UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of

the Securities Exchange Act of 1934 (Amendment No.    )

Filed by the Registrant    Filed by a Party other than the Registrant

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Preliminary Proxy Statement

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

Definitive Proxy Statement

Definitive Additional Materials

Soliciting Material Pursuant to §240.14a-12

NextEra Energy, Inc.

 

(Name of Registrant as Specified In Its Charter)

 

  

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

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LOGOLOGO

Notice of 20172020

Annual Meeting and

Proxy Statement

 

YOUR VOTE IS IMPORTANT

PLEASE SUBMIT YOUR PROXY PROMPTLY


NextEra Energy, Inc.

P.O. Box 14000

700 Universe Boulevard

Juno Beach, Florida 33408-0420

 

 

Notice of Annual Meeting of Shareholders

May 18, 201721, 2020

 

 

The 20172020 Annual Meeting of Shareholders of NextEra Energy, Inc. (“NextEra Energy” or the “Company”) will be held on Thursday, May 18, 2017,21, 2020, at 8:00 a.m., Central time, in the Ballroom at the Hotel at Kirkwood Center at 7725 Kirkwood Boulevard SW, Cedar Rapids, IowaHyatt Regency Hill Country, 9800 Hyatt Resort Drive, San Antonio, Texas to consider and act upon the following matters:

 

1.

Election as directors of the nominees specified in the accompanying proxy statement;

 

2.

Ratification of appointment of Deloitte & Touche LLP as NextEra Energy’s independent registered public accounting firm for 2017;2020;

 

3.

Approval, bynon-binding advisory vote, of NextEra Energy’s compensation of its named executive officers as disclosed in the accompanying proxy statement;

 

4.

Non-binding advisory vote on whether NextEra Energy should hold a non-bindingTwo shareholder advisory vote to approve NextEra Energy’s compensation of its named executive officers every 1, 2 or 3 years;

5.

Approval of the NextEra Energy, Inc. 2017 Non-Employee Directors Stock Plan;

6.

One shareholder proposal,proposals, as set forth on pages 2517 to 2623 of the accompanying proxy statement, if properly presented at the meeting; and

 

7.5.

Such other business as may properly be brought before the annual meeting or any adjournment(s) or postponement(s) of the annual meeting.

The proxy statement more fully describes these matters. NextEra Energy has not received notice of other matters that may properly be presented at the annual meeting.

The record date for shareholders entitled to notice of, and to vote at, the annual meeting and any adjournment(s) or postponement(s) of the annual meeting is March 23, 2017.2020.

Admittance to the annual meeting will be limited to shareholders as of the record date or their duly appointedduly-appointed proxies. For the safety of attendees, all boxes, handbags and briefcases are subject to inspection. Cameras (including cell phones with photographic capabilities), recording devices and other electronic devices are not permitted at the meeting.

NextEra Energy is pleased to be furnishingdeliver proxy materials by taking advantage ofelectronically via the Securities and Exchange Commission rule thatinternet. Electronic delivery allows issuers to furnish proxy materials to their shareholders on the Internet. NextEra Energy believes this rule allows it to provide you with the information you need for the annual meeting, while reducing the environmental impactimpacts and cost of the annual meeting.costs.

Regardless of whether you expect to attend the annual meeting, please submit your proxy or voting instructions on the Internet or by telephone promptly by following the instructions about how to view the proxy materials on your Notice of Internet Availability of Proxy Materials so that your shares can be voted. If you received your proxy materials by mail, you may submit your proxy or voting instructions on the Internet or by telephone, or you may submit your proxy by marking, dating, signing and returning the enclosed proxy/confidential voting instruction card. If you attend the annual meeting, you may withdraw your proxy and vote in person.

By order of the Board of Directors.Directors,

W. SCOTT SEELEYScott Seeley

Vice President, Compliance & Corporate Secretary

Juno Beach, Florida

March 27, 2017April 3, 2020

As part of our precautions regarding the coronavirus or COVID-19, we are planning for the possibility that the 2020 annual meeting may be held virtually over the internet. If we decide to hold a virtual annual meeting, we will announce the decision to do so in advance and details on how to participate will be issued by press release, posted on our website and filed with the SEC as additional proxy material.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR

THE ANNUAL MEETING TO BE HELD MAY 21, 2020

This proxy statement and the NextEra Energy 2019 annual report to shareholders are available at www.proxyvote.com.


TABLE OF CONTENTSTable of Contents

 

ELECTRONIC DELIVERY OF PROXY MATERIALSProxy Statement Summary

   1 

ABOUT THE ANNUAL MEETINGBusiness and Governance Highlights

   2 

2016 BUSINESS AND GOVERNANCE HIGHLIGHTSBusiness of the Annual Meeting

   8

BUSINESS OF THE ANNUAL MEETING

95 

 Proposal 1: Election as directors of the nominees specified in this proxy statement

   95 

 Proposal 2: Ratification of appointment of Deloitte & Touche LLP as NextEra Energy’s independent registered public accounting firm for 20172020

   1715 

 Proposal 3: Approval, bynon-binding advisory vote, of NextEra Energy’s compensation of its named executive officers as disclosed in this proxy statement

   1816 

 Proposal 4: Non-binding advisory vote on whether NextEra Energy should hold a non-binding shareholder advisory vote to approve NextEra Energy’s compensation of its named executive officers every 1, 2 or 3 yearsShareholder proposal

   2017 

Proposal 5: Approval of the NextEra Energy, Inc. 2017 Non-Employee Directors Stock PlanShareholder proposal

   21 

Information about NextEra Energy and Management

24

 Proposal 6: Shareholder proposalSection 16(a) Beneficial Ownership Reporting Compliance

   2524 

INFORMATION ABOUT NEXTERA ENERGY AND MANAGEMENTThe Company’s Security Trading Policy

   2824 

Common Stock Ownership of Certain Beneficial Owners and Management

   2824 

Section  16(a) Beneficial Ownership Reporting ComplianceCorporate Governance and Board Matters

   30

CORPORATE GOVERNANCE AND BOARD MATTERS

3026 

Corporate Governance Principles & Guidelines/Code of Ethics

   30

Director Resignation Policy

3026 

Director Independence

   3026 

Board Leadership Structure

   32

Board Refreshment and Diversity

3326 

Board Role in Risk Oversight

   3328

Board Evaluations

28 

Director Meetings and Attendance

   3429 

Board Committees

   3429 

Consideration of Director Nominees

   3831 

Communications with the Board

   3932 

Website Disclosures

   4032 

Transactions with Related Persons

   4033 

AUDIT-RELATED MATTERSAudit-Related Matters

   4134 

Audit Committee Report

   4134 

Fees Paid to Deloitte & Touche LLP

   4335 

Policy on Audit CommitteePre-Approval of Audit andNon-Audit Services of Independent Registered Public Accounting Firm

   4335 

EXECUTIVE COMPENSATIONExecutive Compensation

   4437 

Compensation Discussion & Analysis

   4437 

Compensation Committee Report

   6763

Compensation Tables

64 

Table 1a: 20162019 Summary Compensation Table

   6864 

Table 1b: 20162019 Supplemental All Other Compensation

   7066 

Table 2: 20162019 Grants of Plan-Based Awards

   7067 

Table 3: 20162019 Outstanding Equity Awards at Fiscal Year End

   7471 

Table 4: 20162019 Option Exercises and Stock Vested

   7877 

Table 5: Pension Benefits

   7978 

Table 6: Nonqualified Deferred Compensation

   8179 

Potential Payments Upon Termination or Change in Control

   8281 

DIRECTOR COMPENSATIONDirector Compensation

   9089 


SHAREHOLDER PROPOSALS FOR 2018 ANNUAL MEETINGQuestions and Answers about the Annual Meeting

   91 

NO INCORPORATION BY REFERENCENo Incorporation by Reference

   9297 

SHAREHOLDER ACCOUNT MAINTENANCEShareholder Account Maintenance

   9297 

APPENDIXAppendix A: NEXTERA ENERGY, INC. 2017 NON-EMPLOYEE DIRECTORS STOCK PLANReconciliations ofNon-GAAP to GAAP Financial Measures

   A-1 

APPENDIX B: RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL MEASURES

B-1


NextEra Energy, Inc.Proxy Statement Summary

Annual MeetingThis summary highlights information contained elsewhere in this proxy statement. This summary does not contain all of Shareholders

May 18, 2017

PROXY STATEMENT

the information that you should consider. You should read the entire proxy statement carefully before voting. This proxy statement contains information related to the solicitation of proxies by the Board of Directors (the “Board”) of NextEra Energy, Inc. (the “Board”), a Florida corporation (“NextEra Energy,” the “Company,” “we,” “us” or “our”), in connection with the 20172020 annual meeting of NextEra Energy’s shareholders to be held on Thursday, May 18, 2017, at 8:00 a.m., Central time, in the Ballroom at the Hotel at Kirkwood Center at 7725 Kirkwood Boulevard SW, Cedar Rapids, Iowa, and at any adjournment(s) or postponement(s) of the annual meeting.

ELECTRONIC DELIVERY OF PROXY MATERIALS

Under the rules of the Securities and Exchange Commission (“SEC”), NextEra Energy is furnishing proxy materials to many of its shareholders on the Internet, rather than mailing paper copies of the materials to each shareholder.

On or about March 27, 2017,April 3, 2020, NextEra Energy mailed to many of its shareholders of recordbegan mailing this proxy statement and a Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access and review the proxy materials, including the proxy statement and annual report to shareholders, on the Internet. The Notice also instructs shareholders on how to access their proxy card to be able to submit their proxies on the Internet. Brokerage firms and other nominees who hold NextEra Energy shares on behalf of beneficial owners will be sending their own similar Notice. Other shareholders, in accordance with their prior requests, have received an e-mail notification of how to access the proxy materials and submit their proxies on the Internet. On or about March 27, 2017, NextEra Energy also began mailing a full set of proxy materials to certain shareholders, including shareholders who have previously requested a paper copy of the proxy materials.shareholders.

Internet distribution of the proxy materials is designed to expedite receipt by shareholders, lower the cost of the annual meeting, and conserve natural resources. However, if you would prefer to receive printed proxy materials, please follow the instructions included in the Notice. If you have previously elected to receive NextEra Energy’s proxy materials electronically, you will continue to receive the materials via e-mail unless you elect otherwise.

How do I access the proxy materials if I received a Notice of Internet Availability of Proxy Materials?

The Notice you received from NextEra Energy or from your brokerage firm, bank or other nominee provides instructions regarding how to view NextEra Energy’s proxy materials for the 2017 annual meeting on the Internet. As explained in greater detail in the Notice, to view the proxy materials and submit your proxy, you will need to follow the instructions in your Notice and have available your 16-digit Control number(s) contained in your Notice.

How do I request paper copies of the proxy materials?

Whether you hold NextEra Energy shares through a brokerage firm, bank or other nominee (in “street name”), or hold NextEra Energy shares directly in your name through NextEra Energy’s transfer agent, Computershare Trust Company, N.A. (“Computershare”), as a shareholder of record, you may request paper copies of the 2017 annual meeting proxy materials by following the instructions listed atwww.proxyvote.com, by telephoning800-579-1639 or by sending an e-mail tosendmaterial@proxyvote.com.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR

THE ANNUAL MEETING TO BE HELD MAY 18, 2017

This proxy statement and the NextEra Energy 2016 annual report to shareholders are available atwww.proxyvote.com.

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ABOUT THE ANNUAL MEETING

What is the purpose of the annual meeting?

At the annual meeting, shareholders will act upon the matters identified in the accompanying notice of annual meeting of shareholders. These matters include the election as directors of the nominees specified in this proxy statement, ratification of appointment of Deloitte & Touche LLP as NextEra Energy’s independent registered public accounting firm for 2017, approval, by non-binding advisory vote, of NextEra Energy’s compensation of its named executive officers as disclosed in this proxy statement, non-binding advisory vote on whether NextEra Energy should hold a non-binding shareholder advisory vote to approve NextEra Energy’s compensation of its named executive officers every 1, 2 or 3 years, approval of the NextEra Energy, Inc. 2017 Non-Employee Directors Stock Plan, and, if properly presented at the meeting, consideration of one shareholder proposal.

Who may attend the annual meeting?

Subject to space availability, all shareholders as of the record date, or their duly appointed proxies, may attend the annual meeting. Since seating is limited, admission to the meeting will be on a first-come, first-served basis. Registration and seating will begin at 7:30 a.m., Central time. If you plan to attend, please note that you will be asked to present valid picture identification, such as a driver’s license or passport. Invited representatives of the media and financial community may also attend the annual meeting.

You will need proof of ownership of NextEra Energy common stock on the record date to attend the annual meeting:

If you hold shares directly in your name as a shareholder of record or if you are a participant in NextEra Energy’s Employee Retirement Savings Plan:

If you received the Notice and you plan to attend the annual meeting, you may request an admission ticket by calling NextEra Energy Shareholder Services at 800-222-4511.

If you received the proxy materials by mail, an admission ticket is attached to your proxy/confidential voting instruction card. If you plan to attend the annual meeting, please submit your proxy but keep the admission ticket and bring it with you to the annual meeting.

If your shares are held in “street name,” you will need to bring proof that you were the beneficial owner of those “street name” shares of NextEra Energy common stock as of the record date, such as a legal proxy or a copy of a bank or brokerage statement, and check in at the registration desk at the annual meeting.

For the safety of attendees, all boxes, handbags and briefcases are subject to inspection. Cameras (including cell phones with photographic capabilities), recording devices and other electronic devices are not permitted at the annual meeting.

Will the annual meeting be webcast?

The annual meeting will be webcast (audio, listen only) on May 18, 2017. If you do not attend the annual meeting, you are invited to visitwww.nexteraenergy.comat 8:00 a.m., Central time, on Thursday, May 18, 2017 to access the webcast of the annual meeting. You will not be able to vote your shares via the webcast. A replay of the webcast also will be available on NextEra Energy’s website for 90 days after the annual meeting.

Who is entitled to vote at the annual meeting?

Only NextEra Energy shareholders at the close of business on March 23, 2017, the record date for the annual meeting, are entitled to receive notice of, and to vote at, the annual meeting. If you were a shareholder on that date, you will be entitled to vote all of the NextEra Energy shares that you held on that date at the annual meeting or any adjournment or postponement of the annual meeting.

2


What are the voting rights of the holders of the Company’s common stock?

Each outstanding share of NextEra Energy common stock, par value $.01 per share (“common stock”), will be entitled to one vote on each matter properly brought before the annual meeting.

What constitutes a quorum?

The presence at the annual meeting, in person or by proxy, of the holders of a majority of the shares of NextEra Energy common stock issued and outstanding on the record date will constitute a quorum, permitting the business of the meeting to be conducted.

As of the record date, 468,168,428 shares of NextEra Energy common stock, representing the same number of votes, were outstanding. Thus, the presence of the holders of NextEra Energy common stock representing at least 234,084,214 shares will be required to establish a quorum.

In determining the presence of a quorum at the annual meeting, abstentions in person, proxies received but marked as abstentions as to any or all matters to be voted on that permit abstentions, and proxies received with broker non-votes on some but not all matters to be voted on will be counted as present.

A broker “non-vote” occurs when a broker, bank or other holder of record that holds shares for a beneficial owner (“broker”) does not vote on a particular proposal because the broker has not received voting instructions from the beneficial owner and does not have discretionary voting power for that particular proposal. Brokers may vote on ratification of the appointment of NextEra Energy’s independent registered public accounting firm even if they have not received voting instructions from the beneficial owners whose shares they hold. However, brokers may not vote on any of the other matters submitted to shareholders at the 2017 annual meeting unless they have received voting instructions from the beneficial owner. See the response toWhat vote is required to approve the matters proposed? below for a discussion of the effect of broker non-votes.

What is the difference between holding shares as a shareholder of record and as a beneficial owner?

If your shares are registered directly in your name with NextEra Energy’s transfer agent, Computershare, you are considered, with respect to those shares, the “shareholder of record.” The Notice or, for some shareholders of record, a full set of the proxy materials has been sent directly to you by or on behalf of NextEra Energy.

If your shares are held in “street name,” you are considered the “beneficial owner” of the shares. The Notice or, for some beneficial owners, a full set of the proxy materials has been forwarded to you by or on behalf of your broker, who is considered, with respect to those shares, the shareholder of record.

How do I submit my proxy or voting instructions?

On the Internet or by telephone or, if you received the proxy materials by mail, also by mailMeeting Information

 

Time and Date:

  

On8:00 a.m., Central time, May 21, 2020

Place:

Hyatt Regency Hill Country

9800 Hyatt Resort Drive

San Antonio, Texas

As part of our precautions regarding the Internet—Youcoronavirus or COVID-19, we are planning for the possibility that the 2020 annual meeting may submit yourbe held virtually over the internet. If we decide to hold a virtual annual meeting, we will announce the decision to do so in advance and details on how to participate will be issued by press release, posted on our website and filed with the SEC as additional proxy or voting instructions onmaterial.

Record Date:

March 23, 2020

Webcast:

The Company will provide a live audio webcast of the Internet 24 hours a dayannual meeting from its website athttp://www.nexteraenergy.com.

Voting:

Shareholders as of the record date are entitled to vote. Each share of common stock, par value $.01 per share (“common stock”), is entitled to one vote for each director nominee and up until 11:59 p.m., Eastern time, on Wednesday, May 17, 2017 by goingone vote for each of the other properly presented proposals to be voted.

Admission:

An admission ticket is required to enter the annual meeting. See page 92 in thewww.proxyvote.comQuestions and Answers about the Annual Meeting and following the instructions on your screen. Please have your Notice or proxy/confidential voting instruction card available when you access the web page. If you hold your shares in “street name,” your broker, bank, trustee or other nominee may provide additional instructions to yousection regarding how to submit your proxy or voting instructions on the Internet.obtain a ticket.

By Telephone—You may submit your proxy or voting instructions by telephone by calling the toll-free telephone number (800-690-6903) found on your proxy/confidential voting instruction card or in your Internet instructions, 24 hours a day and up until 11:59 p.m., Eastern time, on Wednesday, May 17, 2017, and following the prerecorded instructions. Please have your proxy/confidential voting instruction

3


card or Notice and instructions provided on the Internet available when you call. If you hold your shares in “street name,” your broker, bank, trustee or other nominee may provide additional instructions to you regarding how to submit your proxy or voting instructions by telephone.

By Mail—If you received the proxy materials by mail, you may submit your proxy by mail by marking the enclosed proxy/confidential voting instruction card, dating and signing it, and returning it in the postage-paid envelope provided to NextEra Energy, Inc. Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. Your proxy/confidential voting instruction card must be received no later than Wednesday, May 17, 2017. If you hold your shares in “street name,” your broker, bank, trustee or other nominee may provide additional instructions to you regarding voting your shares by mail.

Please see the Notice, your proxy/confidential voting instruction card or the information your broker provided to you for more information on your options. NextEra Energy’s proxy tabulator, Broadridge Investor Communications Solutions, Inc. (“Broadridge”), must receive any proxy/confidential voting instruction card that will not be delivered in person at the annual meeting, or any vote on the Internet or by telephone, no later than 11:59 p.m., Eastern time, on Wednesday, May 17, 2017.

If you are a shareholder of recordVoting Matters and you return your signed proxy/confidential voting instruction card or submit your proxy on the Internet or by telephone, but do not indicate your voting preferences, the persons named as proxies in the proxy/confidential voting instruction card will vote the shares represented by that proxy as recommended by the Board on all proposals.

In person at the annual meeting

All shareholders may vote in person at the annual meeting. However, if you are a beneficial owner of shares, you must obtain a legal proxy from your broker and present it to the inspector of election with your ballot to be able to vote in person at the annual meeting. See the response toWho may attend the annual meeting? above for additional information on how to attend the annual meeting.

Your vote is important. You can save us the expense of a second mailing and further solicitation of proxies by submitting your proxy or voting instructions promptly.

May I change my vote after I submit my proxy or voting instructions on the Internet or by telephone or after I return my proxy/confidential voting instruction card or voting instructions?

Yes. If you are a shareholder of record, you may revoke your proxy before it is exercised by:

providing written notice of the revocation to the Corporate Secretary of the Company at the Company’s offices at P.O. Box 14000, 700 Universe Blvd., Juno Beach, Florida 33408-0420;

making timely delivery of later-dated voting instructions on the Internet or by telephone or, if you received the proxy materials by mail, also by making timely delivery of a valid, later-dated proxy/confidential voting instruction card; or

voting by ballot at the annual meeting, although please note that attendance at the meeting will not by itself revoke a previously granted proxy.

You may change your proxy by using any one of these methods regardless of the method you previously used to submit your proxy.

If you are a beneficial owner of shares, you may submit new voting instructions by contacting your broker. You may also vote in person at the annual meeting if you obtain a legal proxy as described in the answer to the previous question.

All shares for which proxies have been properly submitted and not revoked will be voted at the annual meeting.

4


How do I vote my Employee Retirement Savings Plan (401(k)) shares?

If you participate in the NextEra Energy, Inc. Employee Retirement Savings Plan (the “plan”), you may give voting instructions to Fidelity Management Trust Company, as trustee of the plan (“Trustee”). If you are a non-bargaining NextEra Energy employee, or a bargaining unit employee outside the state of Florida, you may give your voting instructions to the Trustee by following the instructions you received in an e-mail from NEXTERA ENERGY, INC. [id@ProxyVote.com] sent to your work e-mail address (unless you opted to receive a paper copy of the proxy materials). If you are a Florida Power & Light Company (“FPL”) bargaining unit employee in Florida, or a participant in the plan who is not a current employee of NextEra Energy or its subsidiaries, or if you opted out of e-mail delivery, you may give your voting instructions to the Trustee on the Internet or by telephone by following the instructions on your proxy/confidential voting instruction card, or you may give your voting instructions to the Trustee by mail by completing and returning the proxy/confidential voting instruction card accompanying this proxy statement.

