PG&E Corporation

Market CEO Transition Awards

August 6, 2019

Case: 19-30088 Doc# 3454-1 Filed: 08/07/19 Entered: 08/07/19 18:49:50 Page 1

of 4
Background

Willis Towers Watson (“WTW”) and Weil Gotshal & Manges LLP (“Weil”) have been 

engaged by Pacific Gas and Electric Corporation (“PG&E”) to advise on potential 

restructuring incentive compensation strategies. Specifically, PG&E has engaged WTW to 

advise on potential pay strategies, provide relevant market data, and develop 

compensation design considerations. To that end, WTW was asked to collect market 

examples of recruited CEO transition awards

Market Examples of CEO Transition Awards:

 WTW’s research team identified 30 examples of recruited CEO transition awards over a 

4.5 year period at 28 companies (Ralph Lauren and Mattel each had two instances)

 We collected data on “sign on” and replacement/buy out” awards for our analysis as 

disclosed in proxy statements or 8K filings

 Median FY2018 revenue of the 28 companies was $4.0 billion

 Disclosed market pay data was collected on the estimated value of awards, form/type of 

awards (cash, stock options, restricted stock/units and performance shares/units

 The aggregate value of the awards was calculated to arrive at a total transition award 

value

 Additionally, we calculated the prevalence of each type of award at the 30 companies. 

Note that companies ranged from using only one type of award to using 4 types of 

awards

© 2019 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 2

Case: 19-30088 Doc# 3454-1 Filed: 08/07/19 Entered: 08/07/19 18:49:50 Page 2

of 4
CEO Transition Awards (continued on next page)

30 Examples – 28 companies 

© 2019 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only. 3

Company Form of Award

Shares/ 

Options/ 

Units 

Awarded Award Value 

Award 

Value as 

a Percent 

of Salary Vesting Terms

Total Award 

Value as Percent 

of Salary Cash

Restricted 

Shares / 

Units

Stock 

Options

Perf 

Shares / 

Units Cash

Restricte

d Shares 

/ Units

Stock 

Options

Perf 

Shares / 

Units

Total Est. Award 

Value

The Andersons, Inc. Restricted shares 28,249 $ 1,001,710 111% 3-year ratable

Stock options 325,000 $ 3,370,250 374% 3-year ratable

Arconic Inc. Stock options 363,970 $ 3,858,957 309% 4-year cliff

RSUs 99,280 $ 3,000,242 240% 3-year cliff

Cash - $ 650,000 52% 1-year cliff

Ashland Global Holdings Inc. Restricted shares 50,000 $ 5,953,500 527% 2-year ratable 527% 1 100% $ 5,953,500

Barnes & Noble, Inc. RSUs 368,098 $ 5,999,997 500% 3-year ratable

Cash - $ 600,000 50% -

The Brink's Company Stock options 400,000 $ 2,366,667 256% Contingent

RSUs 91,770 $ 2,631,964 285% Contingent

Caesars Entertainment Corporation Stock options 1,000,000 $ 5,012,000 278% See note

RSUs 200,000 $ 2,302,000 128% 4-year ratable

Cerner Corporation Stock options 182,006 $ 4,000,014 500% 5-year graded

RSUs 60,438 $ 3,700,014 463% 3-year ratable

Cheniere Energy, Inc. Restricted shares 236,381 $ 8,214,240 657% 3-year graded 657% 1 100% $ 8,214,240

Chipotle Mexican Grill, Inc. Premium priced SARs 53,086 $ 4,011,709 334% 3-year ratable

Premium priced SARs 114,840 $ 9,721,206 810% 3-year ratable

RSUs 30,141 $ 9,649,943 804% 3-year ratable

Cash - $ 1,000,000 83% 1-year cliff

Colfax Corporation RSUs 94,841 $ 3,750,013 375% 3-year ratable

Cash - $ 3,000,000 300% 3-year ratable

DENTSPLY SIRONA Inc. RSUs 74,508 $ 4,200,016 454% 3-year graded

Stock options 40,800 $ 608,312 66% 3-year cliff

PRSUs 8,870 $ 525,051 57% 3-year performance

Cash - $ 500,000 54% 1-year cliff

Dover Corporation RSUs 164,603 $ 13,127,089 1094% 5-year ratable

Performance shares 75,971 $ 6,058,687 505% 3-year performance

Cash - $ 1,000,000 83% 2-year ratable

Equifax Inc. Performance shares 44,461 $ 6,014,101 401% 3-year performance

RSUs 22,230 $ 2,499,986 167% 3-year cliff

Stock options 88,919 $ 1,983,966 132% 3-year ratable

Flowserve Corporation Stock options 114,943 $ 2,000,000 182% 3-year cliff 1 100% $ 2,000,000

