. The calculations were based on retirement at the plan normal retirement age of 65, included no pre-retirement decrements in determining the present value, used an |
26
Table of Contents
80% lump sum/20% annuity payment form assumption, and used the plan valuation mortality assumptions after age 65 in the 1994 Group Annuity Reserving Table. Cash balance accounts were projected to age 65 using the 2006 plan interest crediting rate of 5.00%. | ||
(2) | The following table provides the Cash Balance Account (Lump Sum) Value for accumulated benefits relating to the Executives under the Retirement Plan and the SRP at December 31, 2006 as an alternative to the presentation of the actuarial present value of the accumulated benefits relating to the Executives under the Retirement Plan and the SRP as of December 31, 2006. |
Cash Balance | ||||||
Lump Sum Value | ||||||
Name | Plan Name | ($) | ||||
Rainwater | 1) Retirement Plan | 741,728 | ||||
2) Supplemental Retirement Plan | 1,009,887 | |||||
Baxter | 1) Retirement Plan | 104,082 | ||||
2) Supplemental Retirement Plan | 215,832 | |||||
Voss | 1) Retirement Plan | 854,799 | ||||
2) Supplemental Retirement Plan | 273,852 | |||||
Sullivan | 1) Retirement Plan | 251,507 | ||||
2) Supplemental Retirement Plan | 184,739 | |||||
Cole | 1) Retirement Plan | 510,142 | ||||
2) Supplemental Retirement Plan | 205,795 | |||||
(3) | All Executives are active and were not eligible for payments prior to December 31, 2006. |
Transition | |||||||||
Credit for | |||||||||
Participant’s Age | Regular Credit for | Pensionable | |||||||
on December 31 | Pensionable Earnings* | Earnings | Total Credits | ||||||
Less than 30 | 3% | 1% | 4% | ||||||
30 to 34 | 4% | 1% | 5% | ||||||
35 to 39 | 4% | 2% | 6% | ||||||
40 to 44 | 5% | 3% | 8% | ||||||
45 to 49 | 6% | 4.5% | 10.5% | ||||||
50 to 54 | 7% | 4% | 11% | ||||||
55 and over | 8% | 3% | 11% | ||||||
27
Table of Contents
Executive | Company | Aggregate | Aggregate | Aggregate | |||||||||||||||||||||
Contributions | Contributions | Earnings | Withdrawals/ | Balance | |||||||||||||||||||||
in 2006(1) | in 2006 | in 2006(2) | Distributions | at12/31/06(3) | |||||||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | ||||||||||||||||||||
Rainwater | 763,000 | — | 197,096 | — | 2,937,417 | ||||||||||||||||||||
Baxter | 50,016 | — | 31,277 | — | 456,614 | ||||||||||||||||||||
Voss | 132,000 | — | 67,467 | — | 998,164 | ||||||||||||||||||||
Sullivan | 114,000 | — | 51,731 | — | 772,362 | ||||||||||||||||||||
Cole | 62,208 | — | 37,870 | — | 557,054 | ||||||||||||||||||||
(1) | A portion of these amounts are also included in amounts reported as “salary” in column (c) of the Summary Compensation Table. These amounts also include a portion of amounts reported as “Bonus” in our 2006 information statement, representing bonuses paid in 2006 for performance during 2005. | |
(2) | The dollar amount of aggregate interest earnings accrued during 2006. The above-market interest component of these amounts is included in amounts reported in column (h) of the Summary Compensation Table. See footnote (6) to the Summary Compensation Table for the amounts of above-market interest. | |
(3) | The dollar amount of the total balance of the Executive’s account as of December 31, 2006 consists of the following elements. |
28
Table of Contents
Total Per | ||||||||||||||||||||
Executive | Interest | Table | Amount Previously Reported as | |||||||||||||||||
Contributions | Earnings | Above | Compensation in Prior Years(1) | |||||||||||||||||
Name | ($) | ($) | ($) | ($) | ||||||||||||||||
Rainwater | 2,330,313 | 607,104 | 2,937,417 | 1,432,786 | ||||||||||||||||
Baxter | 300,602 | 156,012 | 456,614 | 109,466 | ||||||||||||||||
Voss | 672,237 | 325,927 | 998,164 | 294,125 | ||||||||||||||||
Sullivan | 582,472 | 189,890 | 772,362 | 192,000 | ||||||||||||||||
Cole | 392,755 | 164,299 | 557,054 | 118,416 | ||||||||||||||||
(1) | Represents amounts previously reported as compensation to the Executive in the Company’s Summary Compensation Table in previous years. |
29
Table of Contents
30
Table of Contents
• | Retirement Plan Benefit Assumptions. Amount equal to the difference between (a) the account balance under the Retirement Plan and SRP which the participant would receive if his or her employment continued during the three-year period upon which severance is received (assuming the participant’s compensation during such period would have been equal to his or her compensation as in effect immediately prior to termination), and (b) the actual account balance (paid or payable) under such plans as of the date of termination. | |
• | Welfare Benefit Payment Assumptions. Continued coverage for the Executive’s family with medical, dental, life insurance and executive life insurance benefits as if employment had not been terminated during the three-year period upon which severance is received. Calculation assumes full cost of benefits over the three-year period upon which severance is received. All retiree medical benefits are payable only in their normal form as monthly premium payments. The actuarial present value of the additional |