Your instructions will tell the Trustee how to vote the number of shares of NextEra Energy common stock in the plan reflecting your proportionate interest in the NextEra Energy Stock Fund and the NextEra Energy Leveraged ESOP Fund. You have this right because the plan deems you to be a “named fiduciary” of the shares of common stock allocated to your account for voting purposes. Your instructions will also determine the vote of a proportionate number of shares of common stock in the NextEra Energy Leveraged ESOP Fund which are not yet allocated to participants. If you do not give the Trustee voting instructions, the number of shares reflecting your proportionate interest in the NextEra Energy Stock Fund and the NextEra Energy Leveraged ESOP Fund will be voted by the Trustee in the same manner as it votes proportionate interests for which it receives voting instructions and your proportionate share of the unallocated NextEra Energy Leveraged ESOP Fund shares will be voted by the Trustee in the same manner as it votes unallocated shares for which instructions are received. The Trustee will vote your shares in accordance with your duly executed instructions received by 1:00 a.m., Eastern time, on Tuesday, May 16, 2017.

You may also revoke previously given voting instructions by 1:00 a.m., Eastern time, on Tuesday, May 16, 2017, by filing written notice of revocation with the Trustee or by giving new voting instructions in any of the ways described above. The Trustee will follow the last timely voting instructions which it receives from you. Your voting instructions will be kept confidential by the Trustee.

What is “householding” and how does it affect me?

NextEra Energy has adopted a procedure approved by the SEC called “householding.” Under this procedure, shareholders of record who have the same address and last name and do not participate in electronic delivery of proxy materials will receive only one package containing individual copies of the Notice or proxy materials in paper form for each shareholder of record at the address. This procedure will reduce the volume of duplicate materials shareholders receive, conserve natural resources and reduce NextEra Energy’s postage costs. Shareholders who participate in householding and to whom a full set of proxy materials has been mailed will continue to receive separate proxy cards.

If you are a shareholder of record and are eligible for householding, but you and other shareholders of record with whom you share an address currently receive multiple packages containing copies of the Notice or proxy materials in paper form, or if you hold shares in more than one account, and in either case you wish to receive only a single package for your household in the future, please contact Computershare in writing at Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078 or by calling 888-218-4392. You may contact Computershare at the same mailing address or telephone number if you wish to revoke your consent to future householding mailings.

If your household receives only a single package containing a copy of the Notice or the proxy materials, and you wish to receive a separate copy for each shareholder of record, please contact Broadridge toll-free at 800-542-1061, or write to Broadridge, Householding Department, 51 Mercedes Way, Edgewood, NY 11717, and separate copies will be provided promptly.

5


Beneficial owners may request information about householding from their banks, brokers or other holders of record.

What are the Board’s recommendations?

Unless you give other instructions, the persons named as proxies will vote in accordance with the recommendations of the Board. The Board’s recommendations are set forth together with the description of each proposal in this proxy statement. In summary, the Board recommends a vote:

FOR election as directors of the nominees specified in this proxy statement. (See Proposal 1)

FOR ratification of appointment of Deloitte & Touche LLP as NextEra Energy’s independent registered public accounting firm for 2017. (See Proposal 2)

FOR approval, by non-binding advisory vote, of NextEra Energy’s compensation of its named executive officers as disclosed in this proxy statement. (See Proposal 3)

FOR1 YEAR as the frequency with which NextEra Energy will hold a non-binding shareholder advisory vote to approve NextEra Energy’s compensation of its named executive officers. (See Proposal 4)

FOR approval of the NextEra Energy, Inc. 2017 Non-Employee Directors Stock Plan. (See Proposal 5)

AGAINST the shareholder proposal. (See Proposal 6)

In accordance with the discretion of the persons acting under the proxy concerning such other business as may properly be brought before the annual meeting or any adjournment or postponement thereof.

What vote is required to approve the matters proposed?Recommendations

 

  Voting Matters

  

Election as directors of the nominees specified in this proxy statement—A nominee for director will be elected to the Board if the votes cast for such nominee’s election by shareholders present in person or represented by proxy at the meeting and entitled to vote on the matter exceed the votes cast by such shareholders against such nominee’s election. If you are a beneficial owner, your broker is not permitted under New York Stock Exchange (“NYSE”) rules to vote your shares on the election of directors if your broker does not receive voting instructions from you. Without your voting instructions, a broker non-vote will occur. Since broker non-votes are not considered votes cast, they will have no legal effect on the election of directors. Abstentions are also not considered votes cast and will have no legal effect on the election of directors. SeeDirector Resignation Policy in the section entitledCorporate Governance and Board Matters for information about NextEra Energy’s policy if a nominee for director fails to receive the required vote.

Vote
Recommendation
 Page
Reference

Proposal 1 – Election of directors

FOR each nominee5

Proposal 2Ratification of appointment of Deloitte & Touche LLP as NextEra Energy’s independent registered public accounting firm for 2017—The ratification of appointment of Deloitte & Touche LLP as NextEra Energy’s independent registered public accounting firm for 2017 will be approved if the votes cast for the proposal by shareholders present in person or represented by proxy at the meeting and entitled to vote on the matter exceed the votes cast by such shareholders against such proposal (a “Majority Vote”). Since brokers are permitted under NYSE rules to vote your shares on this proposal even if your broker does not receive voting instructions from you, there are not expected to be broker non-votes on this proposal. Abstentions are not considered votes cast and will have no legal effect on whether this proposal is approved.2020

  

Advisory approval of NextEra Energy’s compensation of its named executive officers as disclosed in this proxy statement—A Majority Vote is required to approve this non-binding advisory proposal. If your broker does not receive voting instructions from you, your broker is not permitted under NYSE rules to vote your shares on this proposal. Without your voting instructions, a broker non-vote will occur. Since broker non-votes are not considered votes cast, they will have no legal effect on whether this proposal is approved. Abstentions are also not considered votes cast and will have no legal effect on whether this proposal is approved. The vote on this proposal is advisory and the result of the vote on this

FOR
15

6


 

proposal will not be binding on the Company, the Compensation Committee or the Board. However, the Compensation Committee will be able to consider the result of the vote when making future decisions regarding named executive officer compensation.

 

Proposal 3Advisory vote on the frequency with which NextEra Energy will hold a non-binding shareholder advisory vote to approve NextEra Energy’s compensation of its named executive officers

FOR16

Proposal 4—Generally, approval of any matter presented to shareholders requires a Majority Vote. However, because this vote is intended to indicate the preference of the Company’s shareholders for the frequency of a non-binding advisory vote on the compensation of NextEra Energy’s named executive officers (“NEOs”), the frequency option—1, 2 or 3 years—receiving the greatest number of votes will be considered the frequency preferred by the Company’s shareholders. If your broker does not receive voting instructions from you, your broker is not permitted under NYSE rules to vote your shares on this proposal. Without your voting instructions, a broker non-vote will occur. Since broker non-votes are not votes cast, they will have no legal effect on the voting results for this proposal. Abstentions are also not considered votes cast and will have no legal effect on the voting results for this proposal. Although this vote is not binding on the Company or the Board, the Board will take into consideration the outcome of the vote in making a determination on the frequency of future advisory votes to approve named executive officer compensation. – Shareholder Proposal

AGAINST17

Proposal 5 – Shareholder Proposal

AGAINST21

How to Vote

 

LOGO

    

By Internet – Go to the websiteApprovalwww.proxyvote.com, 24 hours a day, seven days a week. You will need the control number that appears on your proxy card or on your Notice of the NextEra Energy, Inc. 2017 Non-Employee Directors Stock Plan—A Majority Vote is required to approve this proposal. If your broker does not receive voting instructions from you, your broker is not permitted under NYSE rules to vote your shares on this proposal. Without your voting instructions, a broker non-vote will occur. Since broker non-votes are not considered votes cast, they will have no legal effect on whether this proposal is approved. Abstentions are also not considered votes cast and will have no legal effect on whether this proposal is approved.Internet Availability of Proxy Materials (the “Notice”).

 

LOGO

    

Shareholder proposalBy Telephone—A Majority Vote is required – Call1-800-690-6903, 24 hours a day, seven days a week. You will need the control number that appears on your proxy card or notice.

LOGO

By Mail – If you received a full paper set of materials, date and sign your proxy card exactly as your name appears on your proxy card and mail it in the enclosed, postage-paid envelope. If you received the Notice, you may request a proxy card by following the instructions in your Notice. You do not need to approvemail the shareholder proposal. If your broker does not receiveproxy card if you are voting instructions from you, your broker is not permitted under NYSE rules to vote your shares onby internet or telephone.

LOGO

In person – At the shareholder proposal. Without your voting instructions on the shareholder proposal, a broker non-vote will occur. Since broker non-votes are not considered votes cast, they will have no legal effect on whether the shareholder proposal is approved. Abstentions are also not considered votes cast and will have no legal effect on whether the shareholder proposal is approved.annual meeting.

 

1

Who pays for the solicitation of proxies?

NextEra Energy is soliciting proxies, and it will bear the expense of solicitation. Proxies will be solicited principally by mail and by electronic media, although directors, officers and employees of NextEra Energy or its subsidiaries may solicit proxies personally, by telephone or by electronic means, but without compensation other than their regular compensation. NextEra Energy has retained D.F. King & Co., Inc. to assist it in the solicitation of proxies, for which D.F. King & Co., Inc. will be paid a fee of $12,500 plus reimbursement of out-of-pocket expenses. NextEra Energy will reimburse custodians, nominees and other persons for their out-of-pocket expenses in sending the Notice and/or proxy materials to beneficial owners.

Could other matters be decided at the annual meeting?

At the date of printing of this proxy statement, the Board did not know of any matters to be submitted for action at the annual meeting other than those referred to in this proxy statement and does not intend to bring before the meeting any matter other than the proposals described in this proxy statement. If, however, other matters are properly brought before the annual meeting, or any adjourned or postponed meeting, your proxies include discretionary authority on the part of the individuals appointed to vote your shares or act on those matters according to their discretion, including voting to adjourn or postpone the annual meeting one or more times to solicit additional proxies with respect to any proposal or for any other reason.

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2016 BUSINESS AND GOVERNANCE HIGHLIGHTSBusiness and Governance Highlights

2016 Business Highlights

NextEra Energy achieved Company-record adjusted earnings* of $2.9$4.062 billion, adjusted earnings per share* (“EPS”) of $6.19$8.37 and a1-year total shareholder return (“TSR”) of 18.4%43%. The Company’s 2016NextEra Energy’s 2019 TSR outperformed the 2016 TSRsTSR of the S&P 500 Utilities Index of 16.3%26% and the TSR of the S&P 500 Index of 12.0%.32% for 2019.

These significant accomplishments came as NextEra Energythe Company continued to be a leader among the 10 largest U.S. utilities (based on market capitalization) in substantially all financial metrics. Among thethese largest 10 U.S. utilities, NextEra Energy ranked #3 for 3-year TSR, #1 for 5-year2-,3-,5-,7- and10-year TSR #1 for 10-year TSR, #2 for 3-year adjusted earnings per share (“EPS”) growth and #1 for 5-year, 7-year3-,5-,7- and10-year adjusted EPS growth. In 2016,2019, NextEra Energy ranked #1 among U.S. and global utility companies, based on market capitalization.**

In 2017,2020, NextEra Energy was named by Fortune Magazine as the World’s Most Admired Electric & Gas Utility for the tenth13th time in the last eleven14 years. Also in 2017,2020, NextEra Energy was named by the Ethisphere Institute as one of the World’s Most Ethical Companies for the tenth13th time in the last eleven14 years.

The returns that NextEra Energy generated for its shareholders were attributable to outstanding 20162019 performance by the Company’s two principal operating businesses, FPLFlorida Power & Light Company (“FPL”) and NextEra Energy Resources, LLC whichand its subsidiaries (“NextEra Energy Resources”). Highlights of this performance are described in more detail in the CD&ACompensation Discussion & Analysis beginning on page 44.37.

Ultimately, the Company’s financial and operational performance is reflected in the increased value of its common stock. As the table on page 4539 illustrates, TSR over the three-year period from December 31, 20132016 to December 31, 20162019 was 53%119%, meaning that an investment of $100 in NextEra Energy common stock on December 31, 20132016 was worth $152.61$219.15 on December 31, 2016.

2016 Governance Highlights2019.

The Company is proudchart below compares the Company’s TSR for the1-,3-,5- and10-year periods ended December 31, 2019 to havethe TSRs of the S&P 500 Electric Utilities Index, the S&P 500 Utilities Index, the Philadelphia Exchange Utility Sector Index (“UTY”) and the S&P 500. NextEra Energy outperformed all of these indices over all of the periods shown. NextEra Energy’s outperformance over all of these periods in place strong corporate governance practices. These include:comparison to others in its industry, and over the1-,3-,5- and10-year periods in comparison to the S&P 500, was substantial.

NextEra Energy Total Shareholder Return Through12-31-19 vs. Various Indices (1)

 

Eleven of twelve directors are independent. The CEO is the only management director.

     
   1-year TSR  3-year TSR  5-year TSR  10-year TSR 
     

NextEra Energy

  43  119  161  530
     

S&P 500 Electric Utilities Index, total return

  27  47  60  182
     

S&P 500 Utilities Index, total return

  26  48  63  205
     

UTY, total return

  27  48  63  192
     

S&P 500, total return

  32  53  74  257

 

The Board has an independent lead director.

The independent directors meet in executive sessions after each regularly scheduled Board meeting without management present. The Lead Director presides over these executive sessions. Board committees have executive sessions after regularly scheduled in-person committee meetings.

The Company has rigorous share ownership requirements for both non-employee directors and executives and prohibits short sales, hedging and margin accounts.

The Company does not have a shareholder rights (“poison pill”) plan.

The Company has no supermajority vote requirements in its Articles of Incorporation.

Shareholders holding 20% of the outstanding shares may call a special meeting.

All directors stand for election annually.

Non-employee directors may not serve on more than four public company boards.

(1)

Source: FactSet Research Systems Inc.; except UTY, source: Bloomberg

 

*

This measure isThese measures are not a financial measuremeasures calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). See Appendix BA to this proxy statement for a reconciliation of this thesenon-GAAP financial measuremeasures to the most directly comparable GAAP financial measure.measures.

**

Market capitalization is as of December 31, 2016;2019; rankings are sourced from Bloomberg and FactSet Research Systems Inc.

2


Governance Highlights

 

Director Independence

   Twelve of thirteen director nominees are independent

   Chief Executive Officer (“CEO”) is the only management director

   All members of Board committees (other than the Executive Committee) are independent directors

Board Leadership

   Independent Lead Director selected by the independent directors

   Lead Director has strong role and significant governance duties, including chairing regularly- scheduled executive sessions of independent directors

   Approved the Company’s enhanced Political Engagement Policy

Board Accountability

   All directors stand for election annually and the Board has adopted a resignation policy for directors  who fail to receive the required vote in uncontested elections

   Simple majority voting standard for all uncontested director elections

   Shareholders of 20% or more of the outstanding shares may call a special meeting

   No shareholder rights (“poison pill”) plan

   No supermajority vote requirements in the Company’s Articles of Incorporation

Board Evaluation and Effectiveness

   Annual Board and committee self-assessments

   Annual independent director evaluation of the Chairman and CEO

Board Refreshment & Diversity

   Balance of new and experienced directors, with tenure of current directors averaging nine years

   Since 2018, added two new independent directors, including a diverse director

   Added seven new directors in the last eight years and have a specified retirement age for directors

   Six of fourteen directors are women or ethnically diverse and average age of directors is 65 years old

Director Engagement

   Each director attended more than 94% of Board and their assigned committee meetings and attended  the annual meeting in 2019

   Board policy limitsnon-employee director membership on other public company boards to three

Clawback and Anti-Hedging Policies

   Recoupment or clawback policy to recover certain executive pay

   Policy prohibiting short sales, hedging and margin accounts

Share Ownership

   CEO required to hold shares equivalent to 7x base salary

   All senior executives required to hold shares equivalent to 3x base salary

   Directors required to hold shares equivalent to 7x the cash portion of their annual retainer

Proxy Access

   Available to a shareholder, or group of up to 20 shareholders, owning 3% of the Company’s  outstanding shares for at least three years

   May nominate candidates for the greater of two directorships or up to 20% of the membership of the  Board

8

3


In uncontested elections, directors must be elected by2019 Governance Highlights

The Company received a majorityshareholder proposal at its 2019 annual meeting of shareholders (“2019 annual meeting”) requesting increased disclosure of political contributions and expenditures. That proposal received the support of approximately 48.7% of the votes cast.

Following the 2019 annual meeting, the Company engaged in an extensive shareholder outreach program to better understand shareholder views on political expenditures and associated disclosures. During its outreach program, the Company ultimately engaged with 25 of its largest shareholders, representing more than 40% of the Company’s outstanding shares. In response to feedback gathered from its outreach efforts, as described in more detail below, the Company enhanced its Political Engagement Policy which governs the Company’s political contributions and expenditures. The Company also increased its disclosure of its political contributions and expenditures.

During the outreach process, shareholders expressed a primary concern of ensuring there was formalized Board committees engageoversight of the Company’s engagement in annual self-assessmentsthe political process. In response, the Company formalized board-level oversight of its political expenditures and disclosures and enhanced its Political Engagement Policy (available on its website1) to give specific responsibility to the Board annually reviews its effectiveness.

TheBoard’s Governance and Nominating Committee, engages in a continuous processcomposed entirely of assessing whether current Board members provideindependent directors, to review at least annually the mix of skills and experience neededfollowing political activities: contributions by The NextEra Energy, Inc. Political Action Committee (“Company PAC”); contributions by the Board.Company to political candidates and committees; the Company’s contributions to all U.S.tax-exempt organizations that are primarily engaged in political activities; and the Company’s significant trade association memberships and dues. In addition, the Company now discloses on its website trade association dues in excess of $25,000 and the portion allocable to federal lobbying activities.

Shareholders also indicated that oversight should include a review of the Company’s memberships in trade associations to ensure that the trade associations’ public policy positions or participation in political processes are appropriately aligned with the Company’s corporate strategy. As a result, the enhanced Political Engagement Policy requires an annual review of significant trade association memberships by the Company’s Vice President, Government Affairs-Federal to ensure that the Company’s trade association participation aligns with its corporate strategy. Any policy positions of these organizations that may be in conflict with the Company’s strategy and objectives will be reviewed with the Company’s Chairman and Chief Executive Officer to ensure that participation in these organizations continues to provide an overall benefit to the Company.

Also in response to shareholder feedback, the Political Engagement Policy was amended to require the Company “to publicly disclose on its website, within 180 days after the end of each calendar year, its annual Significant Trade Association Dues, its expenditures for federal and state lobbying and contributions from the Company PAC, among other pertinent information.” As a result, the Company now discloses on its website2 specific contributions by the Company PAC to federal candidates, federal committees, state candidates and state committees; Company lobbying reports submitted for state lobbying activities; federal lobbying disclosures; links to Federal Election Commission and Lobbying Disclosure Act reports; and links to over 30 state lobbying registration commissions. Although much of this process, five new members have joinedinformation was previously publicly available, the Board since July 2012.Company website now aggregates this wide-ranging information, making it more easily accessible by shareholders.

The Company will continue its outreach during 2020 on this and other governance topics.

1

http://www.investor.nexteraenergy.com/~/media/Files/N/NEE-IR/corporate-governance/political-engagement-policy/2019/NextEra%20Energy%20Political%20Engagement%20Policy%2010-2019.pdf

2

http://www.investor.nexteraenergy.com/corporate-governance/corporate-political-engagement

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Business of the Annual Meeting

 

As discussed below, the Company’s Amended and Restated Bylaws (the “Bylaws”) allow for shareholder proxy access nominees.

Recent changes to the Company’s Articles of Incorporation and Bylaws demonstrate the active engagement of the Board and management in ensuring a responsive governance program.

The Board, through the Governance & Nominating Committee, engages in a comprehensive review of its governance practices. As a part of these reviews, the Company regularly initiates outreach discussions with shareholders owning a significant aggregate ownership interest in the Company to solicit input on the Company’s governance. In 2016, as a result of these reviews and discussions, and taking into account a shareholder proposal approved at the 2016 annual meeting, the Board adopted an amendment to the Company’s Bylaws to permit qualifying shareholders to include nominees for election to the Board in the Company’s annual proxy statement (“Proxy Access Bylaw”). The Proxy Access Bylaw permits a shareholder, or group of up to 20 shareholders, owning continuously for three years 3% or more of NextEra Energy’s outstanding common stock to nominate and have NextEra Energy include in its proxy materials director nominees for the greater of two directorships or 20% of the total number of directors, so long as any such shareholder or group of shareholders and their nominee or nominees have satisfied the requirements set forth in the Bylaws.

BUSINESS OF THE ANNUAL MEETING

Proposal 1: Election as directors of the nominees specified in this proxy statement

The Board is currently composed of 1214 members. One member of the Board, Hansel E. Tookes, II, has reached retirement age and the Board will be reduced to 13 members. Upon the recommendation of the Governance & Nominating Committee, the Board has nominated the 1213 incumbent members listed below for election as directors at the 20172020 annual meeting. Unless you specify otherwise, in your proxy/confidential voting instruction card or in the voting instructions you submit on the Internet or by telephone, your proxy will be votedFOR the election of the listed nominees. If any nominee becomes unavailable for election, which is not currently anticipated, proxies instructing a vote for that nominee may be voted for a substitute nominee selected by the Board or, in lieu thereof, the Board may reduce the number of directors by the number of nominees unavailable for election.

The Board believes that the Board membership at its current size is appropriate because such a Board sizeit facilitates substantive discussions among Board members, provides for sufficient staffing of Board committees and allows for contributions by directors having a broad range of skills, expertise, industry knowledge and diversity of opinion. Directors serve until the next annual meeting of shareholders or until their respective successors are elected and qualified.

Board Refreshment and Diversity

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Director Qualifications.Board Refreshment. The Board and the Governance & Nominating Committee engage in a continuous process of considering the mix of skills and experience needed by the Board as a whole to discharge its responsibilities. During the period from July 2012 to February 2015, five new members joined the Board, adding significantly to the skills, expertise and experience of the Board. In October 2018, the Board increased its size and the size of the Audit Committee by one member and appointed a new individual to the Board and the Audit Committee. In February 2020, the Board similarly increased its size and the size of the Finance & Investment Committee by one member and appointed a new individual to fill these vacancies.

