Exhibit 10-42
DTE ENERGY COMPANY
2002 STOCK INCENTIVE PLAN
PERFORMANCE SHARE GRANT MEASURES & TARGETS
JANUARY 23, 2002
- -----------------------------------------------------------------------------------------
Threshold Target Maximum
Weight 50% Payout 100% Payout 200% Payout
- -----------------------------------------------------------------------------------------
Earnings Growth 60% 2% 4% 8%
- -----------------------------------------------------------------------------------------
Total Shareholder Return 25% 25th %ile 50th %ile 90th %ile
- S&P Utility Index
- -----------------------------------------------------------------------------------------
Employee Satisfaction/Engagement 15% 30th %ile 50th %ile 75th %ile
- -----------------------------------------------------------------------------------------
NOTES:
To determine final payouts, the actual results will be interpolated between the
Threshold and Target, and between the Target and Maximum for each of the three
measures.
THESE PROPOSED MEASURES, TARGETS, AND WEIGHTINGS ARE IDENTICAL TO THE 2001
DESIGN.
DTE ENERGY COMPANY
1998 RESTRICTED STOCK GRANT PRELIMINARY RESULTS
JANUARY 23, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Actual Weighted
Weight Level 1 Level 2 Level 3 Results Payout
- ------------------------------------------------------------------------------------------------------------------------------------
Positive & Positive & Positive &
Total Shareholder Return 55% 90th %ile 50th to 90th %ile 25th %ile 10th Position 35.4%
of DJEU of DJEU of DJEU 73rd %ile
PAYOUT Equal To or Greater Than 100% 50% - 75% 25%
- ------------------------------------------------------------------------------------------------------------------------------------
Customer Satisfaction 15% Top Decile Upper Upper 80% 3.8%
Quartile Third 73rd %ile
PAYOUT Equal To or Greater Than 100% 50% - 100% 25%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Production Cost ($/MWh) 15% $18.93 or $18.93 to $19.13 to TBD TBD
Less $19.13 $19.32
PAYOUT Equal To or Greater Than 100% 50% - 100% 25%
- ------------------------------------------------------------------------------------------------------------------------------------
INPO Performance Indicator
Index 15% Upper Above Third Below Third 0.0%
Quartile Median Quartile Quartile
PAYOUT Equal To or Greater Than 100% 50% - 75% 25% - 50%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Payout = TBD
------------------------
DTE ENERGY COMPANY
2002 ANNUAL INCENTIVE PLAN - MEASURES & TARGETS
JANUARY 23, 2002
- -------------------------------------------- -------------------------------------------------------
2001 Plan Design 2002 Plan Design
- -------------------------------------------- -------------------------------------------------------
Threshold Target Maximum Threshold Target Maximum 2001
Weight 50% Payout 100% Payout 200% Payout Weight 50% Payout 100% Payout 200% Payout Results
- ------------------------------------------------------------------------------------------------------------------------------------
50% 11.3% 12.0% 12.6% ROE for 2001 (1) 12.6% p
($3.30) ($3.50) ($3.70) (Pro-forma 2001 EPS)
EPS for 2002 (1) 50% $3.55 $3.75 $4.00 $3.45 p
- ------------------------------------------------------------------------------------------------------------------------------------
20% $50 $75 $125 Cash Flow ($ in Millions) (2) 25% $50 $100 $200 $64 p
- ------------------------------------------------------------------------------------------------------------------------------------
10% 82% 83% 85% Customer Satisfaction (3) 15% 76% 82% 86% 83%
- ------------------------------------------------------------------------------------------------------------------------------------
5% 7% 9% 11% Diversity - Minority Spending N/A Goals established for individual
organizations 14%
- ------------------------------------------------------------------------------------------------------------------------------------
5% Diversity Placements (4) 10%
22% 25% 26% - Minorities 22% 25% 26% 27%
25% 28% 30% - Women 25% 28% 30% 31%
- ------------------------------------------------------------------------------------------------------------------------------------
10% 40 35 27 Safety - N/A Goals established for individual
organizations 38
Lost Work Day Incidents
- ------------------------------------------------------------------------------------------------------------------------------------
NOTES:
(1) For 2001, ROE (and pro-forma EPS) excluded goodwill amortization and
restructuring charges. For 2002, EPS targets are on an "as reported" (all
inclusive) basis.
(2) For 2002, cash flow is defined as cash from operations; less regulated and
non-regulated capital expenditures and dividends; plus MCN out-of-region
asset sales.
(3) For 2002 approximately 90% of DTE's customers will be included in this
measurement (both electric and gas, residential, small businesses and some
large businesses).
(4) For 2002 Diversity Placements will be measured across the entire DTE
enterprise.
(5) To determine final payouts, the actual results will be interpolated between
the Threshold and Target, and between the Target and Maximum for each of
the four measures.