This excerpt taken from the UNP DEF 14A filed Mar 24, 2006.
The Audit Committee (the Committee) will assist the Board of Directors in fulfilling its responsibility to oversee: (i) the independence, performance, and qualification of the independent registered public accounting firm, (ii) the audits of the Company and its subsidiaries, (iii) the system of internal controls implemented throughout the Company, (iv) the integrity of the Companys financial statements, (v) the Companys compliance with legal and regulatory requirements, and (vi) the performance of the Companys internal audit function. In addition, the Committee is responsible for preparing the Committee report to be included in the Companys annual Proxy Statement and for reviewing appropriate standards of business conduct for the Company and its employees and monitoring compliance with these standards.
This excerpt taken from the UNP 10-K filed Feb 24, 2006.
The purposes of the Plan are to provide personal incentive and financial rewards to executives who, because of the extent of their responsibilities, can and do make significant contributions to the success of the Company and its Subsidiaries by their ability, industry, loyalty and exceptional services. Making such executives participants in that success will advance the interests of the Company and its shareholders and will assist the Company in attracting and retaining such executives.
This excerpt taken from the UNP DEF 14A filed Mar 21, 2005.
The purposes of the Plan are to provide personal incentive and financial rewards to executives who, because of the extent of their responsibilities, can and do make significant contributions to the success of the Company and its subsidiaries by their ability, industry, loyalty and exceptional services. Making such executives participants in that success will advance the interests of the Company and its shareholders and will assist the Company in attracting and retaining such executives.
The following terms shall have the following meanings:
Award means an opportunity granted to a Participant under Section 5 to receive an amount under the Plan.
Board means the Board of Directors of the Company.
Certification shall have the meaning set forth in Section 5(c).
Chief Executive Officer means the chief executive officer of the Company, or the person performing the function of the principal executive office of the Company, as of the end of the year.
Code means the Internal Revenue Code of 1986, as amended, or the corresponding provisions of any successor statute.
Committee means the Compensation and Benefits Committee of the Board, or such other committee of the Board as may from time to time be designated by the Board to administer the Plan pursuant to Section 4.
Covered Employee means, with respect to any year, the Chief Executive Officer, any other executive of the Company or of any Subsidiary who is a covered
employee within the meaning of Section 162(m) of the Code, or any successor provision thereto, and any other executive of the Company.
Maximum Payment shall have the meaning set forth in Section 5(b).
Operating Income, with respect to any Year, means the Companys annual operating income (operating revenues less operating expenses) for the Year as prepared pursuant to generally accepted accounting principles applicable in the United States (GAAP), but excluding the effect of any (a) accruals for amounts payable in respect of the Plan, (b) gains or losses arising from or related to the extinguishment of debt, the disposal of real estate, restructurings and extraordinary items as disclosed in the Companys consolidated statement of operations, notes to the consolidated financial statements or managements discussion and analysis with respect to the consolidated financial statements for the applicable Year or in another Company filing with the Securities and Exchange Commission, and (c) the cumulative effect of changes in accounting principles. Operating Income excludes the effect of any discontinued operations reported in the Companys consolidated statement of operations. For purposes solely of this definition of operating Income, a restructuring shall be deemed to mean any event described in or reported pursuant to Item 2.05 of Securities and Exchange Commission Form 8-K.
Participant means any executive of the Company or of a Subsidiary of the Company selected by the Committee pursuant to Section 5(a) to receive an Award under this Plan with respect to any given Year. A Participant may be a person who becomes an executive during the Year.
Shares means the shares of the Companys common stock, par value $2.50 per share, or a stock-based award, issued pursuant to and subject to the limitations of the Union Pacific Corporation 2004 Stock Incentive Plan or another stockholder-approved plan of the Company.
Subsidiary means any corporation of which the Company owns directly or indirectly at least a majority of the outstanding shares of voting stock.
Year means a fiscal year.