The Company also has a director retirement policy. Generally, no person who has attained the age of 72 years by the date of election is eligible for election as a director. However, the Board may, by unanimous action (excluding the affected director), extend a director’s eligibility for one or two additional years, in which event the director will not be eligible for subsequent election as a director if he or she would have attained the age of 73 or 74 by or prior to the date of the election.

Diversity. Diversity is among the factors that the Governance & Nominating Committee considers when identifying and evaluating potential Board nominees. NextEra Energy, Inc.’s Corporate Governance Principles & Guidelines (the “Governance Guidelines”) provide that, in identifying nominees for director, the Company seeks to achieve a mix of directors representing a diversity of background and experience, including diversity with respect to age, gender, race, ethnicity and specialized experience. In the Board’s annual self-evaluation, it reviews the criteria for skills, experience and diversity reflected in the Board’s membership and also reviews the Board’s process for identification, consideration, recruitment and nomination of prospective Board members.

David L. Porges, who was appointed to the Board in February 2020, is a nominee for election to the Board this year who previously has not been elected by the Company’s shareholders. Mr. Porges was identified to the Governance & Nominating Committee as an individual that the Governance & Nominating Committee might wish to consider as a potential candidate for Board service. Mr. Porges was interviewed by each of the members of the Governance & Nominating Committee and by Mr. Robo. The Governance & Nominating Committee then evaluated the qualifications, background and experience of Mr. Porges using the criteria set forth in the Governance Guidelines discussed above, noting in particular that Mr. Porges would provide expertise beneficial to the Company in the areas of operations and leadership in the energy industry as a

5


result of his experience as a senior leader of a publicly traded, integrated natural gas production and transportation business. Following the evaluation by the Governance & Nominating Committee, Mr. Porges was interviewed by the other members of the Board. The Governance & Nominating Committee then recommended Mr. Porges for appointment to the Board and the Board approved Mr. Porges’ appointment to the Board at its regularly scheduled February meeting.

Identifying and Evaluating Nominees for Directors

The Governance & Nominating Committee uses a variety of methods for identifying and evaluating nominees for director. The Governance & Nominating Committee periodically assesses the appropriate size of the Board and whether any vacancies on the Board are expected due to retirement or otherwise. Candidates may come to the attention of the Governance & Nominating Committee through current Board members, professional search firms, shareholders or other persons. Candidates are evaluated at regular or special meetings of the Governance & Nominating Committee and may be considered at any time during the year. When considering candidates for the Board, the Governance & Nominating Committee considers all nominee recommendations, including those from shareholders, in the same manner. If any materials are provided by a shareholder in connection with the nomination of a director candidate, the materials are provided to the Governance & Nominating Committee. The Governance & Nominating Committee also reviews materials provided by professional search firms or other parties. In evaluating nominations, the Governance & Nominating Committee seeks to achieve a diverse balance of knowledge, experience and capability.

Director Resignation Policy

Under the NextEra Energy, Inc. Amended and Restated Bylaws (the “Bylaws”), in an uncontested election, directors are elected by a majority of the votes cast. The Board has adopted a Policy on Failure of Nominee Director(s) to Receive a Majority Vote in an Uncontested Election (“Director Resignation Policy”), the effect of which is to require that, in any uncontested director election, any incumbent director who is not elected by the required vote must offer to resign and the Board will determine whether or not to accept the resignation within 90 days of the certification of the shareholder vote. The Company will report the action taken by the Board under the Director Resignation Policy in a publicly-available forum or document. The Bylaws provide that, in a contested election, director nominees are elected by a plurality of the votes cast.

Director Qualifications

The Governance Guidelines and the Governance & Nominating Committee Charter copies of which are available on the Company’s website atwww.nexteraenergy.com/investors/governance.shtml, identify Board membership qualifications, including experience, skills and attributes, that are considered by the Governance & Nominating Committee in recommendingnon-employee nominees for Board membership. In addition to the membership qualifications identified in the Governance Guidelines, no person will be considered for Board membership who is an employee or director of a business in significant competition with the Company or of a major or potentially-major customer, supplier, contractor, counselor or consultant of the Company, or an executive officer of a business where a Company employee-director serves on the board of such other business.

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The Board views itself as a cohesive whole consisting of members who together serve the interests of the Company and its shareholders. Qualifications, attributes and other factors considered byThe following matrix highlights the Governance & Nominating Committee in recommending director nominees include, but are not limited to, the following:

experience at a strategy and/or policy setting level, or high-level managerial experience in a relatively complex business, government or other organization, or other similar and relevant experience in dealing with complex problems;

sufficient time to devote to the Company’s affairs (including by limiting service on boards of public companies to no more than four public companies, including the Company);

character and integrity;

an inquiring mind and good judgment;

an ability to work effectively with others;

the individual’s contribution to the achievement of a mix of directors who represent a diversity of background and experience, including age, gender, race, ethnicity and specialized experience;

an ability to represent the balanced interests of the Company’s shareholders as a whole, rather than special constituencies;

the individual’s independence as described in applicable listing standards, legislation, regulations and the Corporate Governance Principles & Guidelines;

the extent of the individual’s business experience, technical expertise or specialized skills or experience, and whether the individual, by virtue of particular experience relevant to NextEra Energy’s current or future business, will add specific value as a Board member; and

whether the individual would be considered an “audit committee financial expert” or “financially literate” as described in applicable listing standards or regulations.

As discussed more specifically below, the Governance & Nominating Committee considered in particular the contributions to a strong, diverse board of the individual backgrounds and experience of its current directors and nominees including, without limitation, experience in: leading and growing businesses; legislative, political and regulatory affairs; customer and client service; environmental compliance; cyber security and information management; investor relations; international business operations and management; industrial operations; capital raising strategies; executive compensation; renewable energy; nuclear power operations and management; finance; financial instruments, including derivatives; risk management; and strategic planning. The regulated and competitive operations of the Company require an understanding of, among other matters, the regulatory, legislative and political environment affecting public utility and competitive energy operations, the service demands of wholesale and retail power customers, the effect of new technologies on the Company’s strategic direction, the challenges of maintaining growth without sacrificing profitability, the diverse options available for financing the Company’s businesses and the Company’s responsibilities to the customers and communities it serves. The particular experience, qualifications, attributes and skills that led the Governance & Nominating Committee and the Board to conclude, in light of the Company’s businessesdirector nominees. This high-level summary is not intended to be an exhaustive list and structure, thatinformation regarding the experience and qualifications of each currentindividual director nominee is set forth in the biographies which follow.

Summary of Director Qualifications and nominee should serve as a NextEra Energy director include, but are not limited to, the following:Experience

 

Mrs. Barrat has 38 years of leadership experience in financial services, including her service through July 1, 2012 as vice chairman, and her previous service as president of Personal Financial Services (one of four principal business units), of Northern Trust Corporation, a Fortune 500 company. She is

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experienced in building

Public Company CEO ExperienceSeven Directors
Financial Industry Experience and leading client service businesses that operate in a variety of regulatory jurisdictionsLeadershipFour Directors
Strategy ExpertiseNine Directors
Operations Management and as a Florida native with a significant part of her former employer’s business in Florida, has had extensive experience with Florida-based customersLeadershipNine Directors
International ExperienceSeven Directors
Utility / Regulated Industry LeadershipThree Directors
Political / Legislative ExperienceTwo Directors
Energy Industry LeadershipFour Directors
Engineering & Construction Industry ExperienceSix Directors
Nuclear Operations LeadershipTwo Directors
Mergers & Acquisitions ExperienceSeven Directors
Information Technology / Cyber Experience and business conditions. In addition, her 19 years of service on the Board have provided her with knowledgeLeadershipTwo Directors
Investor Relations ManagementSeven Directors
Marketing / Sales / Customer Service Experience and experience regarding the Company’s history and businesses.

Leadership
Seven Directors
DiversitySix Directors
New Business DevelopmentNine Directors
Human Resources DevelopmentThirteen Directors

 

Mr. Camaren has 19 years of leadership experience with a large, regulated investor-owned utility. During the years he served as chairman and chief executive officer, the utility had customer growth at a rate that exceeded the industry average and acquired and integrated over 40 utilities. In addition, Mr. Camaren has experience in managing capital expenditures, environmental compliance, regulatory relations and investor relations.7

Mr. Dunn has extensive experience in investment, asset and risk management gained through his 16-year career at Miller, Anderson & Sherrerd and its successor by merger, Morgan Stanley Investment Management. In addition, he is an expert in financial economics, having taught that subject as a professor at, and Dean of, the David A. Tepper School of Business at Carnegie Mellon University. Mr. Dunn has a Ph.D. in industrial administration.

Mr. Gursahaney has extensive operations, strategic planning and leadership experience in global manufacturing and services businesses serving residential, commercial, industrial and governmental customers gained as the chief executive officer of a public company providing security systems and service. He also has extensive global operations, information technology and service experience gained as the president and chief executive officer of the Asia-Pacific division of a medical diagnostic and imaging manufacturer. He has a MBA from the University of Virginia and a Bachelor of Science in Mechanical Engineering from The Pennsylvania State University.

Mr. Hachigian has extensive leadership, operations and strategic planning experience gained through his prior service as the chairman, chief executive officer and president of a global, publicly held manufacturer of electrical equipment and tools. He also has international leadership and operations experience gained through his prior service as the president and chief executive officer of the Asia-Pacific operations of a lighting products manufacturer and in key management positions in Singapore and Mexico. In addition, Mr. Hachigian has financial and risk oversight experience developed through his prior service on the audit committee of another public company and as a prior member of the board of the Houston branch of the Federal Reserve Bank of Dallas. He has a MBA in finance from the Wharton School of Business and a bachelor’s degree in engineering from the University of California (Berkeley).

Ms. Jennings has extensive legislative and political experience, gained through service for four years as Lieutenant Governor of the State of Florida and 24 years in the Florida legislature. She also served as a member of Florida Governor Rick Scott’s transition team. In addition, through her 20 years as president and ten years as chairman of Jack Jennings & Sons, Inc., she has extensive experience in operating a Florida-based business and familiarity with the Florida business environment.

Ms. Lane has 26 years of leadership experience with financial services, capital markets, finance and accounting, capital structure, acquisitions and divestitures in the financial services industry as well as extensive experience in management, leadership and strategy. Ms. Lane served as a managing director and group leader of the global Retailing Investment Banking Group at Merrill Lynch & Co., Inc., from 1997 until her retirement in 2002. In that role, she led and worked on mergers and acquisitions and equity and debt transactions for a wide range of major retailers. Prior to joining Merrill Lynch, she was a managing director at Salomon Brothers, Inc., which she joined in 1989 and where she founded and led the retail industry investment banking unit. Ms. Lane has a MBA from the Wharton School of Business.

Mr. Robo, NextEra Energy’s chairman, president and chief executive officer, previously served as the Company’s vice president of corporate development and strategy, as president of NextEra Energy’s competitive energy subsidiary, NextEra Energy Resources, LLC (“NextEra Energy Resources”), and as the Company’s chief operating officer. As a result of his service in his current and prior positions,

11


Mr. Robo has extensive experience in operations, strategic planning, risk management and mergers and acquisitions. He also has experience in financial and risk oversight, both through his position with the Company and his service as chairman of the audit committee of another public company, and in corporate governance, through his service on the nominating and corporate governance committee of that public company. Prior to joining NextEra Energy, Mr. Robo was president and chief executive officer of a major division of General Electric Capital Corporation, a subsidiary of General Electric Company (“GE”). He also served as chairman and CEO of GE Mexico and was a member of the GE corporate development team. Prior to joining GE, he was vice president of Strategic Planning Associates, a management consulting firm. Mr. Robo has a B.A. degree from Harvard College and a MBA from Harvard Business School.

Mr. Schupp has 33 years of leadership experience as a chief executive officer of both public and private banking organizations, and has experience in reviewing the financial statements of complex businesses, in mergers and acquisitions, in developing and implementing capital raising strategies, in strategic planning and expertise in Florida-based customers and business conditions. In addition, he has experience in such areas as macroeconomic policy, community and economic development and government regulation gained from his service as a director of the Federal Reserve Bank of Atlanta.

Mr. Skolds has extensive leadership experience in the operation and management of nuclear power generation facilities and utilities, and in financial and strategic planning. He retired as executive vice president of Exelon Corporation, a utility services holding company (“Exelon”), and president of Exelon Energy Delivery and Exelon Generation. Earlier in his career, Mr. Skolds worked at SCANA Corporation, an energy-based holding company, in a number of capacities, including president and chief operating officer of South Carolina Electric and Gas. Mr. Skolds also served on the boards of the Institute for Nuclear Power Operations and the Nuclear Energy Institute. Mr. Skolds is a graduate of the United States Naval Academy and spent over five years in the Navy where, among other duties, he operated nuclear submarines. Mr. Skolds also holds a MBA from the University of South Carolina.

Mr. Swanson has 42 years of leadership experience at Raytheon Company (“Raytheon”), a complex public company with international operations. Mr. Swanson served 10 years through September 2014 as Raytheon’s chairman of the board and 10 years through March 2014 as its chief executive officer. He has extensive experience in strategic planning, operations and management, global business operations and complex technologies. He holds a bachelor’s degree in industrial engineering from California Polytechnic State University.

Mr. Tookes has many years of operational leadership in senior management positions at large international public companies, which provided him with leadership, financial and global experience, as well as substantial leadership experience in the management of complex technology businesses. His science, engineering and business education and training have provided him with knowledge relevant to the operation of the Company’s businesses. His public company board experience includes service on the audit, finance, compensation, governance and nominating and business ethics committees of various public companies.

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Listed below are the 12 nominees for election as directors, their ages and principal occupations and certain other information regarding them. Unless otherwise noted, each director has held his or her present position continuously for five years or more and his or her employment history is uninterrupted.

 

LOGO

 

Sherry S. Barrat

 

Age: 70

Director Since: 1998

Public Company Boards:

  Arthur J. Gallagher & Company (since 2013)

  Independent trustee or director of certain
Prudential Insurance
mutual funds (since 2013)

  

Biography

Mrs. Barrat 67, retired in 2012 as vice chairman of Northern Trust Corporation, a financial holding company headquartered in Chicago, Illinois, where she was also a member of Northern Trust’s Management Committee. Prior to being appointed as vice chairman in March 2011, Mrs. Barrat had served as president of Personal Financial Services for Northern Trust since January 2006. She served as chairman and chief executive officer of Northern Trust Bank of California, N.A., from 1999 through 2005 and as president of Northern Trust Bank of Florida’s Palm Beach Region from 1992 through 1998. Mrs. Barrat joined Northern Trust in 1990 in Miami. Mrs. Barrat is a director of Arthur J. Gallagher & Company (since July 2013) and serves as an independent trustee or director of certain Prudential Insurance mutual funds (since January 2013).

Qualifications

Mrs. Barrat has been38 years of leadership experience in financial services, including her service through July 1, 2012 as vice chairman, and her previous service as president of Personal Financial Services (one of four principal business units) of Northern Trust Corporation, a directorFortune 500 company. She is experienced in building and leading client service businesses that operate in a variety of NextEra Energy since 1998.regulatory jurisdictions and, as a Florida native with a significant part of her former employer’s business in Florida, has had extensive experience with Florida-based customers and business conditions. In addition, her 22 years of service on the Board have provided her with knowledge and experience regarding the Company’s history and businesses.

  

 

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James L. Camaren

 

Age: 65

Director Since: 2002

  

Biography

Mr. Camaren 62, is a private investor. Until May 2006, he was chairman and chief executive officer of Utilities, Inc. Utilities, Inc.which was one of the largest investor-owned water utilities in the United States until March 2002 when it was acquired by Nuon, a Dutch company, which subsequently sold Utilities, Inc. in April 2006. He joined Utilities, Inc. in 1987 and served successively as vice president of business development, executive vice president, and vice chairman, becoming chairman and chief executive officer in 1996.

Qualifications

Mr. Camaren has been19 years of leadership experience with a director of NextEra Energy since 2002.large, regulated investor-owned utility. During the years he served as chairman and chief executive officer, the utility had customer growth at a rate that exceeded the industry average and acquired and integrated over 40 utilities. In addition, Mr. Camaren has experience in managing capital expenditures, environmental compliance, regulatory affairs and investor relations.

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Kenneth B. Dunn

 

Age:68

Director Since: 2010

  

Biography

Mr. Dunn 65, is Emeritus Professor of Financial Economics at the David A. Tepper School of Business at Carnegie Mellon University.University (the “Tepper School”). He also served as Dean of the Tepper School from July 2002 to January 2011. Before his service in that position, Mr. Dunn had a16-year career managing fixed income portfolios at Miller Anderson & Sherrerd and its successor by merger, Morgan Stanley Investment Management, where he served as a managing director and asco-director of the U.S. Core Fixed Income and Mortgage teams. Since 2014, he has been a managing member of Tier Capital LLC and, since 2015, chief executive officer of its subsidiary, Traditional Mortgage Acceptance Corporation, which originates, acquires and services mortgage loans and issues Government National Mortgage Association (GNMA) mortgage-backed securities.

Qualifications

Mr. Dunn washas extensive experience in investment and asset and risk management gained through his16-year career at Miller Anderson & Sherrerd and its successor by merger, Morgan Stanley Investment Management. In addition, he is an expert in financial economics, having taught that subject as a directorprofessor at, and Dean of, BlackRock, Inc. from 2005 until 2011. Hethe Tepper School. Mr. Dunn has been a director of NextEra Energy since 2010.Ph.D. in industrial administration.

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Naren K. Gursahaney

 

Age: 58

Director Since: 2014

Public Company Boards:

  The ADT Corporation (2012 – 2016)

  ServiceMaster Global Holdings, Inc. (since 2017)

  

Biography

Mr. Gursahaney 55, is retired. He served as the president and chief executive officer, and a member of the Board of Directors, of The ADT Corporation (“ADT”), a provider of security systems and services, from September 2012 until its acquisition by affiliated funds of Apollo Global Management LLC in May 2016. Prior to ADT’s separation from Tyco International Ltd. (“Tyco”) in September 2012, Mr. Gursahaney served as president of Tyco’s ADT North American Residential business segment and was the president of Tyco Security Solutions, then a provider of electronic security to residential, commercial, industrial and governmental customers and the largest operating segment of Tyco. Mr. Gursahaney joined Tyco in 2003 as senior vice president of Operational Excellence.operational excellence. He then served as president of Tyco Engineered Products and Services and president of Tyco Flow Control. Prior to joining Tyco, Mr. Gursahaney was president and chief executive officer of GE Medical Systems Asia, where he was responsible for the company’s sales and services business in the Asia-Pacific region. During his10-year career with GE, Mr. Gursahaney held senior leadership roles in services, marketing and information management.

Qualifications

Mr. Gursahaney has extensive operations, strategic planning and leadership experience in global manufacturing and services businesses serving residential, commercial, industrial and governmental customers gained as the chief executive officer of a public company providing security systems and service. He also has extensive global operations, information technology and service experience gained as the president and chief executive officer of the Asia-Pacific division of a medical diagnostic and imaging manufacturer. He has been a directorMBA from the University of NextEra Energy since 2014.Virginia and a Bachelor of Science in Mechanical Engineering from Pennsylvania State University.

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Kirk S. Hachigian

 

Age:60

Director Since:2013

Public Company Boards:

  JELD-WEN Holding, Inc.

(since 2014)

  PACCAR, Inc.

(since 2008)

  Allegion plc (since 2013)

  

Biography

Mr. Hachigian 57, has beenserved as chairman of the board ofJELD-WEN inc. Holding, Inc., a manufacturer of windows and doors, sincefrom April 2014 and until November 2015May 2019. He also served as chief executive officer ofJELD-WEN inc. Holding, Inc. from April 2014 until November 2015. He served as chairman, president and chief executive officer of Cooper Industries plc (“Cooper”), a publicly held electrical equipment and tool manufacturer, until Cooper’s acquisition by Eaton Corporation in November 2012. He was named chairman of Cooper in 2006, chief executive officer in 2005 and president in 2004. Mr. Hachigian was retired during the period between his departure from Cooper and when he joined JELD-WEN, inc. in April 2014. He is a director of PACCAR, Inc. (since 2008) and of Allegion plc (since November 2013).

Qualifications

Mr. Hachigian has beenextensive leadership, operations and strategic planning experience gained through his prior service as the chairman, chief executive officer and president of a directorglobal, publicly-held manufacturer of NextEra Energy since 2013.electrical equipment and tools. He also has international leadership and operations experience gained through his prior service as the president and chief executive officer of the Asia-Pacific operations of a lighting products manufacturer and in key management positions in Singapore and Mexico. In addition, Mr. Hachigian has financial and risk oversight experience developed through his prior service on the audit committee of another public company and as a prior member of the board of the Houston branch of the Federal Reserve Bank of Dallas. He has a MBA in finance from the Wharton School of Business and a bachelor’s degree in engineering from the University of California (Berkeley).

  

 

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Toni Jennings

 

Age:70

Director Since:2007

Public Company Boards:

  Brown & Brown, Inc. (since 2007)

  Mid-America Apartment Communities, Inc. (since 2016)

  Post Properties, Inc. (2013 – 2016)

  

Biography

Ms. Jennings 67, has served since 2007 as the chairman of the board of Jack Jennings & Sons, Inc., a family-owned construction business that provides general contractor, construction manager and design builder services. She served as the Lieutenant Governor of the State of Florida from March 2003 through December 2006. Prior to serving in that role, she was a member of the Florida Senate from 1980 until 2000, serving two consecutive terms as Senate President, and a member of the Florida House of Representatives from 1976 until 1980. Ms. Jennings served on the gubernatorial transition teams for Florida Governors Rick Scott and Ron DeSantis. From 1983 until she became Lieutenant Governor, she also served as president of Jack Jennings & Sons. Ms. Jennings is a director of Brown & Brown,Sons, Inc. (since 2007) and Mid-America Apartment Communities, Inc. (“Mid-America”) (since December 2016). Ms. Jennings was a director of Post Properties, Inc. from May 2013 until its merger with Mid-America in December 2016.

