This excerpt taken from the PCG DEF 14A filed Apr 1, 2009.
What Factors Guided the Compensation Committee's 2008 Officer Compensation Program Goals and Objectives?
The Committee established officer compensation programs for 2008 to meet three primary goals:
To meet these goals, the Committee determined that:
These goals and objectives were unchanged from 2007.
In 2008, the Committee solicited the views of PG&E Corporation's top 40 institutional investors about PG&E Corporation's executive compensation programs and practices. The responses were favorable. A majority supported the Committee's goals and objectives and agreed that the design of PG&E Corporation's executive compensation programs implements a pay-for-performance philosophy.
Finally, while the Committee is cognizant of the tax deductibility limitations imposed by Section 162(m) of the U.S. Internal Revenue Code, the Committee does not limit compensation to those levels or types of compensation that will be deductible.