31
Table of Contents
retiree medical benefits is included, calculated based on retirement at the end of the three-year severance period, a discount rate of 5.89% (120% of the long-term annual Federal rate at December 2006), and the plan valuation mortality assumptions (only after age 65) in the 1994 Group Annuity Reserving Table. |
Three Years’ Base | Three Years’ | ||||||||||||||||||||||
Salary and Target | Additional | ||||||||||||||||||||||
EIP, Plus Pro Rata | Pension | Three Years’ | Outplacement at | Excise Tax and | |||||||||||||||||||
EIP | Credit | Welfare Benefits(1) | Maximum | Gross-up (to IRS) | |||||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||
Rainwater | 5,940,000 | 985,163 | 55,923 | 30,000 | 4,818,315 | ||||||||||||||||||
Baxter | 2,700,000 | 300,971 | 49,080 | 30,000 | 1,953,342 | ||||||||||||||||||
Voss | 2,376,000 | 469,893 | 49,080 | 30,000 | 1,700,296 | ||||||||||||||||||
Sullivan | 2,052,000 | 289,600 | 49,080 | 30,000 | 1,547,379 | ||||||||||||||||||
Cole | 1,550,000 | 303,825 | 113,208 | 30,000 | 1,059,644 | ||||||||||||||||||
(1) | Reflects the estimated lump-sum present value of all future premiums which will be paid on behalf of or to the Executives under Ameren’s welfare benefit plans. These amounts are not paid as a cash lump sum upon a Change of Control and termination of employment. |
Number of Restricted Shares That Would | |||||
Name | Vest Upon a Change of Control | ||||
Rainwater | 24,341 | ||||
Baxter | 12,678 | ||||
Voss | 9,952 | ||||
Sullivan | 7,338 | ||||
Cole | 8,141 | ||||
32
Table of Contents
• | Change of Control prior to vesting after which there is no traded stock. Upon a Change of Control which occurs on or before December 31, 2008 in which Ameren ceases to exist or is no longer publicly trading on the NYSE or the NASDAQ Stock Market, the target number of PSU awards granted, together with dividends accrued thereon, will be converted to nonqualified deferred compensation. Interest on the nonqualified deferred compensation will accrue based on the prime rate, computed as provided in the award agreement. |
Number of Shares Relating to PSU Awards to | |||
be Paid Out After a Change of Control and on | |||
Name | Earliest of Events Described Above | ||
Rainwater | 58,717 | ||
Baxter | 18,640 | ||
Voss | 16,403 | ||
Sullivan | 14,167 | ||
Cole | 7,384 | ||
• | Change of Control after vesting, and after which there is no traded stock. Upon a Change of Control that occurs after December 31, 2008, the participant will receive an immediate distribution of cash equal to the value of the earned PSUs, computed as provided in the award agreement. | |
• | Change of Control but Ameren continues in existence. If there is a Change of Control but Ameren continues in existence and remains a publicly traded company on the NYSE or the NASDAQ Stock Market, the PSUs will pay out upon the earliest to occur of the following: |
33
Table of Contents
• | Age 61 and under: A prorated award is earned through the termination date at the March 1 following the end of the performance period (based on actual performance) and paid immediately following such March 1. All other unvested restricted shares are forfeited. | |
• | Age 62 or higher: Restricted shares continue to vest in accordance with the terms of the awards. |
Employment Event | Payout (Always in Ameren Common Stock) | |
Death | All awards pay out at target (plus accrual of dividends), pro rata for the number of days worked in each performance period. | |
Disability | All outstanding awards are earned at the same time and to the same extent that they are earned by other participants, and are paid out by March 15 after the performance period ends. | |
Retirement | If retirement occurs during the performance period at: | |
Age 55-62 with 5 years of service: A prorated award is earned at the end of the3-year performance period (based on actual performance) and paid immediately. | ||
Age 62+ with 5 years of service: A full award is earned at the end of the3-year performance period and paid immediately. | ||
If retirement occurs during the2-year holding period following the performance period, payout of earned and vested awards is made immediately. | ||
Number of PSUs That Would Vest Upon | Number of PSUs That Would Vest Upon | |||||||||
Name | Death of Executive | Retirement of Executive(1) | ||||||||
Rainwater | 19,572 | 12,231 | ||||||||
Baxter | 6,213 | — | ||||||||
Voss | 5,468 | 3,417 | ||||||||
Sullivan | 4,722 | — | ||||||||
Cole | 2,461 | — | ||||||||
(1) | Messrs. Baxter, Sullivan and Cole are not retirement eligible. Therefore, no PSUs would vest under this scenario. |
34
Table of Contents
35
Table of Contents
36
Table of Contents
37