The contributions of FirstEnergy employees are important to meeting the challenges of our changing business environment. We are committed to rewarding individual and business unit efforts through a total compensation program that includes competitive base and incentive pay.

Base Pay

FirstEnergy’s policy is to pay for performance and ensure equitable salary relationships are maintained among employees. The base pay program is designed to achieve individual base pay levels that represent a balance between an employee’s internal value and the external market. The employee’s actual rate of pay and rate of movement through a salary range should be commensurate with his or her performance and contribution.

Full-time non-bargaining employees participate in the Career Management Process, designed to ensure that employees understand their accountabilities and performance expectations; and that their performance, results and development are measured and managed on an ongoing basis.

Incentive Pay

The Short-Term Incentive Program (STIP) provides incentive awards to employees for performance on crucial financial and operational goals. These goals are represented in the company’s Key Performance Indicators (KPIs). A report is published yearly on the goals and progress is tracked in quarterly publications.

Incentive awards generally are paid as a lump sum in February/March of the following year.

Awards are subject to applicable tax withholding and are eligible for Employee Savings Plan contributions if an employee’s status is active when the incentive award is paid. Non-exempt employees who are eligible for an incentive award and work overtime in the payroll year are eligible for a non-exempt overtime award.

Full-time employees may be eligible to participate in the Short-Term Incentive Program. The plan year is from Jan. 1 through Dec. 31. Employees must work a minimum of 500 hours of productive time to be eligible for an incentive award. Newly hired employees must be on the payroll prior to Oct. 1 and have 500 hours of productive time to be eligible for an award in the year they are hired.

Performance

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