General Cable Corporation Stock options 352,087 $ 1,999,995 216% 3-year ratable

Cash - $ 500,000 54% - -

H&R Block, Inc. Stock options 273,905 $ 1,375,003 138% 3-year ratable

RSUs 138,749 $ 4,125,008 415% 3-year ratable

Cash - $ 950,000 95% 4-month cliff

1 1

1 1 1

1 1 1 1

1 1 1

1 1 1

1 1

1 1 1

1 1

1 1

1 1 1

1 1

1 1

1 1

648%

550%

675%

270%

631%

1682%

700%

963%

2032%

9% 91% $ 6,599,997

406%

540% 53% 47% $ 4,998,631

31% 69% $ 7,314,000

48% 52% $ 7,700,028

4% 40% 56% $ 24,382,858

44% 56% $ 6,750,013

9% 72% 10% 9% $ 5,833,379

5% 65% 30% $ 20,185,777

24% 19% 57% $ 10,498,053

$ 6,450,011

20% 80% $ 2,499,995

15% 64% 21%

Award Mix by Vehicle & Total Award Value

601% 9% 40% 51% $ 7,509,199

486% 23% 77% $ 4,371,960

Prevelence of Award Vehicle

Case: 19-30088 Doc# 3454-1 Filed: 08/07/19 Entered: 08/07/19 18:49:50 Page 3

of 4
CEO Transition Awards (Cont’d)

30 Examples – 28 companies 

© 2019 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only. 4

Company Form of Award

Shares/ 

Options/ 

Units 

Awarded Award Value 

Award 

Value as 

a Percent 

of Salary Vesting Terms

Total Award 

Value as Percent 

of Salary Cash

Restricted 

Shares / 

Units

Stock 

Options

Perf 

Shares / 

Units Cash

Restricte

d Shares 

/ Units

Stock 

Options

Perf 

Shares / 

Units

Total Est. Award 

Value

Mattel, Inc. RSUs 194,072 $ 4,312,280 287% 3-year graded

Stock options 1,603,499 $ 5,034,987 336% 3-year graded

RSUs 494,001 $ 12,350,025 823% 12-month ratable

Mattel, Inc. Performance stock options 1,068,376 $ 4,444,444 296% 3-year performance 296% 1 100% $ 4,444,444

Nielsen Holdings plc RSUs 487,505 $ 13,742,766 1057% 3-year ratable

Performance stock options 367,031 $ 1,466,901 113% 3-year performance

RSUs 54,285 $ 1,400,010 108% 3-year cliff

Premium priced stock 

options 750,000 $ 1,620,000 125% 3-year ratable

Cash - $ 2,500,000 192% ND

Cash - $ 1,500,000 115% 1-year cliff

Perrigo Company plc Stock options 110,074 $ 2,500,001 208% 3-year cliff

Cash - $ 950,000 79% -

Pinnacle Foods Inc. Restricted shares 95,057 $ 3,999,999 421% 2-year cliff

Stock options 222,965 $ 1,999,996 211% 3-year cliff

PRSUs 47,528 $ 2,106,441 222% 3-year performance

Cash - $ 1,000,000 105% -

Platform Specialty Products Corporation RSUs 250,000 $ 2,962,500 296% 3-year cliff

PRSUs 250,000 $ 2,909,997 291% 3-year performance

Ralph Lauren Corporation Performance share units 13,886 $ 1,481,006 118% 4-year performance

PRSUs 13,887 $ 1,507,746 121% 1-year performance w/ 2 

year ratable vesting

RSUs 26,660 $ 2,868,979 230% 4-year ratable

Cash - $ 2,750,000 220% 1-year cliff

Ralph Lauren Corporation APRSUs 45,198 $ 3,188,856 255% 1-year performance w/ 2 

year ratable vesting

Performance shares 43,333 $ 2,975,114 238% 3-year performance

RSUs 34,913 $ 2,270,179 182% 5-year cliff

Cash - $ 3,384,888 271% 1-year cliff

Realogy Holdings Corp. RSUs 76,220 $ 2,500,016 250% 3-year ratable

Stock options 261,234 $ 2,500,009 250% 4-year ratable

Scientific Games Corporation PRSUs 400,000 $ 3,660,000 203% 3-year performance 203% 1 100% $ 3,660,000

Signet Jewelers Limited Restricted shares 81,900 $ 5,027,841 335% 2-year ratable 335% 1 100% $ 5,027,841

Tiffany & Co. RSUs 12,846 $ 1,400,086 104% 3-year ratable

Stock options 169,092 $ 3,372,608 250% 3-year ratable

Cash - $ 2,800,000 207% 2-ratable cliff

Visteon Corporation RSUs 36,103 $ 4,353,250 435% 3-year cliff

Cash - $ 3,250,000 325% 2-year ratable

Xerox Corporation Restricted shares 350,755 $ 10,000,025 833% 1-year cliff

Cash - $ 1,500,000 125% -

Prev: 53.3% 83.3% 56.7% 33.3% Average $ 8,628,420

# Cos: 16 25 17 10 P50 $ 7,032,007

Total Cos: 30 P25 $ 5,006,979

P10 $ 3,639,000

1 1

1 1 1

1 1

1 1

1 1 1

1 1

1 1

1 1 1

1 1 1 1

1 1

1 1 1 1

958%

1710%

288%

561%

760%

689%

946%

500%

1446%

959%

587%

77% 23% $ 21,697,292

18% 68% 7% 7% $ 22,229,677

28% 72% $ 3,450,001

11% 44% 22% 23% $ 9,106,436

50% 50% $ 5,872,497

32% 33% 35% $ 8,607,731

29% 19% 52% $ 11,819,037

50% 50% $ 5,000,025

37% 18% 45% $ 7,572,694

43% 57% $ 7,603,250

13% 87% $ 11,500,025

Prevelence of Award Vehicle Award Mix by Vehicle & Total Award Value

Case: 19-30088 Doc# 3454-1 Filed: 08/07/19 Entered: 08/07/19 18:49:50 Page 4

of 4