EX-10.42 8 k68272ex10-42.txt 2002 MEASURES & TARGETS FOR STOCK INCENTIVE PLAN 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.