Business Context and Reporting Period
This Form 8-K filing by Black Hills Corporation reports on events occurring on February 1, 2006. The filing details the approval of annual incentive award targets for 2006 for the Company's executive officers under the Officers Short-Term Incentive Plan.
Key Financial Metrics
The filing does not provide consolidated financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation structures.
Material Changes and Executive Compensation
The Compensation Committee approved 2006 incentive targets payable in February 2007. Bonuses are structured as 50% cash and 50% Company common stock, contingent on achieving designated earnings per share goals. The following table outlines the base salaries and bonus percentages for Named Executive Officers as of January 1, 2006:
| Executive Officer | Base Salary | Threshold Bonus | Target Bonus | Maximum Bonus |
|---|---|---|---|---|
| David R. Emery (Chairman, President, CEO) | $525,000 | 21% | 70% | 140% |
| Thomas M. Ohlmacher (COO - Wholesale) | $340,600 | 15% | 50% | 100% |
| Linden R. Evans (COO - Retail) | $241,400 | 15% | 50% | 100% |
| Mark T. Thies (EVP, CFO) | $280,300 | 12% | 40% | 80% |
| Russell D. Cohen (SVP, Chief Risk Officer) | $246,200 | 12% | 40% | 80% |
| Steven J. Helmers (SVP, General Counsel) | $252,100 | 10.5% | 35% | 70% |
Guidance, Outlook, and Risks
The filing does not contain financial guidance, outlook, management commentary on operations, or specific risk factors. The primary contingency noted is that the bonuses are conditional upon achieving designated earnings per share goals.
Key Facts for Investor Verification
- Verify the specific earnings per share goals required to trigger the 2006 incentive awards.
- Confirm the total potential cash and stock payout exposure for the executive team based on the maximum bonus percentages.
- Review subsequent filings to determine if the 2006 performance targets were met and if payouts were executed in February 2007.