PSEG Shareholders Vote on Board and Executive Pay, Reject By-Law Amendments

Published 25/04/2025, 22:06
PSEG Shareholders Vote on Board and Executive Pay, Reject By-Law Amendments

NEWARK, NJ – Public Service Enterprise Group Incorporated (NYSE:PEG), a $40.3 billion utility company currently rated as overvalued according to InvestingPro analysis, held its annual meeting of stockholders on Tuesday, where a series of proposals were put to a vote, including the election of directors, executive compensation, and amendments to the company’s Certificate of Incorporation and By-Laws.

The stockholders re-elected all of management’s nominees to the Board of Directors, with terms expiring in 2026. The advisory vote on executive compensation was also approved. The company has demonstrated strong shareholder returns, maintaining dividend payments for 55 consecutive years and raising them for the past 13 years straight - one of several key insights available through InvestingPro’s comprehensive analysis tools. However, proposed amendments to the Certificate of Incorporation and By-Laws that would eliminate supermajority voting requirements did not receive the necessary 80% affirmative vote and were therefore not approved. These included changes to the requirements for business combinations, director removal without cause, and certain amendments to the By-Laws.

Deloitte & Touche LLP was ratified as PSEG’s independent auditor for the year 2025.

The final voting results indicated strong support for the elected directors, with votes in favor significantly outnumbering votes against and abstentions. The proposal to approve executive compensation received over 338 million votes for, compared to approximately 22 million against.

The amendments to alter supermajority voting requirements, however, fell short of the required votes for approval. For instance, the proposal to eliminate supermajority voting for certain business combinations garnered over 356 million votes for, yet still did not meet the threshold for change.

The ratification of Deloitte & Touche LLP as the independent auditor was passed with over 383 million votes in favor, 33 million against, and about 1.1 million abstentions.

The meeting, which was organized in accordance with Regulation 14A under the Securities Act of 1934, did not feature any solicitation of proxies in opposition to the management’s recommendations.

This report is based on a press release statement and provides a summary of the key actions and results from the annual meeting of PSEG shareholders. With the company’s next earnings report due in 5 days and 5 analysts recently revising their earnings expectations upward, investors seeking deeper insights can access PSEG’s full financial health analysis and additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Public Service Enterprise Group (PSEG) announced a quarterly dividend of $0.63 per share for the second quarter of 2025, maintaining its regular payout to shareholders. This decision underscores the company’s stable financial position and commitment to shareholder value. Additionally, PSEG successfully completed a $1 billion senior notes offering, comprising $600 million of 4.900% Senior Notes due 2030 and $400 million of 5.400% Senior Notes due 2035. This capital raise is significant for the company, allowing it to fund corporate purposes.

On the analyst front, BMO Capital Markets adjusted its price target for PSEG shares to $83, maintaining a Market Perform rating, while Jefferies reduced its target to $80, keeping a Hold rating. Ladenburg Thalmann downgraded PSEG from Buy to Neutral, citing revised earnings projections for the coming years. The adjustments reflect varying assessments of PSEG’s financial outlook amidst changes in expected earnings and realized energy prices. These recent developments are of interest to investors monitoring PSEG’s financial trajectory and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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