Qualifications

Ms. Jennings has beenextensive legislative and political experience, gained through service for four years as Lieutenant Governor of the State of Florida and 24 years in the Florida legislature. She also served as a directormember of NextEra Energy since 2007.the transition teams of Florida Governors Rick Scott and Ron DeSantis. In addition, through her 20 years as president and eleven years as chairman of Jack Jennings & Sons, Inc., she has extensive experience in operating a Florida-based business and familiarity with the Florida business environment.

 

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Amy B. Lane

 

Age:67

Director Since:2015

Public Company Boards:

  The TJX Companies, Inc. (since 2005)

  GNC Holdings, Inc. (since 2011)

  Trustee of Urban Edge Properties (since 2015)

  

Biography

Ms. Lane 64, retired in 2002 as managing director and group leader of the global Retailing Investment Banking Group of Merrill Lynch & Co., Inc. (“Merrill Lynch”), an investment banking firm. Prior to joining Merrill Lynch in 1997, she was a managing director at Salomon Brothers, Inc., an investment banking firm, where she founded and led the retail industry investment banking unit, having joined Salomon Brothers in 1989. Ms. Lane is a director of The TJX Companies, Inc. (since 2005) and GNC Holdings, Inc. (since 2011). She also is a trustee of Urban Edge Properties, an equity real estate investment trust (since January 2015).

Qualifications

Ms. Lane has been26 years of leadership experience with financial services, capital markets, finance and accounting, capital structure, and acquisitions and divestitures in the financial services industry, as well as extensive experience in management, leadership and strategy. Ms. Lane served as a managing director and group leader of NextEra Energy since February 2015.the global Retailing Investment Banking Group at Merrill Lynch from 1997 until her retirement in 2002. In that role, she led and worked on mergers and acquisitions and equity and debt transactions for a wide range of major retailers. Prior to joining Merrill Lynch, she was a managing director at Salomon Brothers, Inc., which she joined in 1989 and where she founded and led the retail industry investment banking unit. Ms. Lane has a MBA from the Wharton School of Business.

  

 

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David L. Porges

Age:62

Director Since:February 2020

Biography

Mr. Porges was anon-employee member of the board of directors of Equitrans Midstream Corporation (“Equitrans”) from November 2018 through December 2019 and was the chairman of the board of Equitrans from November 2018 to July 2019. He joined EQT Corporation (“EQT”) in 1998 as senior vice president and chief financial officer and served as EQT’s CEO from April 2010 to April 2011 and as CEO and chairman from April 2011 to February 2017. From February 2017 to March 2018, Mr. Porges served as EQT’s executive chairman and as chairman and interim CEO from March 2018 to November 2018.

Qualifications

Mr. Porges has more than 20 years of leadership, finance, operations and mergers and acquisitions experience gained through his prior service as CEO and chairman of a publicly held energy industry company, as well as his prior service as the chief financial officer of that energy company. Mr. Porges also has capital markets, finance and merger and acquisition experience gained through his prior service with an investment bank concentrating on the energy industry. Mr. Porges has a MBA from Stanford University.

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LOGO

 

James L. Robo

 

Age:57

Director Since:2012

Public Company Boards:

  NextEra Energy Partners, LP (since 2017)

  J.B. Hunt Transport Services, Inc. (since 2002, lead independent director since 2012)

  

Biography

Mr. Robo 54, has been chairman of the board since December 2013, and president and chief executive officer, and a director, of NextEra Energy since July 2012. He is also chairman of NextEra Energy’s subsidiary, FPL (which has no publicly-traded stock). Prior to his succession to the role of chief executive officer, he served as president and chief operating officer of NextEra Energy since 2006. Mr. Robo joined NextEra Energy as vice president of corporate development and strategy in March 2002 and became president of NextEra Energy Resources later in 2002. Mr. Robo is chairman of the board and chief executive officer of the general partner of NextEra Energy Partners, LP (“NEP”), a publicly-traded limited partnership formed and controlled by the Company (and in which the Company owns an underlying approximate 65.2%62% economic interest as of March 17, 2017)23, 2020). He is a director of J.B. Hunt Transport Services, Inc. (since 2002),

Qualifications

Mr. Robo, NextEra Energy’s chairman, president and haschief executive officer, previously served as J.B. Hunt’sthe Company’s vice president of corporate development and strategy, as president of NextEra Energy’s competitive energy subsidiary, NextEra Energy Resources, and as the Company’s chief operating officer. As a result of his service in his current and prior positions, Mr. Robo has extensive experience in operations, finance, strategic planning, risk management and mergers and acquisitions. He also has experience in financial and risk oversight, both through his position with the Company and his service as chairman of the audit committee of another public company, and in corporate governance, through his service as lead independent director since 2012.and a member of the nominating and corporate governance committee of the board of that public company. Prior to joining NextEra Energy, Mr. Robo was president and chief executive officer of a major division of General Electric Capital Corporation, a subsidiary of General Electric Company (“GE”). He also served as chairman and CEO of GE Mexico and was a member of the GE corporate development team. Prior to joining GE, he was vice president of Strategic Planning Associates, a management consulting firm. Mr. Robo has a Bachelor of Arts degree from Harvard College and a MBA from Harvard Business School.

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LOGO

 

Rudy E. Schupp

 

Age:69

Director Since: 2005

  

Biography

Mr. Schupp 66, is retired. He served as president of Valley National Bancorp and chief banking officer of Valley National Bank.Bank until his retirement in January 2018. He previously served as president—Florida Division of Valley National Bank from November 2014 until January 2017 and as president and chief executive officer, and a director, of 1st United Bank, a banking corporation headquartered in Boca Raton, Florida, and chief executive officer and a director of its publicly-held parent company, 1st United Bancorp, Inc., frommid-2003 until its sale to Valley National onin November 1, 2014. He was the chairman, president and chief executive officer of Republic Security Bank headquartered in West Palm Beach, Florida from 1984 until March 2001, and the chairman, president and chief executive officer of its parent company, Republic Security Financial Corporation (“RSFC”), from 1985 until March 2001, when RSFC was acquired by Wachovia Corporation. Following the acquisition, he served as Chairman of Florida Banking of Wachovia Bank, N.A. until December 2001. From March 2002 until March 2003, Mr. Schupp served as managing director of Ryan Beck & Co., an investment banking and brokerage company. He served as a director of the Federal Reserve Bank of Atlanta from January 2007 to December 2014.

Qualifications

Mr. Schupp has been34 years of leadership experience as a chief executive officer of both public and private banking organizations and has experience in reviewing the financial statements of complex businesses, mergers and acquisitions, developing and implementing capital raising strategies, strategic planning and expertise in Florida-based customers and business conditions. In addition, he has experience in such areas as macroeconomic policy, community and economic development and government regulation gained from his service as a director of NextEra Energy since 2005.the Federal Reserve Bank of Atlanta.

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LOGO

 

John L. Skolds

 

Age:69

Director Since: 2012

  

Biography

Mr. Skolds 66, is retired. He served as executive vice president of Exelon Corporation, an energy service provider (“Exelon”), and president of Exelon Energy Delivery from December 2003 until his retirement in September 2007. He also served as president of Exelon Generation from March 2005 to September 2007. From March 2002 to December 2003, Mr. Skolds served as senior vice president of Exelon and president and chief nuclear officer of Exelon Nuclear. Mr. Skolds was a director of Constellation Energy Group from 2007 until its merger with Exelon in March 2012.

Qualifications

Mr. Skolds has beenextensive leadership experience in the operation and management of nuclear power generation facilities and utilities and in financial and strategic planning. He retired as executive vice president of Exelon, a directorutility services holding company, and president of NextEraExelon Energy since 2012.Delivery and Exelon Generation. Earlier in his career, Mr. Skolds worked at SCANA Corporation, an energy-based holding company, in a number of capacities, including president and chief operating officer of South Carolina Electric and Gas. Mr. Skolds also served on the boards of the Institute for Nuclear Power Operations and the Nuclear Energy Institute. Mr. Skolds is a graduate of the United States Naval Academy and spent over five years in the Navy where, among other duties, he operated nuclear submarines. Mr. Skolds also holds a MBA from the University of South Carolina.

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LOGO

 

William H. Swanson

 

Age:71

Director Since: 2009

Public Company Boards:

  The TJX Companies, Inc. (2015 – 2016)

  

Biography

Mr. Swanson 68, is the retired chairman of the board and chief executive officer of Raytheon Company (“Raytheon”), a technology and innovation leader specializing in defense, security and civil markets throughout the world. He was Raytheon’s chief executive officer from July 2003 to March 2014 and served as chairman of the board from January 2004 until his retirement in September 2014. Before assuming those positions, he served as president of Raytheon from July 2002 to May 2004, as executive vice president of Raytheon and president of its Electronic Systems division from January 2000 to July 2002, and as executive vice president of Raytheon and chairman and chief executive officer of Raytheon Systems Company from January 1998 to January 2000. Mr. Swanson joined Raytheon in 1972 and held a wide range of leadership positions with the company. He served as a director of The TJX Companies, Inc. from January 2015 to June 2016.

Qualifications

Mr. Swanson has been42 years of leadership experience at Raytheon, a directorcomplex public company with international operations. Mr. Swanson served 10 years as Raytheon’s chairman of NextEra Energy since 2009.the board and 10 years as its chief executive officer. He has extensive experience in strategic planning, operations and management, global business operations and complex technologies. He holds a bachelor’s degree in industrial engineering from California Polytechnic State University.

  

 

LOGOLOGO

 

Hansel E. Tookes, IIDarryl L. Wilson

 

Age:56

Director Since:October 2018

  

Biography

Mr. Tookes, 69, is retired. Mr. Tookes servedWilson was vice president, commercial of GE Power, a business of GE, from June 2017 until his retirement in senior executive positions with Raytheon, a technology and innovation leader specializing in defense, security and civil markets throughout the world, from 1999 until December 2002. He joined Raytheon in 1999 as2017. From January 2016 to June 2017, he was vice president and& chief operatingcommercial officer of Raytheon Aircraft Company,GE Energy Connections and, from January 2013 to January 2016, he was appointed chairman andvice president & chief commercial officer of GE Distributed Power. From July 2008 to January 2013, he was president & chief executive officer of Raytheon Aircraft CompanyGE Aeroderivative Products. Other prior responsibilities include serving as the president & chief executive officer of GE Consumer & Industrial Asia & India based in 2000,Shanghai, China.

Qualifications

Mr. Wilson has extensive leadership experience in operations and became presidentcommercial management in global manufacturing and services businesses as a result of Raytheon International in 2001. From 1980 until joining Raytheon, Mr. Tookes heldhis senior leadership roles for a varietyglobal manufacturer and service provider of leadership positions with United Technologies Corporation, including service as president of Pratt & Whitney’s Large Military Engines Group.electrical power generation and distribution equipment. He isalso has extensive experience leading and managing commercial and manufacturing operations outside the U.S. for a director of Corning Incorporated (since 2001), Harris Corporation (since 2005)consumer and Ryder System, Inc. (since 2002). Mr. Tookes has been a director of NextEra Energy since 2005.industrial electrical equipment manufacturer.

 

Unless you specify otherwise in your proxy/confidential voting instruction card or in the instructions, you give on the Internet or by telephone, your proxy will be votedFORelection of each of the nominees.

 

THE BOARD UNANIMOUSLY RECOMMENDS A VOTEThe Board unanimously recommends a voteFOR THE ELECTION OF ALL NOMINEESthe election of all nominees

 

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Proposal 2: Ratification of appointment of Deloitte & Touche LLP as NextEra Energy’s independent registered public accounting firm for 20172020

In accordance with the provisions of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”), theThe Audit Committee of the Board appoints the Company’s independent registered public accounting firm. It has appointed Deloitte & Touche LLP (“Deloitte & Touche”) as the independent registered public accounting firm for the fiscal year ending December 31, 2020 to audit the accounts of NextEra Energythe Company and its subsidiaries, as well as to provide its opinion on the effectiveness of the Company’s internal control over financial reporting, forreporting. The members of the fiscal year ending December 31, 2017. Audit Committee and the Board believe that the continued retention of Deloitte & Touche as the Company’s independent registered public accounting firm is in the best interests of the Company and its shareholders.

Although ratification is not required, the Board is submitting the selection of Deloitte & Touche to shareholders as a matter of good corporate practice. If the shareholders do not ratify the appointment, the appointment will be reconsidered by the Audit Committee, although the Audit Committee may nonetheless decide to retaincontinue the retention of Deloitte & Touche as NextEra Energy’s independent registered public accounting firm.firm for 2020. Even if the appointment is ratified, the Audit Committee in its discretion may terminate the service of Deloitte & Touche at any time during the year if it determines that the appointment of a different independent registered public accounting firm would be in the best interests of NextEra Energy and its shareholders. Additional information on audit-related matters may be found beginning on page 4134 of this proxy statement.

Representatives of Deloitte & Touche are expected to be present at the annual meeting and will have an opportunity to make a statement and respond to appropriate questions from shareholders at the meeting.

Unless you specify otherwise in your proxy/confidential voting instruction card or in the instructions, you give on the Internet or by telephone, your proxy will be votedFORratification of appointment of Deloitte & Touche as NextEra Energy’s independent registered public accounting firm for 2017.2020.

 

THE BOARD UNANIMOUSLY RECOMMENDS A VOTEThe Board unanimously recommends a voteFOR RATIFICATION OF APPOINTMENT OF DELOITTEratification of appointment of Deloitte & TOUCHETouche LLP AS NEXTERA ENERGY’S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR 2017as NextEra Energy’s independent registered public accounting firm for 2020

 

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Proposal 3: Approval, bynon-binding advisory vote, of NextEra Energy’s compensation of its named executive officers as disclosed in this proxy statement

The Company is asking shareholders to cast an advisory vote on the compensation of the Company’s named executive officers (“NEOs”), which is commonly called a “say-on-pay” vote. The advisory“say-on-pay” vote, which is required pursuant to section 14A of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is to approve the compensation of the Company’s named executive officers as described below (beginning on page 44) in theCompensation Discussion& Analysis section of this proxy statement and in the tabular and narrative disclosure following that section. While. Although this vote is not binding, it will provide information to the Compensation Committee regarding investor sentiment about the Company’s executive compensation philosophy, policies and practices, which the Compensation Committee will be able to consider when making future determinations regarding named executive officerNEO compensation. The Company currently plans to give shareholders the opportunity to cast an advisory vote on this matter annually, so that, followingannually. Following the vote on this proposal, the next opportunity will occur in connection with the Company’s 20182021 annual meeting.

The Company asks shareholders to approve this proposal by approving the followingnon-binding resolution: “RESOLVED, that the shareholders of NextEra Energy, Inc. approve, on an advisory basis, the compensation paid to the Company’s NEOs, as disclosed in this proxy statement for the 2020 annual meeting of shareholders.shareholders, including theCompensation Discussion & Analysis section, the compensation tables and the accompanying narrative discussion, pursuant to the compensation disclosure rules of the Securities and Exchange Commission (Item 402 of Regulation S-K).”

The fundamental objective of NextEra Energy’s executive compensation program is to motivate and reward actions that the Compensation Committee believes will increase shareholder value, particularly over the longer term. The program is designed to attract, retain, motivate, reward and develop high-quality, high-performing executive leadership whose talent and expertise should enable the Company to create long-term shareholder value. The Compensation Committee believes the Company’s executive compensation program reflects a strongpay-for-performance philosophy and is well-aligned with the short-term and long-term interests of shareholders and other important Company stakeholders, including customers and employees. A significant portion of each named executive officer’sNEO’s total compensation opportunity is performance-based and carries both upside and downside potential. Named executive officers (and all of NextEra Energy’s other officers) must build and maintain a significant and continuing equity interest in NextEra Energy. This helps to ensure that their interests are aligned with those of shareholders and that changes in the price of NextEra Energy common stock have a meaningful economic effect on the officers.

TheExecutive Compensation section of this proxy statement, including theCompensation Discussion& Analysis,beginning on page 37, provides a more detailed discussion of the Company’s compensation program for its named executive officers.NEOs. The discussion reflects that NextEra Energy’s compensation program has been achievingachieves its objective.objectives. For example, the chart below compares the Company’s TSR for the1-, 3-, 5-,3-,5- and10-year periods ended December 31, 20162019 to the TSRs of the S&P 500 Electric Utilities Index, the S&P 500 Utilities Index, the Philadelphia Exchange Utility Sector Index (“UTY”),UTY and the S&P 500. NextEra Energy outperformedall of these indices over all of the periods shown. NextEra Energy’s outperformance over all of these periods in comparison to others in its industry, and over the 3-year, 5-year1-,3-,5- and10-year periods in comparison to the S&P 500, was substantial.

NextEra Energy Total Shareholder Return Through 12-31-1612-31-19 vs. Various Indices(1)

 

  

1-year TSR

 

3-year TSR

 

5-year TSR

 

10-year TSR

 

 1-year TSR  3-year TSR  5-year TSR  10-year TSR   

NextEra Energy

  18.4  53  130  206 43% 119% 161% 530%
  

S&P 500 Electric Utilities Index, total return

  15  43  54  82 27% 47% 60% 182%
  

S&P 500 Utilities Index, total return

  16.3  43  64  97 26% 48% 63% 205%
  

UTY, total return

  17  42  57  88 27% 48% 63% 192%
  

S&P 500, total return

  12  29  98  96 32% 53% 74% 257%

 

(1)

Source: FactSet Research Systems Inc.; except UTY, source: Bloomberg

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The Company asks shareholders to approve this proposal by approving the following non-binding resolution:

RESOLVED, that the shareholders of NextEra Energy, Inc. approve, on an advisory basis, the compensation paid to the Company’s named executive officers, as disclosed pursuant to Item 402 of Regulation S-K as promulgated by the Securities and Exchange Commission in the NextEra Energy, Inc. proxy statement for the 2017 annual meeting of shareholders, including theCompensation Discussion & Analysis section, the compensation tables and the accompanying narrative discussion.

Unless you specify otherwise in your proxy/confidential voting instruction card or in the instructions, you give on the Internet or by telephone, your proxy will be votedFORapproval, bynon-binding advisory vote, of NextEra Energy’s compensation of its NEOs as disclosed in this proxy statement.

The Board unanimously recommends a voteFOR approval, bynon-binding advisory vote, of NextEra Energy’s compensation of its named executive officers as disclosed in this proxy statement.

THE BOARD UNANIMOUSLY RECOMMENDS A VOTEFOR APPROVAL, BY NON-BINDING ADVISORY VOTE, OF NEXTERA ENERGY’S COMPENSATION OF ITS NAMED EXECUTIVE OFFICERS AS DISCLOSED IN THIS PROXY STATEMENTstatement

 

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Proposal 4: Non-binding advisory vote on whether NextEra Energy should hold a non-binding shareholder advisory vote to approve NextEra Energy’s compensation of its named executive officers every 1, 2 or 3 yearsShareholder proposal

In accordance with the requirements of Section 14A of theSecurities and Exchange Act and related SEC rules, the Company is asking shareholders to cast an advisory vote on the frequency with which shareholders would have an opportunity to provide an advisory “say-on-pay” vote on named executive officer compensation. Shareholders have the option of selecting a frequency of 1, 2 or 3 years, or abstaining from a vote on this proposal.

Consistent with the shareholder vote in 2011, the Company has held a “say-on-pay” vote annually. To allow the Company’s shareholders to provide input on NextEra Energy’s compensation philosophy, policies and practices as disclosed in the proxy statement every year, the Board recommends that the annual say-on-pay vote be continued.

Shareholders are not voting to approve or disapprove the Board’s recommendation of annual “say-on-pay” votes. Rather, shareholders are being given an opportunity to express their preference for the frequency of “say-on-pay” votes. Shareholders may choose among the following four options when voting on this proposal:

(1)

a “say-on-pay” vote every 1 year;

(2)

a “say-on-pay” vote every 2 years;

(3)

a “say-on-pay” vote every 3 years; or

(4)

abstain from voting.

The frequency option—1, 2 or 3 years—receiving the greatest number of votes will be considered the frequency preferred by the Company’s shareholders. Although this vote is not binding on the Company or the Board, the Board will take into consideration the outcome of the vote in making a determination on the frequency with which proposals for non-binding advisory votes to approve named executive officer compensation will be included in the Company’s proxy statement. The Board may decide that it is in the best interests of shareholders and the Company to hold an advisory vote on named executive officer compensation more or less frequently than the option preferred by shareholders.

Unless you specify otherwise in your proxy/voting instruction card or in the instructions you give by telephone or Internet, your proxy will be voted for a frequency of every1 YEAR as the frequency with which NextEra Energy will hold non-binding advisory votes to approve NextEra Energy’s compensation of its named executive officers.

THE BOARD UNANIMOUSLY RECOMMENDS A VOTE FOR1 YEAR AS THE FREQUENCY WITH WHICH NEXTERA ENERGY WILL HOLD A NON-BINDING SHAREHOLDER ADVISORY VOTE TO APPROVE NEXTERA ENERGY’S COMPENSATION OF ITS NAMED EXECUTIVE OFFICERS

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Proposal 5: Approval of the NextEra Energy, Inc. 2017 Non-Employee Directors Stock Plan

The Company is asking shareholders to consider and vote upon a proposal to approve the NextEra Energy, Inc. 2017 Non-Employee Directors Stock Plan (the “2017 Non-Employee Directors Plan”Commission (“SEC”). Upon the recommendation of the Compensation Committee, the Board on February 17, 2017 unanimously approved the 2017 Non-Employee Directors Plan, which will become effective upon receipt of shareholder approval of the plan at the 2017 annual meeting. The Board believes that approval of the 2017 Non-Employee Directors Plan is in the best interests of the Company and its shareholders.

