EXHIBIT 10(h)
2000 ANNUAL INCENTIVE PLAN
FPL GROUP, INC.
AND
FLORIDA POWER & LIGHT COMPANY
2000 Annual Incentive Plan
FPL Group, Inc. and Florida Power & Light Company
Objectives:
1. Recognize outstanding performers who have contributed significantly
to the Corporation's success and to their respective business unit.
2. Align the corporate vision, goals and strategy to compensation strategy.
3. Provide a compensation environment which will attract, retain, and
motivate talented employees.
Eligible Participants:
All exempt employees of FPL Group, Inc. and all affiliates.
Executives and Grades 1 - 14: Nomination based on significant
contribution to the successful
accomplishment of corporate and
business unit indicators.
Corporate Goals:
The amount of annual incentive compensation earned shall be determined based
on the degree of achievement of the corporate net income goals specified by
the Compensation Committee (see Exhibit I, page 3). Amounts earned on the
basis of achievement of the net income goals are subject to reduction based
on the degree of achievement of the performance indicators specified by the
Compensation Committee and at the discretion of the Compensation Committee.
Both the goals and the targeted awards shall be set forth in writing (which
may be the minutes of a meeting) by the Compensation Committee.
Levels of Performance:
Performance will be measured at three levels:
1. Corporate Net Income
- Payouts cannot exceed the maximum targeted award. Amounts earned in
accordance with this performance measure are subject to reduction
based on performance at the next two levels.
2. Corporate Performance (CP)
- Financial indicators
- General operating indicators
- Major milestone indicators
3. Business Unit Performance (BUP)
- General operating indicators
- Major milestone indicators
- Cross functional indicators
The "Allocation Formula" for the CP and BUP performance measures shall be
determined by the Compensation Committee.
Target Award By Organizational Level:
Position 2000 Target Award (1) Allocation% (2)
- ------------------- --------------------- ---------------
Executives
Chairman & CEO..... 75 ........ 100/0/0
President.......... 60%-65% ........ 100/0/0
Vice President..... 25%-50% ........ 50/50/0
Exempt Employees (3) 2000 Award Range (3) Allocation A% (2)
- ------------------- -------------------- -----------------
Grade 12-14........ 0-24% ........ 50/50/0
Grade 10-11........ 0-19% ........ 50/50/0
Grade 8-9 ........ 0-11% ........ 50/50/0
Grade 6-7 ........ 0-7% ........ 0/100/0
Grade 1-5 ....... 0-5% ........ 0/100/0
(1) Calculated as a percentage of base salary.
(2) Corporate percent/Business Unit percent/individual percent.
(3) For exempt levels 1 through 14 the annual incentive plan is also
referred to as the "Performance Excellence Rewards Plan". For these
exempt employees, at the sole discretion of the CEO, a pool of
dollars may be established annually based on corporate and business
unit performance for each business unit to then allocate on an
individual basis as specified by the Award Ranges listed above.
Awards may exceed these guidelines for extraordinary performance.
Note: All calculations of CP and BUP will be multiplied by the
CEO/BU factor (0% - 120%).
Conditions:
- - Participant must be employed on or before September 1 and at the time
the awards are paid unless otherwise provided by the corporation.
Awards for participants employed between January and September will be
prorated.
- - Retirement, disability or death may result in a prorated award. Early
retirement may result in a prorated award with Compensation Committee
approval.
- - Payments awarded under this Plan will be the responsibility of the
Compensation Committee. For non-executive levels, payments will be
subject to the discretion of FPL management.
2000 ANNUAL INCENTIVE PLAN
2000 CORPORATE NET INCOME GOALS:
FPL Group Net Payout % of
Income (M) (1) Target Award
-------------- ------------
$XXX and above 200%
$XXX 180%
$XXX 160%
$XXX 150%
$XXX 100%
$XXX 50%
$XXX 0%
For net income performance falling between specified amounts, the percentage
of the targeted award earned shall be determined by interpolation.
Net income shall be as reported in the annual audited financial statements of
the Corporation, as determined in accordance with generally accepted
accounting principles, adjusted to exclude the impact on net income of any
changes in accounting principles, extraordinary items, non-recurring charges
or gains, discontinued operations, regulatory and/or legislative changes,
labor union disruptions and acts of God such as hurricanes.
(1) Consolidated net income of FPL and FPL Group, Inc.