ITC Holdings (NYSE:ITC) said in a Form 8-K filed Aug. 21 that the compensation committee of its board of directors approved discretionary cash bonuses in connection with completion of Phase I of the Kansas Electric Transmission Authority (KETA) Project.
KETA Project is a 225-mile, 345-kV transmission line, originating at Spearville, Kan., and terminating at Axtell, Neb. The project, which is estimated to cost $203m, is being constructed in three phases, according to TransmissionHub data.
The committee approved a cash bonus of $97,330 for President and CEO Joseph Welch; $38,175 for Executive Vice President and COO Jon Jipping; $41,466 for Executive Vice President and CFO Cameron Bready; $43,112 for Executive Vice President and Chief Business Officer Linda Blair; and $26,739 for Senior Vice President and General Counsel Daniel Oginsky.
The final amounts will be determined based on the actual capital investment in the project, ITC said in the filing.
In addition, ITC said the committee also approved a retention compensation arrangement for Welch in the aggregate amount of $3m to be paid in two equal cash payments of about $1.5m on each of June 30, 2014, and June 30, 2016, based upon Welch’s continued employment and satisfactory performance as the company’s CEO at such time.
The retention compensation arrangement for Welch was approved by the committee subject to the consent of Entergy (NYSE:ETR) in accordance with the terms of the merger agreement, dated Dec. 4, 2011, among Entergy, Mid South TransCo, ITC and ITC Midsouth, which consent was received on Aug. 21, according to the filing.
The retention payments will not be included in the calculation of benefits payable to Welch pursuant to the company’s management supplemental benefit plan, ITC stated.