The Board has proposed approval of the 2017 Non-Employee Directors Plan to amend and restate the Company’s current FPL Group, Inc. 2007 Non-Employee Directors Stock Plan (the “Current Directors Plan”). Although shares of the Company’s common stock remain available for grant under the Current Directors Plan, the Company’s authority to pay additional compensation under the Current Directors Plan expires on May 24, 2017. The Company is asking its shareholders to approve the amended and restated plan so that it will be able to continue to pay stock-based compensation to non-employee directors. When the 2017 Non-Employee Directors Plan becomes effective, no additional awards will be made under the Current Directors Plan.

No awards under the 2017 Non-Employee Directors Plan have been granted or will be granted unless and until the plan is approved by the Company’s shareholders at the 2017 annual meeting. If shareholders do not approve the 2017 Non-Employee Directors Plan, compensatory equity-based grants to directors will continue to be made under the Current Directors Plan until the plan expires and to the extent of the shares of the Company’s common stock available for issuance under that plan, which for future grants totaled approximately 250,360 shares as of March 1, 2017 (without giving effect to additional shares that may become available upon the future forfeiture or cancellation of outstanding awards).

Description of the 2017 Non-Employee Directors Plan

The following description of the 2017 Non-Employee Directors Plan is qualified in its entirety by reference to the complete text of the 2017 Non-Employee Directors Plan, which is attached as Appendix A to this proxy statement and incorporated by reference into this proposal. You are urged to read this proposal and the text of the 2017 Non-Employee Directors Plan in their entirety.

Summary of Material Provisions of the 2017 Non-Employee Directors Plan

Purpose and Eligibility.The purpose of the 2017 Non-Employee Directors Plan is to further strengthen the alignment of interests between members of the Board of Directors of NextEra Energy who are not employees of the Company and the Company’s shareholders through the ownership by non-employee directors of shares of the Company’s common stock. Awards may be granted under the 2017 Non-Employee Directors Plan only to individuals who are members of the Board and are not employees of the Company. As of March 1, 2017, all 11 non-employee directors would be eligible to participate in the 2017 Non-Employee Directors Plan.

Effective Date. The 2017 Non-Employee Directors Plan will be effective on the date on which it is approved by the Company’s shareholders.

Term.The 2017 Non-Employee Directors Plan will terminate automatically ten years after its effective date, unless it is earlier terminated by the Board.

Administration.The 2017 Non-Employee Directors Plan generally will be administered by a committee (the “Committee”) consisting of two or more directors of the Company each of whom qualifies as a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act. Unless otherwise determined by the Board, the Committee will be the Compensation Committee. The Committee has plenary discretion and authority over the operation of the 2017 Non-Employee Directors Plan.

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Shares Available under the Plan.Assuming the 2017 Non-Employee Directors Plan is approved by shareholders, the maximum aggregate number of shares which may be issued under the 2017 Non-Employee Directors Plan will be 500,000 shares, including shares previously granted under the Current Directors Plan that remain subject to a forfeiture condition on the date of the 2017 annual meeting. The Current Directors Plan has approximately 250,360 shares available for grant as of March 1, 2017, none of which will be available for grant upon approval of the 2017Non-Employee Directors Plan. As of March 1, 2017, the closing price of the Company’s common stock as reported in the consolidated transaction reporting system of the NYSE was $129.41.

Termination, Amendment and Adjustments in the Event of Business Reorganization.The Board will be authorized to amend, alter, suspend or terminate the 2017 Non-Employee Directors Plan as to any shares of the Company’s common stock as to which awards have not been made. Any amendment to the 2017 Non-Employee Directors Plan, however, will be subject to receipt of the approval of the Company’s shareholders if shareholder approval of the amendment is required by any law or regulation or NYSE rule or to the extent determined by the Board. In the event any recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, exchange of shares for other securities, stock dividend or other special and nonrecurring dividend or distribution (whether in the form of cash, securities or other property), liquidation, dissolution or other similar corporate transaction or event affects the shares such that an adjustment is appropriate in order to prevent dilution or enlargement of the rights under the 2017 Non-Employee Directors Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and kind of securities deemed to be available thereafter for issuances of shares in the aggregate to all non-employee directors and individually to any one non-employee director and (ii) the number and kind of securities that may be delivered or deliverable in respect of undistributed shares.

Awards.The following types of awards may be made under the 2017 Non-Employee Directors Plan, subject to limitations set forth in the plan.

Discretionary Grants.The Committee, in its discretion, may make a grant of shares (or an interest in shares, however denominated, to be settled in the future by delivery of shares) to any one or more non-employee directors as consideration for services rendered or promised to be rendered as a member of the Board or its committees at such times, for such number of shares and on such other terms and conditions (including but not limited to restrictions on the voting and dividend rights associated with such shares, service-related vesting, forfeiture provisions, holding period, and transfer restrictions) as the Committee may determine. Unless the Committee determines otherwise, discretionary grants: (a) shall be in the form of issued and outstanding shares registered in the name of the non-employee director; (b) shall be fully vested and nonforfeitable when awarded; and (c) shall carry full voting and dividend rights in favor of the holder of record from the date of grant.

Voluntary Conversion of Cash Compensation.A non-employee director may elect, at such time and in such manner as the Committee may prescribe, that all or any portion of his or her compensation for service on the Board and its committees that is payable in cash be converted into and distributed to the non-employee director in shares of equivalent fair market value. Shares distributed in this way shall be fully vested and nonforfeitable.

Awards to New Directors.The Committee, in its discretion, may make a one-time grant of shares to a non-employee director after his or her initial election or appointment to the Board. Any such award shall be made within six (6) months after such non-employee director becomes a member of the Board. The Committee shall determine the number of shares included in such award. Shares distributed in this way shall be fully vested and nonforfeitable.

Dividend Equivalents.The Committee is authorized to grant dividend equivalents. The Committee may provide that dividend equivalents shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional shares or other property, or otherwise reinvested.

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Deferral.Compensation payable under the 2017 Non-Employee Directors Plan shall be eligible for deferral for federal (and, to the extent applicable, state and local) income tax purposes if and to the extent provided under a separate written deferred compensation plan of the Company that complies with the requirements of section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations promulgated thereunder.

Holding Period for Shares.Shares acquired by a non-employee director under the 2017 Non-Employee Directors Plan may not be sold or transferred so long as he or she remains a member of the Board except that a non-employee director may sell or transfer shares in excess of the shares required to be held according to the Company’s written stock ownership guidelines for non-employee directors as specified in the Corporate Governance Principles and Guidelines.

New Plan Benefits. The number of shares that will be awarded to the directors under the 2017 Non-Employee directors Plan is not determinable at this time as the Committee will make the awards in its sole discretion. The number of awards made under the Current Directors Plan in 2016 is described under “Director Compensation” beginning on page 90.

Summary of U.S. Federal Tax Consequences.A non-employee director who is awarded fully vested shares under the 2017 Non-Employee Directors Plan will be required to recognize ordinary income for U.S. federal income tax purposes in an amount equal to the fair market value of the shares on the date of the award. The Company will be entitled to deduct the amount of the ordinary income recognized by the non-employee director for the same year in which the non-employee director recognizes ordinary income.

A non-employee director who is awarded shares subject to a vesting schedule under the 2017 Non-Employee Directors Plan generally will not recognize any taxable income for federal income tax purposes at the time the award is made. However, the non-employee director may elect under Section 83(b) of the Internal Revenue Code to recognize ordinary income in the year of the award in an amount equal to the fair market value of the shares on the date of the award, determined without regard to the vesting schedule. If a non-employee director does not make such a Section 83(b) election, the fair market value of the shares on the date such shares vest will be treated as ordinary income to the non-employee director and will be taxable in the year vesting occurs. Dividends paid while the shares are subject to vesting, once themselves vested, will be taxable as ordinary income. The Company will be entitled to a business expense deduction in the same amount and at the same time as the non-employee director recognizes ordinary income.

If a non-employee director elects to defer shares received under the 2017 Non-Employee Directors Plan, U.S. federal income taxation will be deferred to the date of delivery of the shares in accordance with the deferral election. In addition, the Company’s business expense deduction will be in the same amount and at the same time as the non-employee director recognizes ordinary income.

Unless you specify otherwise in your proxy/voting instruction card or in the instructions you give on the Internet or by telephone, your proxy will be votedFOR approval of the NextEra Energy, Inc. 2017 Non-Employee Directors Stock Plan.

THE BOARD UNANIMOUSLY RECOMMENDS A VOTEFOR APPROVAL OF THE NEXTERA ENERGY, INC. 2017 NON-EMPLOYEE DIRECTORS STOCK PLAN

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Securities Authorized For Issuance Under Equity Compensation Plans

NextEra Energy’s equity compensation plan information as of December 31, 2016 is as follows:

Plan Category Number of securities
to be issued upon
exercise of
outstanding options,
warrants and
rights(a)
  Weighted-average
exercise price of
outstanding
options, warrants
and rights ($)(b)
  Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
reflected in
column (a))(c)
 

Equity compensation plans approved by security holders

  4,479,039(1)  $71.08(2)   9,383,195 

Equity compensation plans not approved by security holders

         

Total

  4,479,039  $71.08   9,383,195 

(1)

Includes an aggregate of 2,505,208 outstanding options, 1,747,538 unvested performance share awards (at maximum payout), 16,564 deferred fully vested performance shares and 183,989 deferred stock awards (including future reinvested dividends) under the NextEra Energy, Inc. Amended and Restated 2011 Long Term Incentive Plan (“2011 LTIP”) and the former long term incentive plan, the FPL Group, Inc. Amended and Restated Long Term Incentive Plan, and 25,740 fully vested shares deferred by directors under the NextEra Energy, Inc. 2007 Non-Employee Directors Stock Plan and its predecessor, the FPL Group, Inc. Amended and Restated Non-Employee Directors Stock Plan.

(2)

Relates to outstanding options only.

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Proposal 6: Shareholder proposal

The Comptroller of the State of New York, Thomas P. DiNapoli, 59 Maiden Lane, 30th Floor, New York, NY 10038, is the trustee of the New York State Common Retirement Fund (the “Fund”) and has given the Company notice that he intends to present this proposal at the annual meeting on behalf of the Fund. The Fund represented that it held a total of 1,410,600 shares of common stock as of the date the proposal was submitted. In accordance with SEC regulations, the text of thethis shareholder proposal and supporting statement appear exactly as received by the Company (including the use of boldface and italics).Company. The shareholder proposal may contain assertions about the Company or other matters that the Company believes are incorrect, but the Company has not attempted to refute allany of those assertions. All statements contained in the shareholder proposal and supporting statement are the sole responsibility of the proponent. The Company disclaims responsibility for the content of the proposal and the supporting statement, including sources referenced instatement.

The Company will provide the supporting statement.name, address and share ownership information of the proponent of Proposal 4 promptly upon receipt by the Corporate Secretary of an oral or written request for that information.

Proposal 6—4—Political Contributions Disclosure

Resolved, that the shareholders ofNextEra Energy, Inc. (“NextEra” or “Company”) hereby request that the Company provide a report, updated semiannually, disclosingto disclose the Company’s:

 

1.

Policies and procedures for making, with corporate funds or assets, contributions and expenditures (direct or indirect) toto: (a) participate or intervene in any political campaign on behalf of (or in opposition to) any candidate for public office, oror: (b) influence the general public, or any segment thereof, with respect to an election or referendum.

 

2.

Monetary andnon-monetary contributions and expenditures (direct and indirect) used in the manner described in section 1 above, including:

 

 a.

The identity of the recipient as well as the amount paid to each; and

 

 b.

The title(s) of the person(s) in the Company responsible for decision-making.

The report shall be presented to the board of directors or relevant board committee and posted on the Company’s website within 12 months from the date of the annual meeting. This proposal does not encompass lobbying spending.

Supporting Statement

As long-termLong-term shareholders of NextEra we support transparency and accountability in corporate spending on political activities. These includeelectoral spending. This includes any activities considered intervention in any political campaignactivity under the Internal Revenue Code considered intervention in a political campaign, such as direct and indirect contributions to political candidates, parties, or organizations, or ballot measures; directand independent expenditures;expenditures or electioneering communications on behalf of federal, state, or local candidates.

Disclosure is in the best interest of the company and its shareholders. The Supreme Court affirmedrecognized this in its 2010 Citizens United decision: decision, which declared: “[D]isclosure permits citizens and shareholders to react to the speech of corporate entities in a proper way. This transparency enables the electorate to make informed decisions and give proper weight to different speakers and messages.” Gaps in transparency and accountability may expose the company to reputational and business risks that could threaten long-term shareholder value.

Publicly available records show that NextEra has contributed over $11.6 millionat least $11,870,000 in corporate funds since the 20042010 election cycle. (CQ:cycle (CQMoneyLine: http://moneyline.cq.com andmoneyline.cq.com; National instituteInstitute on Money in State Politics:http://www.followthemoney.org)www.followthemoney.org).

However, relying on publicly available data does notcannot provide a complete picture of the Company’s politicalelectoral spending. For example, the Company’s payments to trade associations and “social welfare organizations”—organized under section 501(c)(4) of the IRS Code—– payments that may be used for politicalelection-related activities are undisclosed and unknown. This proposal asks the Company to disclose all of its political expenditures,electoral spending, including payments to trade associations and othertax-exempt organizations.

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organizations, which may be used for electoral purposes. This would bring our Company in line with a growing number of leading companies, includingPG&E Edison International, Dominion Resources Inc., and Sempra Energy, andEdison International, that support political disclosure and accountability and which present this information on their public websites.

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The Company’s Board and its shareholders need comprehensive disclosure to be able to fully evaluate the political use and potential risk of corporate assets. Weassets in elections.

THEREFORE, we urge your support for this critical governance reform.

Political Contributions Disclosure—Proposal 64

The Board Unanimously Recommendsunanimously recommends a Vote voteAGAINST the Foregoing Proposalforegoing proposal for the Following Reasons:following reasons:

The Board believes that adopting the shareholder proposal (the “Proposal”) would not be in the best interests of the Company or its shareholders.

The very same proposalCompany’s political engagement significantly benefits its shareholders and customers.

The Company’s active political engagement strategy helps support constructive political and regulatory environments throughout the U.S. and creates long-term shareholder value. In Florida, a constructive regulatory environment is a key foundation to the Company’s regulated utility strategy of further improving itsbest-in-class customer value proposition through smart capital investments that also benefit shareholders. This strategy has resulted in Florida Power & Light Company (“FPL”) delivering a customer bill that is approximately 30% below the national average and among the lowest in the nation, while providing industry leading reliability. In addition to saving customers more than $10 billion in fuel costs since 2001, FPL’s investments into highly efficient generation have reduced FPL’s CO2 emissions rate by more than 35% since 2001, resulting in an emissions profile that is more than 30% below the national average. At NextEra Energy Resources, local, state and federal regulations govern every aspect of the Company’s renewable energy development business. Successful political engagement has supported the Company in becoming the world’s leading generator of energy from the same proponent was defeated bywind and the sun. Without the Company’s active political engagement, it is likely that overall renewable development within the U.S. would have been significantly lower than current levels. The Company believes that without active political engagement it would be less successful in advancing these corporate strategies and, as a result, reduce long-term shareholder value creation.

In response to shareholder feedback, in October 2019, the Company implemented the Proposal’s key objectives.

The Company received a substantially identical shareholder proposal at its 2019 annual meeting of shareholders at(“2019 annual meeting”). That proposal received the 2015 and 2016 annual meetingssupport of shareholders. The same proposal was presented on behalfapproximately 48.7% of the Fundvotes cast. As discussed above in theGovernance Highlights section at page 4, following the Company’s 20152019 annual meeting, the Company engaged in an extensive shareholder outreach program to better understand shareholder views on political expenditures and 2016 annual meetings of shareholders andassociated disclosures. During its outreach program, the Company sought to engage with the Company’s top 50 shareholders, rejected this proposal with 60.4% and 57.3%, respectively,representing more than 52% of votes cast voting against the proposal.

NextEra Energy recently updated its website to provide additional information related to political contributions.Company’s outstanding shares. The Company updated its website this year to place filed lobbying reports directly onultimately engaged with 25 of these shareholders, representing more than 40% of the Company’s website.outstanding shares. In response to feedback gathered from its outreach efforts, as described in more detail below, the Company enhanced its Political Engagement Policy (the “Policy”), which governs the Company’s political contributions and expenditures. The Company also increased its disclosure of its political contributions and expenditures. As a result muchof these enhancements, the Company has implemented the key objectives of the information requestedProposal. As stated in the shareholder proposal is now available directly onProponent’s supporting statement, the Proposal seeks greater transparency and accountability with respect to the Company’s website.political expenditures. The enhancements described below deliver greater transparency and accountability with respect to the Company’s political expenditures and, on several topics, provide disclosure above that requested by the Proposal. The Company also added additional navigation links to provide easier access to the political contributions policy and information.

NextEra Energy needs to be an effective participant in the legislative and regulatory process.The Company is closely regulated and subject to legislation that can impact the Company’s operations and profitability. The Board believes that it is inany additional disclosure or processes would not add significant value, would not be a prudent use of Company resources and would also be detrimental to the best interests of the Company and its shareholders.

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The Company’s Political Engagement Policy has been enhanced to provide formal oversight of political expenditures by the Governance & Nominating Committee of the Board.

During the outreach process, shareholders for NextEra Energy to be an effective participantexpressed a primary concern of ensuring that there was formalized Board oversight of the Company’s engagement in the political process. LawsIn response, the Company formalized board-level oversight of the Company’s political expenditures and policies enacteddisclosures. The Company enhanced its Policy (available on its website3), giving specific responsibility to the Board’s Governance and adoptedNominating Committee, composed entirely of independent directors, to review at least annually the following political activities: contributions by federal, stateThe NextEra Energy, Inc. Political Action Committee (“Company PAC”); contributions by the Company to candidates and local authorities can have acommittees; the Company’s contributions to all U.S.tax-exempt organizations that are primarily engaged in political activities; and the Company’s significant impacttrade association memberships and dues.

Trade Association membership information is now provided on the Company’s website and the Company conducts an annual review of trade association memberships to ensure overall alignment with Company strategy.

The Company now discloses on its website trade association dues in excess of $25,000 and its customers, employees and shareholders. NextEra Energy actively encouragesthe portion allocable to federal lobbying activities. Certain shareholders also indicated that oversight should include a review of the Company’s memberships in trade associations to ensure that the trade associations’ public policy that furthers its ability to provide the cleanest, most reliable electricity to its customers and to operate efficiently, safely and profitably. NextEra Energy’s activepositions or participation in political processes and public policy discussions is appropriateare appropriately aligned with the Company’s corporate strategy. The enhanced Policy requires an annual review of significant trade association memberships by the Company’s Vice President, Government Affairs-Federal to ensure that public officials are informed about key issues that affecttrade association participation aligns with the Company’s interestsstrategy. Any policy positions that may be in conflict with the Company’s strategy and those of its customers, employeesobjectives will be reviewed with the Chairman and shareholders andChief Executive Officer of the communitiesCompany to ensure that participation in these organizations continues to provide an overall benefit to the Company.

Extensive disclosure of political engagement activities has been added to the Company’s website.

Also in response to shareholder feedback, the Policy was amended to require the Company serves.“to publicly disclose on its website, within 180 days after the end of each calendar year, its annual Significant Trade Association Dues, its expenditures for federal and state lobbying and contributions from the Company PAC, among other pertinent information.” As a result, the Company now discloses on its website4 specific contributions by the Company PAC to federal candidates, federal committees, state candidates and state committees; Company lobbying reports submitted for state lobbying activities; federal lobbying disclosures; links to Federal Election Commission and Lobbying Disclosure Act reports; and links to over 30 state lobbying registration commissions. Although publication of much of this information was previously publicly available, the Company website now aggregates this wide-ranging information, making it more easily accessible and viewable by shareholders. The additional disclosure goes above and beyond that requested by the Proposal.

NextEra Energy already has a Political Contributions Policy and itsThe Company’s political contributionsexpenditures are regulated by the governmentstate and U.S. federal laws..NextEra Energy

The Company maintains a rigorous compliance process to ensure that the Company’sits political activities are lawful, properly disclosed and aligned with its Code of Business Conduct & Ethics. Political contributionsexpenditures also are also subject to comprehensive regulation by federal, state and local governments with detailed disclosure requirements, including requirements to file reports with appropriate state and federal agencies on lobbying-related activities and expenditures. NextEra EnergyThe Company is committed to compliance with all such applicable laws.

The proposal is unnecessary and duplicative because NextEra Energy’s political contributions are already subject to extensive disclosure requirements.The Board believes that adoption of this resolution is unnecessary and duplicative. NextEra Energy already discloses its Political Contributions Policy and the process for and the titles of the individuals responsible for authorizing contributions pursuant to this policy. NextEra Energy already reports corporate lobbying-related activities and expenditures as required to appropriate federal, state and local agencies. Information about the Political Contributions Policy and NextEra Energy’s political action committee (“PAC”) contributions and current lobbying activities can be found on the Company’s website athttp://www.investor.nexteraenergy.com and in reports filed with various state and federal agencies, which are also available through links on the Company’s website.

these requirements.

 

3

http://www.investor.nexteraenergy.com/~/media/Files/N/NEE-IR/corporate-governance/political-engagement-policy/2019/NextEra%20Energy%20Political%20Engagement%20Policy%2010-2019.pdf

4

http://www.investor.nexteraenergy.com/corporate-governance/corporate-political-engagement

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Adopting the proposal would not be the best use of NextEra Energy’s resources because adequate disclosure already exists.Since disclosure of the Company’s policies and procedures regarding lobbying activities, business associations and PAC contributions are already readily available to the public and Company shareholders, the Board believes that the additional reports requested in the proposal would result in an unnecessary and unproductive use of the Company’s resources.

Additional detailed disclosure requirementsof political expenditures or too frequent disclosure could hinder the Company’s ability to pursue its business and strategic objectivesobjectives.. It is the Board’s view that subjecting

Subjecting the Company to additional disclosure requirements could hinder the Company’sits ability to pursue its business and strategic objectives. SuchThe development cycle for clean and renewable energy projects takes many years. Additional or more frequent disclosure would make it easier forclearly indicate to competitors and othersopponents of energy projects where and what kind of projects the Company intends to discerndevelop and operate. This could prevent or greatly hinder the Company’s public policydevelopment and operating goals and objectives and, consequently, be detrimental to shareholders.

