This excerpt taken from the FPL DEF 14A filed Apr 6, 2007.
FPL Groups executive compensation program is designed to retain and motivate (and when necessary attract) high-quality, high-performing executive leadership with the talent and expertise to foster strong business results and enhance shareholder value. To accomplish this, the Company seeks to provide its executive officers with total compensation that is competitive in the marketplace and which provides the executives with the appropriate and necessary incentives to perform in the best interests of the Company.
FPL Groups executive compensation program is critical to:
· recruiting key executives;
· developing future executive officers from within the Company and providing incentives for high potential individuals to grow into more senior roles;
· avoiding the loss of proven and valuable talent to competitors or other employment opportunities and protecting the investment already made in developing executive talent;
· focusing executive officers efforts on an appropriate balance between short and long-term goals, between operational and financial metrics, and on seeking to meet the needs of important non-shareholder interest groups, such as customers, regulators and employees, in ways that build long-term value;
· aligning executive officers decision-making incentives with respect to risk tolerance with the long-term interests of shareholders and non-shareholder interest groups; and
· fostering effective teamwork and coordination between executive officers working in different areas to support FPL Groups core values, strategies and interests.
Drawing on internal and external resources to provide necessary background information and context and to make recommendations where appropriate, the Compensation Committee of FPL Groups Board of Directors (the Compensation Committee) uses its business judgment to establish FPL Groups executive compensation philosophy and policies and oversee the implementation of the Companys executive compensation programs.