Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers.
At the meeting of the Human Resources Committee (the
Committee
) of the Board of Directors of Ameren Corporation (
Ameren
), held on December 7, 2017, the Committee approved new forms of award agreements for Amerens annual equity awards to be granted in
2018 and a new severance plan for its officers. Both actions are described in more detail below.
2018 Long Term Incentive Program
The following description explains certain changes to Amerens annual equity award grants for 2018 (the
2018 LTIP
).
Pursuant to the 2018 LTIP, annual equity award grants in 2018 consist of a mix of performance share units (
PSUs
) and
restricted stock units (
RSUs
). Participants will receive 70% of the value of their award in the form of PSUs and 30% of the value of their award in the form of RSUs. Previously, participants received 100% of the value of their
award in the form of PSUs. Both PSUs and RSUs are denominated in Ameren stock units and paid out in shares of Ameren common stock. Dividend equivalents accrue on both PSUs and RSUs, which are reinvested into additional PSUs or RSUs and vest at the
same time and in the same proportion as the underlying awards.
The target number of Ameren stock units underlying PSUs and RSUs granted
in 2018 will be determined by dividing the value of an award by the 30-trading-day average price of Ameren common stock prior to the start of the performance period. The target number of Ameren stock units underlying equity awards was previously
determined by dividing the value of the award by the prior December share price average of Ameren common stock.
PSUs and RSUs granted in
2018 will only vest if a participant remains employed with Ameren through the payment date for the awards, except that awards will vest on a pro rata basis in the event of a participants earlier retirement or death. The payment date will occur
in 2021 and must be no later than March 15, 2021. PSUs will vest between 0% and 200% of target stock units depending on Amerens total shareholder return (
TSR
) relative to its peer group during the performance period.
However, PSU payouts will be capped at 150% of target stock units if Amerens TSR is negative over the performance period. PSU payouts were previously capped at 100% of target stock units if Amerens TSR was negative over the performance
period.
The foregoing description does not purport to be complete, and is qualified in its entirety by reference to the full text of the
forms of 2018 Performance Share Unit Award Agreement and 2018 Restricted Stock Unit Award Agreement, which are attached as Exhibit 10.1 and Exhibit 10.2 hereto.
Executive Severance Plan
Pursuant to the
Ameren Corporation Severance Plan for Ameren Officers (the
Severance Plan
), certain officers of Ameren and its participating subsidiaries, including the named executive officers of Ameren, Union Electric Company and Ameren
Illinois Company, receive certain payments and benefits upon a termination of employment by Ameren without Cause (as defined in the Severance Plan) (an
Eligible Termination
). Officers who are terminated for Cause or who terminate
employment due to death or Disability (as defined in the Severance Plan), among other reasons, are not eligible to receive payments or benefits under the Severance Plan.
Upon an Eligible Termination, Amerens named executive officers (and other members of
Amerens Executive Leadership Team) receive the following payments and benefits (the
Severance
):
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a lump sum payment equal to one times the sum of his or her annual base salary
plus
his or her target annual cash incentive award in effect at termination of employment.
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A pro-rated annual cash incentive (bonus) payable based on actual performance for the year of termination.
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If COBRA continuation coverage is elected, a subsidy benefit equal to 100% of the applicable cost, up to a maximum period of 12 months.
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Up to $25,000 in outplacement career transition services for 12 months following an Eligible Termination.
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In order to receive the Severance, such officers must sign and not revoke a release in a form acceptable to Ameren. This release may also
include a requirement to comply with certain restrictive covenants to the extent applicable to an officers position.
The foregoing
description does not purport to be complete, and is qualified in its entirety by reference to the full text of the Severance Plan, which is attached as Exhibit 10.3 hereto.