In considering and approving the enhanced Policy, the Governance & Nominating Committee balanced shareholder feedback on political strategies and implement strategies opposed toexpenditure disclosure with the Company’s public policy goals, which would preventneed to effectively pursue its strategic objectives. The Company believes that the achievement of such goalsenhanced Policy approved by the Governance & Nominating Committee in October 2019 strikes an appropriate balance between the shareholder feedback discussed above and could negatively affect the Company’s ability to maintain its effectiveness as a participant in political processes at the local, state and federal levels.

The Company believes that its operations and results. NextEra Energy’s responsible participation in the political process and its associated prudent expenditures in connection with such participation are in the best interests of the Company, its shareholders and its customers.

Unless you specify otherwise in your proxy/confidential voting instruction card or in the instructions, you give on the Internet or by telephone, your proxy will be votedAGAINST proposal 6.4.

 

FOR THE ABOVE REASONS, THE BOARD UNANIMOUSLY RECOMMENDS A VOTEFor the above reasons, the Board unanimously recommends a voteAGAINST THIS PROPOSALthis proposal

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Proposal 5: Shareholder proposal

In accordance with Securities and Exchange Commission (“SEC”) regulations, the text of this shareholder proposal and supporting statement appear exactly as received by the Company. The shareholder proposal may contain assertions about the Company or other matters that the Company believes are incorrect, but the Company has not attempted to refute all of those assertions. All statements contained in the shareholder proposal and supporting statement are the sole responsibility of the proponent. The Company disclaims responsibility for the content of the proposal and the supporting statement.

The Company will provide the name, address and share ownership information of the proponent of Proposal 5 promptly upon receipt by the Corporate Secretary of an oral or written request for that information.

Proposal 5—Right to Act by Written Consent

Resolved, NextEra Energy (“NEE” or “Company”) shareholders request our board of directors undertake steps as necessary to permit written consent by shareholders entitled to cast the minimum number of votes necessary to authorize action at a meeting at which all shareholders entitled to vote were present and voting. This written consent is to be consistent with giving shareholders the fullest power to act by written consent consistent with applicable law, including the ability to initiate any topic for written consent consistent with applicable law.

Supporting Statement

Shareholder rights to act by written consent and special meetings are often complimentary ways to bring urgent matters to the attention of management and shareholders outside the annual meeting cycle.

Many boards and investors assume a false equivalency between rights of written consent and special meetings. However, any shareholder, regardless how many (or few) shares she owns, can seek to solicit written consents on a proposal.

By contrast, calling a special meeting may require atwo-step process. A shareholder who does not own the minimum shares required must first obtain the support of other shareholders. Once that meeting is called, the shareholder must distribute proxies asking shareholders to vote on the proposal to be presented at the special meeting. Thistwo-step process can take more time and expense than theone-step process of soliciting written consents, especially at our Company, which allows only investors with 20% of outstanding shares to call a special meeting, instead of 10%, as allowed by many companies.

Blackrock’s proxy voting guidelines for 2019 include the following:

In exceptional circumstances and with sufficiently broad support, shareholders should have the opportunity to raise issues of substantial importance without having to wait for management to schedule a meeting. We therefore believe that shareholders should have the right to solicit votes by written consent provided that: 1) there are reasonable requirements to initiate the consent solicitation process (in order to avoid the waste of corporate resources in addressing narrowly supported interests); and 2) shareholders receive a minimum of 50% of outstanding shares to effectuate the action by written consent.

The topic won majority votes recently at Kansas City Southern, Flowserve, JetBlue, United Rentals, Capital One Financial, Cigna, Applied Materials, Nuance Communications, Netflix, Newell Brands, Gillead Sciences, L3 Technologies, Eastern Chemical Company, and HP.

Our Company should join the hundreds of major companies that enable shareholders to act by written consent.

Increase Shareholder Value

Vote for Right to Act by Written Consent—Proposal 5

 

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The Board unanimously recommends a voteAGAINST the foregoing proposal for the following reasons:

The Board believes that adopting the shareholder proposal would not be in the best interests of the Company or its shareholders.

NextEra Energy provides opportunities for shareholders to participate in proposed actions through annual meetings and special meetings.

Under the Bylaws, shareholders may present items for consideration at an annual or special meeting of shareholders. Shareholders may propose items for business at the annual meeting by following the procedures set forth in the Company’s governing documents. Shareholders owning at least 20% of the Company’s common stock may call a special meeting in between annual meetings. Shareholder meetings allow all shareholders to consider, discuss and vote on pending shareholder actions. Additionally, shareholder meetings provide that accurate and complete information about the proposed action is widely distributed in a proxy statement before the meeting, which promotes a well-informed discussion and consideration of the merits of the proposed action.

NextEra Energy also provides shareholders the opportunity to nominate directors through proxy access.

The Bylaws permit, on specified terms, a shareholder, or a group of up to 20 shareholders, owning continuously for at least three years shares representing an aggregate of at least 3% of the Company’s outstanding common shares to nominate and include in the Company’s proxy materials director nominees for up to 20% of the current membership of the Board or two directorships, whichever is greater. This provides yet another way for shareholders to participate in the governance of the Company.

Action by written consent is not an effective means for shareholders to express their views.

Action by written consent permits a small group of shareholders with no fiduciary duties to other shareholders to initiate action with no prior notice either to other shareholders or to the Company. This prevents all shareholders from having an opportunity to deliberate in an open and transparent manner and to consider arguments for and against any action, including the Company’s position. Additionally, proponents of an action by written consent do not need to satisfy any holding requirements with respect to the common stock. This would allow shareholders engaging in short-term speculation to potentially determine the outcome of any particular issue. Such shareholders may not act in the interests of long-term holders of the Company’s common stock.

NextEra Energy actively engages with shareholders in order to provide an open and constructive forum for dialogue.

The Company’s shareholder engagement efforts allow the Company to better understand our shareholders’ priorities and perspectives and enable the Company to effectively address the issues that matter most to its shareholders. The Company values the input and insights of its shareholders and is committed to continued engagement. In 2019 alone, the Company held more than 400 meetings or calls with more than 370 different institutional investors.

NextEra Energy has an established process by which shareholders may communicate with the Board.

In addition to annual and special meetings, shareholders have other avenues for raising important matters with the Board. The Company has procedures in place that provide its shareholders with the opportunity to communicate directly with members of the Board, including the independent Lead Director, as described in this proxy statement.

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NextEra Energy has strong corporate governance practices in place.

In addition to providing for shareholders’ right to call special meetings, the Company has an annually-elected Board, a majority voting standard for election of directors in uncontested elections, an independent Lead Director and proxy access bylaw provisions as described above. The Company’s governance practices are more fully described inGovernance Highlights of this proxy statement.

Unless you specify otherwise in your voting instructions, your proxy will be votedAGAINST proposal 5.

For the above reasons, the Board unanimously recommends a voteAGAINST this proposal

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INFORMATION ABOUT NEXTERA ENERGY AND MANAGEMENTInformation About NextEra Energy and Management

Section 16(a) Beneficial Ownership Reporting Compliance

The Company’s directors and executive officers are required to file initial reports of ownership and reports of changes of their beneficial ownership of NextEra Energy common stock with the SEC pursuant to Section 16(a) of the Exchange Act. Based solely upon a review of these filings and written representations from the directors and executive officers that no other reports were required of them, the Company believes that all required filings were timely made in 2019.

The Company’s Security Trading Policy

The Company’s Security Trading Policy (the “Trading Policy”) applies to Directors and officers of the Company and prohibits hedging transactions with respect to securities of the Company. The Trading Policy provides in relevant part as follows: “Additional Prohibited Transactions. The Company considers it improper and inappropriate for any Company insider to engage in short-term or speculative transactions in the Company’s securities. It therefore is the Company’s policy that insiders may not engage in any of the following transactions: …Hedging Transactions. Certain forms of hedging or monetization transactions with respect to the Company’s securities, such as prepaid variable forwards, equity swaps and collars, allow an insider to lock in much of the value of his or her stock holdings, often in exchange for all or part of the potential for upside appreciation in the stock. These transactions allow the insider to continue to own the covered securities, but without the full risks and rewards of ownership. When that occurs, the insider may no longer have the same objectives as the Company’s other shareholders. Therefore, these transactions are prohibited under this Policy….”

Common Stock Ownership of Certain Beneficial Owners and Management

The following table shows the beneficial ownership of NextEra Energy common stock as of December 31, 20162019 by the only persons known by the Company to own beneficially more than 5% of the outstanding shares of the Company’s common stock:stock based on 489,432,876 shares outstanding as of March 23, 2020.

 

  
Name and Address of Beneficial Owner  

Amount and Nature        

of Beneficial        

Ownership        

 Percent of Class 

Amount and Nature        

of Beneficial        

Ownership        

Percent of Class

BlackRock, Inc.

55 East 52nd Street

New York, NY 10055(1)

  37,446,093(1)  8.0

The Vanguard Group

100 Vanguard Blvd.

Malvern, PA 19355(2)

  35,000,629(2)  7.3
  

The Vanguard Group

100 Vanguard Blvd.

Malvern, PA 19355(1)

45,282,270(1)  9.25%
  

BlackRock, Inc.

55 East 52nd Street

New York, NY 10055(2)

40,313,416(2)  8.24%
  

State Street Corporation

State Street Financial Center

One Lincoln Street

Boston, MA 02111(3)

  24,886,717(3)  5.3326,728,768(3)  5.46%

 

(1)

This information has been derived from a statement on Schedule 13G/A of The Vanguard Group, filed with the SEC on February 10, 2020. As of December 31, 2019, The Vanguard Group, an investment adviser, reported that it had sole dispositive power with respect to 44,340,288 shares reported as beneficially owned; shared dispositive power with respect to 941,982 shares reported as beneficially owned; sole voting power as to 847,161 shares reported as beneficially owned; and shared voting power as to 264,542 shares reported as beneficially owned.

(2)

This information has been derived from a statement on Schedule 13G/A of BlackRock, Inc., filed with the SEC on January 25, 2017.February 7, 2020. As of December 31, 2016,2019, BlackRock, Inc., a parent holding company, reported that it had sole dispositive power with respect to all of the shares reported as beneficially owned and sole voting power as to 33,228,51835,306,696 of such shares.

(2)

This information has been derived from a statement on Schedule 13G/A of The Vanguard Group, filed with the SEC on February 10, 2017. As of December 31, 2016, The Vanguard Group, an investment adviser, reported that it had sole dispositive power with respect to 34,176,502 shares reported as beneficially owned; shared dispositive power with respect to 824,127 shares reported as beneficially owned; sole voting power as to 774,931 shares reported as beneficially owned; and shared voting power as to 96,865 shares reported as beneficially owned.

 

(3)

This information has been derived from a statement on Schedule 13G of State Street Corporation, filed with the SEC on February 8, 2017.14, 2020. As of December 31, 2016,2019, State Street Corporation, a parent holding company, reported that it had shared dispositive power with respect to 26,719,430 shares reported as beneficially owned and shared voting power with respect to all of the22,973,263 shares reported as beneficially owned.

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The table below shows the number of shares of NextEra Energy common stock beneficially owned as of March 17, 201723, 2020 by each of NextEra Energy’s directors (all of whom are nominees for director) and each named executive officer listed inTable 1a: 2016 Summary Compensation Tablein the Executive Compensationsection of this proxy statement, as well as the number of shares beneficially ownedNEOs and by all of NextEra Energy’s directors and executive officers as a group. As of March 17, 2017, each individual beneficially owned less than 1%, and23, 2020, all directors and executive officers as a group beneficially owned less than 1%, of NextEra Energy common stock. No shares are pledged as security. The table also includes information about phantom or deferred shares credited to the accounts of NextEra Energy’s directors and executive officers under various compensation and benefit plans.

 

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 Common Stock Beneficially Owned  

Phantom/Deferred
Shares(4)

  

Common Stock Beneficially Owned

 

  

Phantom/Deferred
Shares(4)

 

 
Name Shares Owned(1)  Shares Which May Be
Acquired Within
60 Days(2)
  Total Shares
Beneficially Owned(3)
   

Shares Owned(1)

 

  

Shares Which May Be
Acquired Within
60 Days(2)

 

  

Total Shares
Beneficially Owned(3)

 

 
  

Sherry S. Barrat

  28,860   2,517   31,377   13,951   26,729   2,716   29,445   15,043 
  

James L. Camaren

  31,760   0   31,760   6,844   36,330   0   36,330   7,380 

Moray P. Dewhurst(5)

  3,855   263,348   267,203   0 
  

Kenneth B. Dunn

  15,420   0   15,420   0   17,990   0   17,990   0 
  

Naren K. Gursahaney

  2,740   2,570   5,310   0   5,310   2,570   7,880   0 
  

Kirk S. Hachigian

  5,520   0   5,520   0   8,090   0   8,090   0 
  

Toni Jennings

  19,060   0   19,060   0   21,630   0   21,630   0 
  

John W. Ketchum

  23,655   6,255   29,910   1,842   21,698   67,300   88,998   3,243 
  

Rebecca J. Kujawa

  10,166   4,676   14,842   484 
  

Amy B. Lane

  4,400   1,303   5,703   0   4,399   4,067   8,466   0 

Manoochehr K. Nazar

  115,994   158,983   274,977   9,070 

Armando Pimentel, Jr.

  87,148   205,801   292,949   7,352 
  

Manoochehr K. Nazar(5)

  114,160   211,205   325,365   11,466 
  

Armando Pimentel(6)

  74,150   223,235   297,385   0 
  

David L. Porges

  7,035   623   7,658   0 
  

James L. Robo

  474,895(6)   664,983   1,139,878(6)   138,463   310,874(7)   701,412   1,012,286   375,975 
  

Rudy E. Schupp

  22,060(7)   0   22,060(7)   0   15,030(8)   0   15,030   0 
  

Charles E. Sieving

  44,238   38,365   82,603   5,978 
  

Eric E. Silagy

  38,300   67,663   105,963   4,334   48,146   134,526   182,672   6,424 
  

John L. Skolds

  8,294   0   8,294   0   10,690   0   10,690   0 
  

William H. Swanson

  25,180   0   25,180   0   27,750   0   27,750   0 

Hansel E. Tookes, II

  1,791   21,060   22,851   0 

All directors and executive officers as a group (23 persons)

  1,147,220   1,319,080   2,466,300   197,823 
  

Darryl L. Wilson

  2,003   0   2,003   228 
  

All directors and executive officers as a group (25 persons)

  799,985   1,134,508   1,934,493   428,563 

 

(1)

Includes shares of restricted stock (performance-based for executive officers) for Messrs. Dewhurst (3,851), Ketchum (6,007)(3,342), Nazar (8,809)(3,064), Pimentel (9,903)(1,065), Robo (29,196)(3,235), Sieving (2,078) and Silagy (7,642)(6,503) and Mrs. Kujawa (3,357), as well as for Mrs. Barrat (7,800), Ms. Lane (1,310) and Messrs.Mr. Camaren (3,200), Gursahaney (590), Hachigian (400), and Skolds (400), and a total of 89,95856,885 shares of restricted stock for all directors and executive officers as a group. The holders of such shares of restricted stock have voting power, but not dispositive power.

(2)

Includes, for executive officers, shares which may be acquired as of or within 60 days after March 17, 2017,23, 2020, upon the exercise of stock options and, for directors, shares payable under the Company’s Deferred Compensation Plan, amended and restated effective January 1, 2003 (the “Frozen Deferred Compensation Plan”) or the NextEra Energy, Inc. Deferred Compensation Plan effective January 1, 2005, as amended and restated through February 11, 2016, as amended (the “Successor Deferred Compensation Plan”), the receipt of which has been deferred until the first day of the month after termination of service as a Board member, except for Mr. Wilson, the receipt of which has been deferred until the first day of the year after termination of service as a Board member. The Frozen Deferred Compensation Plan and the Successor Deferred Compensation Plan are collectively referred to as the “Deferred Compensation Plan.”

(3)

Represents the total number of shares listed under the columns “Shares Owned” and “Shares Which May Be Acquired Within 60 Days.” Under SEC rules, beneficial ownership as of any date includes any shares as to which a person, directly or indirectly, has or shares voting power or dispositive power and also any shares as to which a person has the right to acquire such voting or dispositive power as of or within 60 days after such date through the exercise of any stock option or other right.

(4)

Includes phantom shares under the FPL Group, Inc. Supplemental Executive Retirement Plan, amended and restated effective April 1, 1997 (the “Frozen SERP”), and the NextEra Energy, Inc. (f/k/a FPL Group, Inc.) Supplemental Executive Retirement Plan, amended and restated effective January 1, 2005 (the “Restated SERP”). The Frozen SERP and the Restated SERP are collectively referred to as the “SERP.” Also includes, for Mr. Robo, 69,22974,724 shares held by the trustee of a grantor trust pursuant to a deferred stock grant made under the LTIP, as to which he has neither voting nor dispositive power, and 44,71148,269 shares, the receipt of which is deferred pursuant to the terms of a deferred stock grant under the NextEra Energy, Inc. Amended and Restated 2011 LTIP.Long Term Incentive Plan (“2011 LTIP”), and 221,920 shares, the receipt of which is deferred pursuant to an election made under the NextEra Energy, Inc. Deferred Compensation Plan.

(5)

Mr. Dewhurst retiredNazar is no longer a Section 16 officer as vice chairman and chief financial officer in March 2016,of January 1, 2020 and, therefore, is not included in the group total.

(6)

Mr. Pimentel retired as President and CEO of NextEra Energy Resources in March 2019 and, therefore, is not included in the group total.

(7)

Includes 73,550104,842 shares held by Mr. Robo’s spouse’s Gifting Trust,gifting trusts, the trustee of which is Mr. Robo, 76,431107,632 shares held by the James L. Robo Gifting Trust, the trustee of which is Mr. Robo’s spouse, and 3,35620,000 shares owned by Mr. Robo’s spouse.

(7)(8)

Includes 200 shares owned by Mr. Schupp’s spouse, as to which Mr. Schupp disclaims beneficial ownership.

 

2925


Section 16(a) Beneficial Ownership Reporting Compliance

The Company’s directorsCorporate Governance and executive officers are required to file initial reports of ownership and reports of changes of their beneficial ownership of NextEra Energy common stock with the SEC pursuant to Section 16(a) of the Exchange Act. Based solely upon a review of these filings and written representations from the directors and executive officers that no other reports were required of them, the Company believes that all required filings were timely made in 2016.

CORPORATE GOVERNANCE AND BOARD MATTERSBoard Matters

Corporate Governance Principles & Guidelines/Code of Ethics

NextEra EnergyThe Board has had formal corporate governanceadopted the Governance Guidelines that set forth expectations for directors, director independence standards, in effect since 1994. The Governance & Nominating Committee is responsibleboard committee structure and functions and other policies for reviewing the Corporate Governance Principles & Guidelines and reporting and making recommendations to the Board concerning corporate governance matters.Company’s governance. NextEra Energy has adopted a Code of Ethics for Senior Executive and Financial Officers which applies to NextEra Energy’s chairman, president and chief executive officer, executive vice president, finance and chief financial officer, treasurer, chief tax officer, executive vice president & general counsel, vice president, controller and chief accounting officer, and the president and chief executive officers of FPL and NextEra Energy Resources, as well as a Code of Business Conduct & Ethics applicable to all representatives of NextEra Energy and its subsidiaries, including directors, officers and employees. The Corporate Governance Principles & Guidelines,employees, as well as a Code of Ethics for Senior Executive and Financial Officers and Code of Business Conduct & Ethics(“Senior Code”), which applies to certain senior executive officers. These documents are available on the Company’s website atwww.nexteraenergy.com/investors/governance.shtml.www.investor.nexteraenergy.com/corporate-governance. Any amendments or waivers of the Code of Ethics for Senior Executive and Financial Officers which are required to be disclosed to shareholders under SEC rulesCode will be disclosed on the NextEra Energyat this website at the address listed above.

Director Resignation Policy

Under the Bylaws, in an uncontested election, directors are elected by a majority of the votes cast. The Board has adopted a Policy on Failure of Nominee Director(s) to Receive a Majority Vote in an Uncontested Election (“Director Resignation Policy”), the effect of which is to require that, in any uncontested director election, any incumbent director who is not elected by the required vote shall offer to resign, and the Board shall determine whether or not to accept the resignation within ninety days of the certification of the shareholder vote. The Company will report the action taken by the Board under the Director Resignation Policy in a publicly-available forum or document.

The Bylaws provide that, in a contested election, director nominees are elected by a plurality of the votes cast.address.

Director Independence

The Board conducts an annual review regarding the independence from the Company’s management of each of its members and, in addition, assesses the independence of any new member at the time that the new member is considered for appointment or nomination for election to the Board. TheIn assessing independence, the Board considers all relevant facts and circumstances and uses the criteria set forth instandards established by the NYSE corporate governance independence standards (the “NYSE standards”New York Stock Exchange (“NYSE”) to assess director independence. These standards areand also set forth or referred to in the Corporate Governance Principles & Guidelines, a copy of which is available on the Company’s website atwww.nexteraenergy.com/investors/governance.shtml.Guidelines. The NYSE standards and the Corporate Governance Principles & Guidelines require that NextEra Energy hashave a majority of independent directors and provide that the Board must affirmatively determine with respect tothat each such director that the director has no material relationship with the Company (either directly or as a

30


partner, shareholder or officer of an organization that has a relationship with the Company) in order to determine that the director is independent. As set forth in the Corporate Governance Principles & Guidelines, the Board considers all relevant facts and circumstances in making independence determinations. In particular, when assessing the materiality of a director’s relationship (if any) with the Company, the Board considers materiality both from the standpoint of the director and from the standpoint of persons or organizations with which the director has an affiliation. Material relationships for this purpose may include commercial, industrial, banking, consulting, legal, accounting, charitable and familial relationships, among others.

