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In a recent filing with the Securities and Exchange Commission, DTE Energy Co (NYSE:DTE), a Detroit-based utility company with a market capitalization of $26.77 billion, disclosed the approval of performance measures and metrics that will determine executive compensation for 2025. According to InvestingPro data, DTE has maintained strong financial performance, with a GOOD overall Financial Health Score and a 55-year track record of consecutive dividend payments.
On Monday and Tuesday, the Organization and Compensation Committee (O&C Committee) of DTE Energy's Board of Directors established the performance criteria for the company's Annual Incentive Plan (AIP) and Long-Term Incentive Plan (LTIP). These incentive programs are designed to align the interests of executives with those of shareholders by tying compensation to the company's financial and operational performance.
For the AIP, the performance measures for DTE Energy's executive officers include Operating Earnings Per Share, Cash From Operations, Customer Satisfaction Score, Employee Engagement-Gallup, Safety Performance, and Utility Operating Excellence Index. The weightings of these measures range from 5% to 30%. For DTE Vantage, a subsidiary of DTE Energy, additional measures such as Vantage Operating Earnings and Business Optimization & Development Index are included, with weightings from 5% to 40%.
The target awards for named executive officers, including Chairman and Chief Executive Officer Jerry Norcia, vary between 75% and 145% of their base salary. The actual award amounts will be based on the company's performance against the established thresholds.
The LTIP, which covers a three-year period from January 1, 2025, to December 31, 2027, focuses on long-term growth and profitability. The performance shares awarded under this plan will be contingent on factors such as total shareholder return compared to peers and DTE Energy's cumulative operating EPS. Executives can earn from 0% to 200% of the target based on the achievement of these measures.
The LTIP target awards for 2025, which will pay out in 2028, range from 190% to 625% of base salary for the officers, including the CEO. The performance measures for DTE Vantage executives include additional criteria focused on long-range earnings growth and long-term business optimization.
This SEC filing highlights DTE Energy's commitment to performance-based executive compensation and provides transparency into the metrics that will influence the remuneration of its top leadership. The disclosed information is based on the company's recent press release statement. With analysts forecasting EPS of $7.19 for FY2025 and the company maintaining profitability over the last twelve months, InvestingPro subscribers can access detailed analysis and additional insights through the exclusive Pro Research Report, available for over 1,400 US stocks.
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