Centerior board approves changes in executive compensation.INDEPENDENCE, Ohio--(BUSINESS WIRE)--Nov. 22, 1994--Centerior Energy Corporation's board of directors today approved a plan to freeze the base salaries of senior executives for three years and create an equity-based program linking the executives' compensation to common stock performance. Both the freeze and the equity-based compensation program will apply to chairman, president chief executive officer Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Farling, executive vice president Murray Murray, river, Australia Murray, principal river of Australia, 1,609 mi (2,589 km) long, rising in the Australian Alps, SE New South Wales, and flowing westward to form the New South Wales–Victoria boundary. R. Edelman Ed·el·man , Gerald Maurice Born 1929. American biochemist. He shared a 1972 Nobel Prize for research on the chemical structure and nature of antibodies. , and the company's nine senior vice presidents and vice presidents. The compensation program requires the approval of shareholders and will be submitted to a vote at Centerior's next annual meeting in April, 1995. Farling, who recommended the actions to the board, said they will make compensation increases for senior management dependent on improvement in the company's operations and financial results as reflected in the price of the common stock. Under the compensation program, senior executives will be encouraged to increase their ownership of Centerior stock, thereby maximizing their stake in the company's performance. ``In order for our management team to benefit from the new executive compensation program, which includes stock options, substantial progress will have to be achieved,'' Farling said. ``I think that's the right way to structure it, and the board agreed. The electric utility industry, including our company, faces many serious challenges. As a result, we must have very ambitious strategic objectives. Financial rewards will be appropriate only to the extent that we succeed in meeting those challenges and achieving our strategic objectives. If we are highly successful, on the other hand, it will be appropriate to adjust executive compensation accordingly.'' One of the company's prime challenges, Farling said, is building shareholder value. This is a major reason, he said, why payouts to executives beyond their frozen base salaries will be keyed to common stock performance. ``Our executives will be rewarded if our shareholders win,'' Farling said. ``Until our shareholders win, a substantial part of total executive compensation will be at risk.'' Centerior's strategic objectives, announced early this year, set targets for shareholders' return on investment, revenues, customer satisfaction, employee commitment, and power costs. Farling described the new executive compensation plan as a further step toward focusing the entire organization on these objectives. Centerior Energy, through its two operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Cleveland Cleveland, former county, England Cleveland, former county, NE England, created under the Local Government Act of 1972 (effective 1974). It was composed of the county boroughs of Hartlepool and Teeside and parts of the former counties of Durham and Electric Illuminating il·lu·mi·nate v. il·lu·mi·nat·ed, il·lu·mi·nat·ing, il·lu·mi·nates v.tr. 1. To provide or brighten with light. 2. To decorate or hang with lights. 3. and Toledo Toledo, city, Spain Toledo, city (1990 pop. 60,671), capital of Toledo province, central Spain, in Castile–La Mancha, on a granite hill surrounded on three sides by a gorge of the Tagus River. Edison Edison, township (1990 pop. 88,680), Middlesex co., NE N.J., inc. 1870 as Raritan Township, renamed 1954. Edison's varied manufactures include light trucks, chemicals, metal products, electrical and electronic equipment, machinery, and instruments. , serves nearly three million people in northern Ohio. CONTACT: Centerior Energy Corp., Cleveland
Gerald J. Meyer, 216/447-3613
After hours: 216/623-1060
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