In addition to the subjective standard described above, the NYSE standards have objective tests for determining who is an “independent director.” Under the objective tests, a director cannot be considered independent if he or she:

is an employee of the Company, or has an immediate family member who is an executive officer of the Company, until three years after the employment relationship ended;

receives, or has an immediate family member who has received (other than as a non-executive officer employee of the Company), during any 12-month period within the last three years, more than $120,000 in direct compensation from the Company (other than director and committee fees and pension or other forms of deferred compensation for prior service and not contingent on continued service), until three years after that amount is no longer received;

is a current partner or employee of Deloitte & Touche or has an immediate family member who is either (a) a current partner of Deloitte & Touche or (b) a current employee of Deloitte & Touche who personally works on the Company’s audit, until three years after these relationships with Deloitte & Touche have ended;

is an executive officer, or whose immediate family member is an executive officer, of another company where any of the Company’s present executive officers serve on that other company’s compensation committee, until three years after the end of that service or employment relationship; or

is an employee, or whose immediate family member is an executive officer, of a company that makes payments to, or receives payments from, the Company for property or services in an amount which, in any single fiscal year, exceeds the greater of (a) $1,000,000 or (b) 2% of such other company’s consolidated gross revenues, until three years after falling below that threshold.

The NYSE standards and the Corporate Governance Principles & Guidelines also require that each of the Compensation Committee, the Governance & Nominating Committee and the Audit Committee consist entirely of independent directors. The NYSE standards and Rule 10A-3 under the Exchange Act include the additional requirement that members of the Audit Committee may not accept directly or indirectly any consulting, advisory or other compensatory fee from the Company other than their director compensation. The NYSE standards also require that, when determining the independence of members of the Compensation Committee, the Board is to consider all factors specifically relevant to determining whether a director has a relationship with NextEra Energy which is material to the director’s ability to be independent from management in connection with the director’s duties on the Compensation Committee, including, but not limited to, consideration of the sources of compensation of Compensation Committee members, including any consulting, advisory or other compensatory fees paid by NextEra Energy, and whether any Compensation Committee member is affiliated with NextEra Energy or any of its subsidiaries or affiliates. Compliance by Audit Committee members and Compensation Committee members with these requirements is separately assessed by the Board.

Based on its review, conducted in accordance with the Company’s Corporate Governance Principles & Guidelines and the NYSE standards, the Board determined in February 2017 that Sherry S. Barrat, James L. Camaren, Kenneth B. Dunn, Naren K. Gursahaney, Kirk S. Hachigian, Toni Jennings, Amy B. Lane, David L. Porges, Rudy E. Schupp, John L. Skolds, William H. Swanson, and Hansel E. Tookes, II,Darryl L. Wilson, constituting all 11 12non-employee directors, of NextEra Energy, are independent under the NYSE standards (including, where applicable, the

31


separate Audit Committee and Compensation Committee standards) and the Corporate Governance Principles & Guidelines.

In determining that Mr. Schupp is independent, the Board considered that a NextEra Energy subsidiary has employed Mr. Schupp’s son since June 2011 innon-executive business roles, for total compensation in 20162019 of approximately $141,000. In determining that Mr. Gursahaney is independent, the Board considered that, in 2016, a NextEra Energy subsidiary purchased electrical transformers, through transactions determined by competitive bids, from a manufacturer in which Mr. Gursahaney’s sister-in-law is an owner and in which Mr. Gursahaney has no interest of any nature.$190,000.

Board Leadership Structure

As set forth in the Corporate Governance Principles & Guidelines, theThe Board believes that the decision as to who should serve as chairman and as chief executive officer (“CEO”) and whether the offices should be combined or separate, is properly the responsibility of the Board to be exercised from time to time in appropriate consideration of the Company’s then-existing characteristics or circumstances. In view of the Company’s operating record, including its role as a national leader in renewable energy generation, and the operational and financial opportunities and challenges faced by the Company, the Board’s judgment is that the functioning of the Board is generally best served by maintaining a structure of having one individual serve as both chairman and chief executive officer.CEO. The Board believes that having a single person acting in the capacities of chairman and chief executive officerCEO promotes unified leadership and direction for the Board and executive management and allows for a single, clear focus for the chain of command to execute the Company’s strategic initiatives and business plans and to address its challenges. However, in certain circumstances, such as the transition from one chief executive officerCEO to another, the Board believes that it may be appropriate for the roles of the chief executive officerCEO and the chairman to be separated.

The Board has an independent Lead Director selected by and from the independent directors (with strong consideration given to present and past committee chairs). The Lead Director serves atwo-year term if continuing as a director, commencing on the date of the Company’s annual meeting of shareholders. Unless the independent directors determine otherwise due to particular circumstances, no director will serve as the Lead Director for more than onetwo-year term on a consecutive basis. In 2016,Rudy E. Schupp currently serves as the Lead

26


Director, having been appointed in May 2018. The independent directors selected Sherry S. Barratwill appoint a successor to serveMr. Schupp as the Lead Director untilat the 2018 annual meeting of shareholders.the Board immediately following the 2020 annual meeting.

The Lead Director has the following duties and authorities:

 

to act, on anon-exclusive basis, as liaison between the independent directors and the chairman;

 

to approve the Board agenda and information sent to the Board;

 

to preside at Board meetings in the absence of the chairman and to chair executive sessions of thenon-management directors;

 

to approve meeting schedules to assure that there is sufficient time for discussion of all agenda items;

 

to call executive sessions of the independent directors;

 

if requested by major shareholders, to be available, when appropriate, for consultation and direct communication consistent with the Company’s policies regarding communications with shareholders;

 

to communicate Board member feedback to the chief executive officer;CEO; and

 

to have such other duties as may from time to time be assigned by the Board.

Executive sessions of the independent directors are provided for in the agenda for each regularly-scheduled Board meeting and each regularly-scheduled committee meeting (other than quarterly earnings review meetings of the Audit Committee). As noted above, the Lead Director chairs the Board executive sessions and thereafter provides feedback to the chief executive officer. Committee executive sessions are chaired by the committee chairs, all of whom are independent directors (with the exception of the Executive

32


Committee, which is chaired by the chairman of the board and meets only on an as-needed basis). The Board believes that having an independent Lead Director, regular Board and committee executive sessions, a substantial majority of independent directors and the corporate governance structures and processes described in this proxy statement allowsallow the Board to maintain effective oversight of management.

Board Refreshment and Diversity

Board Refreshment. Each year the Board engages in a self-evaluation process which is conducted by the Governance & Nominating Committee. Members of the Board are surveyed to assess the effectiveness of the Board’s membership and oversight processes and to solicit input from members of the Board for improvements to the Board’s functions. With the input of the Governance & Nominating Committee, recommendations from Board members are incorporated into Board processes and Board agenda topics. This annual self-evaluation process ensures that the Board periodically considers improvements to Board processes and procedures.27

In addition to annually examining the Board and the Board committee processes and procedures, the Board and the Governance & Nominating Committee engage in a continuous process of considering the mix of skills and experience needed by the Board as a whole to discharge its responsibilities. During the period from July 2012 to February 2015, five new members joined the Board, adding significantly to the skills, expertise and experience of the Board.

Diversity. Diversity is among the factors the Governance & Nominating Committee considers when identifying and evaluating potential Board nominees. The Corporate Governance Principles & Guidelines provide that, in identifying nominees for director, the Company seeks to achieve a mix of directors representing a diversity of background and experience, including diversity with respect to age, gender, race, ethnicity and specialized experience. Diversity is weighted equally with the other factors considered when identifying and evaluating Board nominees. In the Board’s annual self-evaluation, it reviews the criteria for skills, experience and diversity reflected in the Board’s membership, and also reviews the Board’s process for identification, consideration, recruitment and nomination of prospective Board members.


Board Role in Risk Oversight

The Board discharges its risk oversight responsibilities primarily through its committees, each of which reportscommittees. The Board exercises its activities to the Board at the next succeeding Board meeting. Therole in risk oversight responsibilitiesin a variety of the committees includeways, including the following:

 

Audit Committee 

Audit Committee. The Audit Committee is responsible for overseeing  Oversees the integrity of the Company’s financial statements, the independent auditor’s qualifications and independence, the performance of the Company’s internal audit function compliance with legal and regulatory requirements, and the Company’s accounting and financial reporting processes. As part of its duties, the Audit Committee discussesprocesses

  Oversees compliance with legal and regulatory requirements

  Discusses with management the Company’s policies with respect to risk assessment and risk management reviews

  Reviews and discusses the Company’s major financial risk exposures and the steps management has taken to monitor and control those exposures and ensures

  Ensures that risks identified from time to time as major risks are reviewed by the Board or a Board committee.committee

 

Finance & Investment Committee. The Finance & Investment Committee is responsible for reviewing

  Reviews and monitoringmonitors the Company’s financing plans reviewing

  Reviews and makingmakes recommendations regarding the Company’s dividend policy reviewing

  Reviews risk management activities and exposures related to the Company’s energy trading and marketing operations reviewing

  Reviews the Company’s major insurance lines and overseeing

  Oversees the risks associated with financing strategy, financial policies and the use of financial instruments, including derivatives.derivatives

Nuclear Committee 

Nuclear Committee. The Nuclear Committee is responsible for reviewing  Reviews the safety, reliability and quality of nuclear operations reviewing

  Reviews reports issued by external oversight groups and reviewing

  Reviews the Company’s long-term strategies and plans relatingrelated to its nuclear operations.operations

33


Compensation Committee 

Compensation Committee. The Compensation Committee is responsible for oversight of  Oversees compensation-related risks, including annually reviewing management’s assessment of risks related to employee compensation programs.programs

  Oversees the compensation risk mitigation practices and controls that the Company has in place

NextEra Energy’s chief executive officer servesCEO, as the Company’s chief risk officer. In that capacity, the chief executive officer, together with other members of the Company’s senior management team, oversees the execution and monitoring of the Company’s risk management policies and procedures. NextEra Energy’s management maintains a number of risk oversight committees that assess operational and financial risks throughout the Company. NextEra Energy also has a Corporate Risk Management Committee, composed of senior executives, that assesses the Company’s strategic risks and the strategies employed to mitigate those risks. The Board committees discussed above meet periodically with the Company’s senior management team to review the Company’s risk management practices and key findings.

Board Evaluations

Each year the Board engages in a self-evaluation process which is conducted by the Governance & Nominating Committee. Members of the Board are surveyed to assess the effectiveness of the Board’s membership and oversight processes and to solicit input from members of the Board for improvements to

28


the Board’s functions. With the input of the Governance & Nominating Committee, recommendations from Board members are incorporated into Board processes and Board agenda topics. This annual self-evaluation process ensures that the Board periodically considers improvements to Board processes and procedures.

Director Meetings and Attendance

The Board and its committees meet on a regular schedule and also hold special meetings from time to time. Executive sessions of the independent directors are scheduled in the agenda for each regularly-scheduled Board meeting. The Board met sevensix times in 2016.2019. Each director attended at least 75%more than 94% of the total number of Board meetings and meetings of the committees on which he or she served during the period of such director’s committee service.

2019. Absent circumstances that cause a director to be unable to attend the Board meeting held in conjunction with the annual shareholders’ meeting, Board members are required to attend the annual shareholders’ meeting. All 12 of theThe thirteen directors then in office at the time attended the 20162019 annual meeting of shareholders.

Board Committees

The standing committees of the Board are the Audit Committee, the Compensation Committee, the Governance & Nominating Committee, the Finance & Investment Committee, the Nuclear Committee and the Executive Committee. The committees regularly report their activities and actions to the full Board, generally at the Board meeting next following the committee meeting. Executive sessions are held after each regularly-scheduled committee meeting (other than quarterly earnings review meetings of the Audit Committee) and are chaired by the committee chairs. Each of the committees operates under a charter approved by the Board and each committee (other than the Executive Committee) conducts an annual self-evaluation of its performance. The charter of each of the Audit Committee, the Compensation Committee and the Governance & Nominating Committee is required to comply with the NYSE corporate governance requirements. There are no NYSE requirements for the charters of the Finance & Investment Committee, the Nuclear Committee or the Executive Committee. Each of the committees is permitted to take actions within its authority through subcommittees, and references in this proxy statement to any of those committees include any such subcommittees. Current copies of the charters of the committees are available on the Company’s website atwww.nexteraenergy.com/investors/governance.shtml.www.investor.nexteraenergy.com/corporate-governance. The current membership and primary functions of the committees are described below.

Audit Committee

NextEra Energy has an Audit Committee established in accordance with applicable provisions of the Exchange Act and the NYSE standards. The Audit Committee is currently composed of Mrs. Barrat, Ms. Jennings and Messrs. Swanson (Chair), Gursahaney and Skolds. The Audit Committee met nine times in 2016, and at such meetings met regularly with Deloitte & Touche and the internal auditor, both privately and in the presence of management. The Audit Committee has the authority to appoint or replace the Company’s independent registered public accounting firm and approves all permitted services to be performed by the firm. The Audit Committee also approves the engagement of any other registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services. The Audit Committee assists the Board in overseeing the integrity of the financial statements, compliance with legal and regulatory requirements, the independent registered public accounting firm’s qualifications, performance and independence, the performance of the Company’s

Audit Committee

Members:

Primary Responsibilities:

Meetings in 2019:

William H. Swanson (Chair)

Kenneth B. Dunn

Naren K. Gursahaney

Toni Jennings

John L. Skolds

Darryl L. Wilson

All members are independent and financially literate under applicable NYSE and SEC requirements

Mr. Swanson and Mr. Gursahaney are audit committee financial experts under the definition provided by the SEC

  Appoints the Company’s independent registered public accounting firm and approves all permitted services to be performed by the firm

  Reviews the independent registered public accounting firm’s qualifications, performance and independence

  Approves the engagement of any other registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services

  Assists the Board in overseeing the integrity of the financial statements and compliance with legal and regulatory requirements

  Assists the Board in overseeing the performance of the Company’s internal audit function, the accounting and financial reporting processes of the Company and audits of the Company’s financial statements

  Establishes procedures for the receipt, retention and treatment of complaints and concerns received by the Company regarding accounting, internal accounting controls or auditing matters and the confidential, anonymous submission of concerns regarding questionable accounting or auditing matters

Eight

 

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internal audit function, the accounting and financial reporting processes of the Company and audits of the Company’s financial statements. The Audit Committee is responsible for establishing procedures for the receipt, retention and treatment of complaints and concerns received by the Company regarding accounting, internal accounting controls or auditing matters and the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters. The Audit Committee conducts an annual self-evaluation. The Audit Committee Charter, a copy of which is available on NextEra Energy’s website atwww.nexteraenergy.com/investors/governance.shtml, contains a more detailed description of the Audit Committee’s responsibilities.

The Board has determined that each member of the Audit Committee satisfies the “financial literacy” standard of the NYSE and that Mr. Swanson and Mr. Gursahaney each is an “audit committee financial expert” as that term is defined by applicable SEC rules and, accordingly, has accounting or related financial management expertise under NYSE standards. In addition, the Board has determined that each member of the Audit Committee, including each audit committee financial expert, is independent under the NYSE standards, Rule 10A-3 under the Exchange Act and the Corporate Governance Principles & Guidelines.

The Audit Committee Report for 2016 begins at page 41.

Compensation Committee

The Compensation Committee is currently composed of Ms. Lane and Messrs. Hachigian (Chair), Dunn, Schupp and Tookes. The Compensation Committee met four times in 2016. The Board has determined that each member of the Compensation Committee is independent under the NYSE standards and the Corporate Governance Principles & Guidelines.

The Compensation Committee has the authority to review and approve corporate goals and objectives relevant to the compensation of the chief executive officer and the other executive officers, evaluate the performance of the chief executive officer in light of those goals and objectives, approve the compensation of the chief executive officer and the other executive officers, approve any compensation-related agreements for the chief executive officer and the other executive officers, and make recommendations to the Board with respect to the compensation of the directors. Additional responsibilities include overseeing the preparation of theCompensation Discussion& Analysis section of this proxy statement and approving the annual Compensation Committee Report, reviewing the results of the Company’s shareholder advisory vote on the compensation of its named executive officers, making recommendations to the Board with respect to incentive compensation plans and other equity-based plans, administering the Company’s annual and long-term incentive plans and non-employee directors stock plan, and retaining, approving the terms of retaining, and assessing the independence of any outside compensation consultants engaged to assist in the evaluation of director, chief executive officer and other executive officer compensation. The Compensation Committee is responsible for oversight of compensation-related risks, including reviewing management’s assessment of risks related to employee compensation programs. The Compensation Committee conducts an annual self-evaluation. The Compensation Committee Charter, a copy of which is available on NextEra Energy’s website atwww.nexteraenergy.com/investors/governance.shtml, contains a more detailed description of the Compensation Committee’s responsibilities.

As permitted under the terms of the 2011 LTIP, the Board has delegated to the chief executive officer the authority to make equity grants to employees who are not executive officers. The Compensation Committee has the authority to review these awards. In addition, the Compensation Committee delegated to the chief executive officer and the most senior human resources officer its authority to identify participants in the 2013 Executive Annual Incentive Plan (the “Annual Incentive Plan”) other than executive officers and to establish the terms and conditions pursuant to which incentive compensation for 2016 was payable to such other participants. The Compensation Committee has not delegated any other authority granted to it.

Compensation Committee

Members:

Kirk S. Hachigian (Chair)

Sherry S. Barrat

James L. Camaren

Amy B. Lane

Hansel E. Tookes, II

All members meet the NYSE standards for independence

Primary Responsibilities:

  Reviews and approves corporate goals and objectives relevant to the compensation of the CEO and the other executive officers

  Evaluates the performance of the CEO in light of those goals and objectives, approves the compensation of the CEO and the other executive officers, approves any compensation-related agreements for the CEO and the other executive officers and makes recommendations to the Board with respect to thenon-employee directors’ compensation

  Oversees the preparation of theCompensation Discussion & Analysis section of this proxy statement and approves the Compensation Committee Report

  Reviews the results of the Company’s shareholder advisory vote on the compensation of the NEOs, makes recommendations to the Board with respect to incentive compensation plans and other equity-based plans and administers the Company’s annual and long-term incentive plans andnon-employee directors stock plan

  Retains, and assesses the independence of, any outside compensation consultants engaged to assist in the evaluation of executive compensation

Meetings in 2019:

Four

Governance & Nominating Committee

Members:

Rudy E. Schupp (Chair)

James L. Camaren

Naren K. Gursahaney

Kirk S. Hachigian

Toni Jennings

All members meet the NYSE standards for independence

Primary Responsibilities:

  Reviews the size and composition of the Board, identifies and evaluates potential nominees for election to the Board and recommends candidates for all directorships to be elected by shareholders or appointed by the Board

  Reviews the Governance Guidelines, the Related Person Transactions Policy and the content of the Code of Business Conduct & Ethics and the Senior Code and recommends any proposed changes to the Board

  Oversees the evaluation of the Board

  Makes recommendations to the Board regarding the business of the annual meeting of shareholders, as well as with respect to shareholder proposals that may be considered at the annual meeting

Meetings in 2019:

Four

 

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Compensation Committee Agenda and Processes; Role of External Consultants

The Compensation Committee plans its agendas to ensure a thorough and thoughtful decision process. Typically, information regarding strategic decisions with respect to the NEOs is presented at one meeting to the Compensation Committee, which makes its decision at a subsequent meeting. This allows time for follow-up questions from Compensation Committee members in advance of the final decision.

During 2016, following an independence evaluation (taking into account all factors required by applicable law or NYSE listing standards, and such other factors as the Committee considered appropriate), the Compensation Committee engaged Frederic W. Cook & Co., Inc. (“Cook”), an independent executive compensation consulting firm which performed no other services for NextEra Energy or its affiliates, to provide advice and counsel to the Compensation Committee from time to time. Cook is sometimes referred to as the “Compensation Consultant.” In 2016, the Compensation Consultant participated in all Compensation Committee meetings. In accordance with its engagement letter, during the 2016 executive compensation cycle, Cook provided the Compensation Committee and the Company with analysis and advice on topics such as pay competitiveness and executive compensation program plan design. Cook also benchmarked and discussed with the Compensation Committee its recommendation with respect to non-employee director compensation. The Compensation Consultant also monitored current and emerging market trends and reported to the Compensation Committee on such trends and their impact on Company compensation practices. Cook has reviewed theCompensation Discussion& Analysis andCompensation Committee sections of this proxy statement andProposal 3: Approval, by non-binding advisory vote, of NextEra Energy’s compensation of its named executive officers as disclosed in this proxy statement.

The Compensation Committee had an executive session at the end of each of its 2016 meetings, during which no executive officers were present. During the appropriate executive sessions, the committee evaluated the performance of the chairman and chief executive officer, discussed and approved the compensation of the chairman and chief executive officer, met with the Compensation Consultant and discussed and considered such other matters as it deemed appropriate.

Compensation Risk Assessment

In February 2017, the Compensation Committee reviewed management’s analysis of the Company’s compensation program risks and mitigation of those risks, as well as the Company’s ongoing compensation risk management process. During this review, the Committee discussed, among other matters, the Board’s overall role in the oversight of the Company’s risk, the Compensation Committee’s role in the oversight of compensation-related risk, the Company’s most significant risks, the relationship of those risks to the Company’s compensation programs and policies, and the compensation risk-related risk mitigation practices and controls which the Company has in place.

Compensation Consultant Conflicts Assessment

In February 2017, the Compensation Committee assessed the independence of Cook in accordance with SEC rules and concluded that the Compensation Consultant’s work for the Compensation Committee did not raise any conflicts of interest.

