Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On November 30, 2006, the Board of Directors of The Laclede Group, Inc. approved the Compensation Committee’s recommendations for the corporate performance criteria that will be used to determine the amount of the awards for performance in fiscal year 2007 under the Annual Incentive Plan. The Corporate Performance Goals are based on pre-determined levels of earnings per share, the customer satisfaction ranking among peer companies derived from an annual gas residential customer satisfaction survey by an independent third party, and the aggregate attainment level of all participants’ individual objectives. Further, the Committee approved the individual performance objectives for the Chief Executive Officer. In October 2007, the corporate and individual performance results for the fiscal year ended September 30, 2007 will be reviewed and measured against the adopted criteria. Approximately 33 employees are eligible to participant in the Annual Incentive Plan in 2007. Participants are eligible to earn a cash award expressed as a percentage of the participant’s annual base salary at the start of the performance period. Contingent upon performance, actual payout percentages of the named executive officers included in the company’s most recent proxy statement filed by the Company range from 0-75% for D. H. Yaeger, 0-60% for each of K. J. Neises, R. E. Shively, and B. C. Cooper and 0-45% for M. C. Darrell.