Energy Future Holdings' compensation philosophy, practices and principles are intended to compensate executives appropriately for their contribution to the attainment of key strategic objectives, while strongly aligning the interests of executives and stockholders through at-risk equity-based plans that have a direct link to overall corporate performance and to that of the executive's business unit, as well as the executive's individual performance.
An Organization and Compensation Committee, comprised of four non-employee directors establishes and assesses our executive compensation programs.
Stock ownership is a substantial component of EFH's compensation program. Equity ownership, coupled with other long-term incentives, has been and will continue to be an important driver of success. This pay-for-performance compensation philosophy supports the company by:
- Aligning performance measures with our business objectives to drive the financial and operational performance of our company and business units;
- Rewarding business unit and individual performance by providing compensation levels consistent with the level of contribution and degree of accountability;
- Attracting and retaining the best performers; and
- Strengthening the correlation between the long-term interests of our executive officers and the interests of stockholders through equity compensation and investment opportunities.
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