Finance & Investment Committee

Members:

Amy B. Lane (Chair)

Sherry S. Barrat

Kenneth B. Dunn

David L. Porges

Rudy E. Schupp

William H. Swanson

Hansel E. Tookes, II

All members meet the NYSE standards for independence

Primary Responsibilities:

  Reviews and monitors the Company’s financing plans

  Reviews and makes recommendations to the Board regarding the Company’s dividend policy

  Reviews the Company’s risk management activities and exposures related to its energy trading and marketing operations

  Reviews certain proposed capital expenditures

  Reviews the performance of the Company’s pension, nuclear decommissioning and other investment funds

Meetings in 2019:

Six

Nuclear Committee

Members:

John L. Skolds (Chair)

Mr. Skolds meets the NYSE standards for independence

Primary Responsibilities:

  Meets with senior members of the Company’s nuclear division

  Reviews the operation of the Company’s nuclear division and makes reports and recommendations to the Board with respect to such matters

  Reviews, among other matters, the safety, reliability and quality of the Company’s nuclear operations and the Company’s long-term strategies and plans for its nuclear operations

Meetings in 2019:

Four

Governance & Nominating Committee

The Governance & Nominating Committee is currently composed of Mrs. Barrat (Chair), Ms. Jennings and Messrs. Camaren, Gursahaney and Schupp. The Governance & Nominating Committee met five times in 2016. The Board has determined that each member of the committee is independent under the NYSE standards and the Corporate Governance Principles & Guidelines. The committee is responsible for reviewing the size and composition of the Board, identifying and evaluating potential nominees for election to the Board consistent with criteria developed by the committee and approved by the Board, and

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recommending candidates for all directorships to be filled by the shareholders or the Board, subject to the Director Resignation Policy discussed above. The committee will consider potential nominees recommended by any shareholder entitled to vote in elections of directors, as discussed below underConsideration of Director Nominees. In addition, the committee is responsible for reviewing the Corporate Governance Principles & Guidelines, the Related Person Transactions Policy and the content of the Code of Business Conduct & Ethics and the Code of Ethics for Senior Executive and Financial Officers, and recommending any proposed changes to the Board, and overseeing the evaluation of the Board. The Governance & Nominating Committee conducts an annual self-evaluation.

The Governance & Nominating Committee Charter, a copy of which is available on NextEra Energy’s website atwww.nexteraenergy.com/investors/governance.shtml, contains a more detailed description of the Governance & Nominating Committee’s responsibilities.

Finance & Investment Committee

The Finance & Investment Committee is currently composed of Ms. Lane and Messrs. Tookes (Chair), Camaren, Dunn, Hachigian and Swanson. The Finance & Investment Committee met six times in 2016. The committee’s functions include reviewing and monitoring the Company’s financing plans, reviewing and making recommendations to the Board regarding the Company’s dividend policy, reviewing the Company’s risk management activities and exposures related to its energy trading and marketing operations, reviewing certain proposed capital expenditures and reviewing the performance of the Company’s pension, nuclear decommissioning and other investment funds. The Finance & Investment Committee conducts an annual self-evaluation.

The Finance & Investment Committee Charter, a copy of which is available on NextEra Energy’s website atwww.nexteraenergy.com/investors/governance.shtml, contains a more detailed description of the Finance & Investment Committee’s responsibilities.

Nuclear Committee

Mr. Skolds (Chair) is the sole member of the Nuclear Committee, which meets with senior members of the Company’s nuclear division. The Nuclear Committee met four times in 2016. The committee’s purpose is to review the operation of the Company’s nuclear division and make reports and recommendations to the Board with respect to such matters. The Committee is authorized to review, among other matters, the safety, reliability and quality of the Company’s nuclear operations and the Company’s long-term strategies and plans for its nuclear operations.

The Nuclear Committee Charter, a copy of which is available on NextEra Energy’s website atwww.nexteraenergy.com/investors/governance.shtml, contains a more detailed description of the Nuclear Committee’s responsibilities.

Executive Committee

Members:

The Executive Committee is currently composed of Mrs. Barrat and Messrs.

James L. Robo (Chair),

Kirk S. Hachigian

Amy B. Lane

Rudy E. Schupp

William H. Swanson and Tookes. The Executive Committee did not meet in 2016. The committee’s function is to provide

Primary Responsibilities:

  Provides an efficient means of considering such matters and taking such actions as may require the attention of the Board or the exercise of the Board’s powers or authorities when the Board is not in session.session

Meetings in 2019:

The Executive Committee Charter, a copy of which is available on NextEra Energy’s website atwww.nexteraenergy.com/investors/governance.shtml, contains a more detailed description of the Executive Committee’s responsibilities.None

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Consideration of Director Nominees

Proxy Access Shareholder Nominees

The Company recently amended its Bylaws to permit a shareholder, or a group of up to 20 shareholders, owning continuously for at least three years shares of NextEra Energy representing an aggregate of at least 3% of the Company’s outstanding shares, to nominate and include in the Company’s proxy materials director nominees constituting up to 20% of the current membership of the Board or two directorships, whichever is greater, provided that the shareholder and nominee satisfy the requirements in the Bylaws. Notice of proxy access director nominees for the 2018 annual meeting of shareholders should be addressed to the Corporate Secretary, NextEra Energy, Inc., P.O. Box 14000, 700 Universe Boulevard, Juno Beach, Florida 33408-0420 and must be received no earlier than October 28, 2017 and no later than the close of business on November 27, 2017. A copy of the Bylaws containing the complete proxy access requirements is available on NextEra Energy’s website atwww.nexteraenergy.com/investors/governance.shtml.

Other Shareholder Nominees

The policy of the Governance & Nominating Committee is to consider properly submitted shareholder nominations of candidates for membership on the Board. The methods used by the Governance & Nominating Committee to identify and evaluate director candidates are discussed below underIdentifying and Evaluating Nominees for Directors. In evaluating nominations, the Governance & Nominating Committee seeks to achieve a balance of knowledge, experience and capability and to address the membership criteria set forth below and in Proposal 1 underDirector Qualifications. Any shareholder nominations proposed for consideration by the Governance & Nominating Committee should include the nominee’s name and qualifications for Board membership, and include all information that the Company’s Bylaws require for director nominations, and should be addressed to: Corporate Secretary, NextEra Energy, Inc., P.O. Box 14000, 700 Universe Boulevard, Juno Beach, Florida 33408-0420. A copy of the Bylaws is available on NextEra Energy’s website atwww.nexteraenergy.com/investors/governance.shtml.

A shareholder who wishes to nominate a person for the Governance & Nominating Committee to consider for election as a director must also follow the advance notice requirements of the Bylaws. A shareholder who nominates a director candidate must be a shareholder of record on the date he or she gives the nomination notice to NextEra Energy. The advance notice procedure in the Bylaws requires that a shareholder’s notice must be given in a timely manner and in proper written form to the Corporate Secretary. For nominations at annual meetings to be timely, notice must be delivered in person or by facsimile, or sent by U.S. certified mail and received, at NextEra Energy’s principal executive offices not earlier than the opening of business 120 days and not later than the close of business 90 days prior to the anniversary date of the immediately preceding annual meeting. If the date of the annual meeting is more than 30 days earlier, or 60 days later, than such anniversary date, similar timeliness requirements, based on the date of the meeting, apply. Similar requirements apply in order for shareholder nominations at special meetings at which the Board has determined directors are to be elected to be timely. The notice must comply with the terms of the Bylaws and be accompanied by the materials listed and described in the Bylaws. Forms of the written materials required to make a nomination are available upon written request to the Corporate Secretary.

SeeShareholder Proposals for 2018 Annual Meeting for information about the requirements for submission of shareholder proposals for consideration at the 2018 annual meeting of shareholders.

Director Qualifications

In addition to the qualifications for directors set forth under Proposal 1 on page 9 of this proxy statement, no person will be considered for Board membership who is an employee or director of a business in significant competition with the Company or of a major or potentially-major customer, supplier, contractor, counselor or consultant of the Company, or an executive officer of a business where a Company employee-director serves on such other business’s board.

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Generally, no person who shall have attained the age of 72 years by the date of election shall be eligible for election as a director. However, the Board may, by unanimous action (excluding the affected director), extend a director’s eligibility for one or two additional years, in which event such a director will not be eligible for election as a director if he or she has attained the age of 73 or 74 by the date of election.

Identifying and Evaluating Nominees for Directors

The Governance & Nominating Committee uses a variety of methods for identifying and evaluating nominees for director. The Governance & Nominating Committee periodically assesses the appropriate size of the Board, and whether any vacancies on the Board are expected due to retirement or otherwise. Candidates may come to the attention of the Governance & Nominating Committee through current Board members, professional search firms, shareholders or other persons. Candidates are evaluated at regular or special meetings of the Governance & Nominating Committee, and may be considered at any time during the year. As described above, the Governance & Nominating Committee considers properly submitted shareholder nominations for candidates for the Board. Following verification of the shareholder status of persons proposing candidates, recommendations are aggregated and considered by the Governance & Nominating Committee at a regularly scheduled meeting, which is generally but not exclusively the December or February meeting prior to the distribution of the proxy statement for the Company’s annual meeting. The Governance & Nominating Committee considers all nominee recommendations, including those from shareholders, in the same manner when determining candidates for the Board. If any materials are provided by a shareholder in connection with the nomination of a director candidate, such materials are provided to the Governance & Nominating Committee. The Governance & Nominating Committee also reviews materials provided by professional search firms or other parties. In evaluating nominations, the Governance & Nominating Committee seeks to achieve a diverse balance of knowledge, experience and capability. For additional information about the process for nominating and electing directors, seeProxy Access Shareholder Nominees,OtherShareholder Nominees andDirector Qualifications above and as set forth under Proposal 1, andShareholder Proposals for 2018 Annual Meeting, below.

Communications with the Board

The Board has established procedures by which shareholders and other interested parties may communicate with the Board, any Board committee, the Lead Director or any one or more other directors. Such parties may write to one or more directors, care of the General Counsel, NextEra Energy, Inc., P.O. Box 14000, 700 Universe Boulevard, Juno Beach, Florida 33408-0420, or send an e-mail to:boardofdirectors@nexteraenergy.com. They may also contact any member of the Audit Committee with a concern under the Company’s Code of Business Conduct & Ethics by calling 561-694-4644.

The Board has instructed the General Counsel to assist the Board in reviewing all written communications to the Board, any Board committee or any director as follows:

Complaints or similar communications regarding accounting, internal accounting controls or auditing matters will be handled in accordance with the NextEra Energy, Inc. and Subsidiaries Procedures for Receipt, Retention and Treatment of Complaints and Concerns Regarding Accounting, Internal Accounting Controls or Auditing Matters.

All other legitimate communications related to the duties and responsibilities of the Board or any committee will be promptly forwarded by the General Counsel to the applicable directors, including, as appropriate under the circumstances, to the chairman of the board, the Lead Director and/or the appropriate committee Chair.

All other shareholder, customer, vendor, employee and other complaints, concerns and communications will be handled by management, with Board involvement as advisable with respect to those matters that management reasonably concludes to be significant.

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Communications that are of a personal nature or not related to the duties and responsibilities of the Board, that are unduly hostile, threatening, illegal or similarly inappropriate or unsuitable, that are conclusory or vague in nature, or that are surveys, junk mail, resumes, service or product inquiries or complaints, or business solicitations or advertisements, generally will not be forwarded to any director unless the director otherwise requests or the General Counsel determines otherwise.

Website Disclosures

NextEra Energy will disclose the following matters, if such matters should occur, on its website atwww.nexteraenergy.com/investors/governance.shtml:

any contributions by NextEra Energy to tax exempt organizations of which a director of the Company serves as an executive officer if the contributions exceeded the greater of $1,000,000 or 2% of the organization’s revenues in any single fiscal year during the past three fiscal years; and

any Board determination that service by a member of the Company’s Audit Committee on the audit committees of more than three public companies does not impair the ability of that individual to serve effectively on the Company’s Audit Committee.

Transactions with Related Persons

Related Person Transactions Policy

NextEra Energy maintains a written Related Person Transactions Policy (the “Policy”) that was adopted by the Board in 2007 and amended in February 2012. All Related Person Transactions covered by the Policy are subject to review and approval by the Governance & Nominating Committee. For purposes of the Policy, Related Person Transactions generally are transactions, arrangements or relationships or a series of similar transactions, arrangements or relationships in which the aggregate amount involved exceeds $120,000 in any fiscal year, in which NextEra Energy, including any of its subsidiaries, was, is or will be a participant and in which any Related Person had, has or will have a direct or indirect material interest. An indirect interest includes, among other types of interests, an interest held by or through any entity in which any Related Person is employed or is a partner or principal or serves in a similar position or in which such Related Person has a 10% or greater beneficial ownership interest. Related Persons under the Policy are executive officers, directors and nominees for director of NextEra Energy, any person who is known to NextEra Energy to be the beneficial owner of more than 5% of any class of NextEra Energy’s voting securities (a “Related Shareholder”), and any immediate family member of any of the foregoing persons. The Policy generally is applied in a manner consistent with the requirements of the SEC’s rule relating to the disclosure of transactions with related persons and encompasses review and approval of transactions required to be disclosed by NextEra Energy in accordance with that rule.

In considering whether to approve a Related Person Transaction, the Governance & Nominating Committee (or its Chair, to whom authority has been delegated under certain circumstances) considers such factors as it (or the Chair) deems appropriate, which may include: (1) the Related Person’s relationship to NextEra Energy and interest in the transaction; (2) the material facts of the proposed Related Person Transaction, including the proposed value of such transaction or, in the case of indebtedness, the principal amount that would be involved; (3) the benefits to NextEra Energy and its shareholders of the Related Person Transaction; and (4) an assessment of whether the Related Person Transaction is on terms that are comparable to the terms available to an unrelated third party.

The Policy provides for standing approval for certain categories of Related Person Transactions without the need for specific approval by the Governance & Nominating Committee. These categories include (1) certain transactions with other companies where the Related Person’s only relationship is as an employee (other than an executive officer), partner or principal, if the aggregate amount involved does not exceed the greater of $1,000,000 or 2% of the other company’s gross annual revenues in its most recently

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completed fiscal year, and (2) charitable contributions, grants or endowments by NextEra Energy to charitable organizations, foundations or universities with which a Related Person’s only relationship is as an employee (other than an executive officer) or a trustee, if the aggregate amount involved does not exceed the lesser of $500,000 or 2% of the charitable organization’s total annual receipts in its most recently completed fiscal year.

Related Person Transactions in 2016

In filings with the SEC, BlackRock, Inc. (“BlackRock”), State Street Corporation (“State Street”) and The Vanguard Group (“Vanguard”) reported beneficial ownership of more than 5% of NextEra Energy’s outstanding common stock as of December 31, 2016, and therefore for 2016 each was a Related Shareholder under the Policy described above. The nature and value of services provided by these 5% shareholders and their affiliates are described below:

BlackRock provided investment management services to the NextEra Energy, Inc. Employee Pension Plan and the Employee Retirement Savings Plan as well as money market fund management services to NextEra Energy subsidiaries and received fees of approximately $788,000 for such services in 2016;

State Street provided investment management and administrative services to the Company’s Employee Pension Plan and investment services to the decommissioning trust funds for NextEra Energy’s Florida Power & Light, Duane Arnold, Point Beach and Seabrook nuclear plants and received fees of approximately $856,000 for such services in 2016; and

Vanguard provided investment management and administrative services to the Company’s Employee Retirement Savings Plan and investment services to the decommissioning trust funds for NextEra Energy’s Duane Arnold, Point Beach and Seabrook nuclear plants and received fees of approximately $903,000 for such services in 2016.

NextEra Energy believes that the terms of the services provided described above are comparable to the terms available to an unrelated third party under the same or similar circumstances.

Additionally, during 2016, the adult son of Mr. Rudy E. Schupp was employed by a subsidiary of NextEra Energy as a Project Manager. His total compensation for 2016 was approximately $141,000, and he was eligible for company benefits available to all other employees in a similar position.

Each of the transactions described above were reviewed and approved by the Governance & Nominating Committee in accordance with the Policy.

AUDIT-RELATED MATTERS

Audit Committee Report

The Audit Committee submits the following report for 2016:

In accordance with the written Audit Committee Charter, the Committee assists the Board of Directors (“Board”) in fulfilling its responsibility for oversight of the quality and integrity of the accounting, auditing and financial reporting practices of the Company. During 2016, the Committee met nine times, including four meetings where, among other things, the Committee discussed the interim financial information contained in each quarterly earnings announcement with the chief financial officer, the chief accounting officer and the independent registered public accounting firm prior to public release.

In discharging its oversight responsibility as to the audit process, the Audit Committee has received the written disclosures and the letter from the independent registered public accounting firm required by applicable requirements of the Public Company Accounting Oversight Board (“PCAOB”) regarding the independent registered public accounting firm’s communications with the Audit Committee concerning

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independence and has discussed with the independent registered public accounting firm the independent registered public accounting firm’s independence. The Audit Committee has reviewed any relationships that may affect the objectivity and independence of the independent registered public accounting firm and has satisfied itself as to the firm’s independence. The Committee also discussed with management, the internal auditors and the independent registered public accounting firm the quality and adequacy of the Company’s internal controls and the internal audit function’s organization, responsibilities, resources and staffing. The Committee reviewed with both the independent registered public accounting firm and the internal auditors their audit plans, audit scope and identification of audit risks.

The Committee discussed and reviewed with the independent registered public accounting firm all communications required by generally accepted auditing standards, including those required to be discussed by PCAOB Auditing Standard No. 1301, “Communications with Audit Committees,” and discussed and reviewed the results of the firm’s audit of the financial statements. The Committee also discussed the results of the internal audit examinations.

The Committee reviewed and discussed the audited financial statements of the Company for the year ended December 31, 2016 with management and the independent registered public accounting firm. Management has the responsibility for the preparation of the Company’s financial statements, and the independent registered public accounting firm has the responsibility for the audit of those statements.

Based on the above-mentioned review and discussions with management and the independent registered public accounting firm, the Committee recommended to the Board that the Company’s audited financial statements be included in its Annual Report on Form 10-K for the year ended December 31, 2016, for filing with the Securities and Exchange Commission.

In addition, and in accordance with the Audit Committee Charter, the Committee reviewed and discussed with management and the independent registered public accounting firm management’s internal control report, management’s assessment of the internal control structure and procedures of the Company for financial reporting and the independent registered public accounting firm’s opinion on the effectiveness of the Company’s internal control over financial reporting, all as required to be included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

As specified in the Audit Committee Charter, it is not the duty of the Audit Committee to plan or conduct audits or to determine that the Company’s financial statements are complete and accurate and in accordance with generally accepted accounting principles. These are the responsibilities of the Company’s independent registered public accounting firm and management. In discharging the duties of the Audit Committee, the Committee has relied on (1) management’s representations to us that the financial statements prepared by management have been prepared with integrity and objectivity and in conformity with generally accepted accounting principles and (2) the report of the independent registered public accounting firm with respect to such financial statements.

Respectfully submitted,

William H. Swanson, Chair

Sherry S. Barrat

Naren K. Gursahaney

Toni Jennings

John L. Skolds

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Consideration of Director Nominees

Proxy Access Shareholder Nominees

The Bylaws permit a shareholder, or a group of up to 20 shareholders, owning continuously for at least three years shares of NextEra Energy representing an aggregate of at least 3% of the Company’s outstanding shares to nominate and include in the Company’s proxy materials director nominees for up to 20% of the current membership of the Board or two directorships, whichever is greater, provided that the shareholder(s) and nominee satisfy the requirements in the Bylaws. Notice of proxy access director nominees for the 2021 annual meeting of shareholders should be addressed to the Corporate Secretary, NextEra Energy, Inc., P.O. Box 14000, 700 Universe Boulevard, Juno Beach, Florida 33408-0420 and must be received no earlier than November 3, 2020 and no later than the close of business on December 3, 2020. A copy of the Bylaws containing the complete proxy access requirements is available on NextEra Energy’s website atwww.investor.nexteraenergy.com/corporate-governance.

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Other Shareholder Nominees

The policy of the Governance & Nominating Committee is to consider properly submitted shareholder nominations of candidates for membership on the Board. Shareholder nominations are reviewed in the same manner as candidates identified by or recommended to the Governance & Nominating Committee. Any shareholder nominations proposed for consideration by the Governance & Nominating Committee should include the nominee’s name and qualifications for Board membership, should include all information that the Bylaws require for director nominations and should be addressed to the Corporate Secretary, NextEra Energy, Inc., P.O. Box 14000, 700 Universe Boulevard, Juno Beach, Florida 33408-0420. A copy of the Bylaws is available on NextEra Energy’s website atwww.investor.nexteraenergy.com/corporate-governance. In order for nominations to be timely under the advance notice requirements of the Bylaws for the 2021 annual meeting, they must be received no earlier than January 21, 2021 and no later than February 20, 2021.

Communications with the Board

The Board has established procedures by which shareholders and other interested parties may communicate with the Board, any Board committee, the Lead Director and any one or more of the other directors. Such parties may write to one or more of the directors, care of the General Counsel, NextEra Energy, Inc., P.O. Box 14000, 700 Universe Boulevard, Juno Beach, Florida 33408-0420, or send ane-mail to: boardofdirectors@nexteraenergy.com. They may also contact any member of the Audit Committee with a concern under the Code of Business Conduct & Ethics by calling561-694-4644.

The Board has instructed the General Counsel to assist the Board in reviewing all written communications to the Board, any Board committee or any director as follows:

Complaints or similar communications regarding accounting, internal accounting controls or auditing matters will be handled in accordance with the NextEra Energy, Inc. and Subsidiaries Procedures for Receipt, Retention and Treatment of Complaints and Concerns Regarding Accounting, Internal Accounting Controls or Auditing Matters.

All other legitimate communications related to the duties and responsibilities of the Board or any committee will be promptly forwarded by the General Counsel to the applicable directors, including, as appropriate under the circumstances, to the chairman of the board, the Lead Director and/or the appropriate committee chair.

All other shareholder, customer, vendor, employee and other complaints, concerns and communications will be handled by management with Board involvement as advisable with respect to those matters that management reasonably concludes to be significant.

Communications that are of a personal nature or not related to the duties and responsibilities of the Board, are unduly hostile, threatening, illegal or similarly inappropriate or unsuitable, are conclusory or vague in nature, or are surveys, junk mail, resumes, service or product inquiries or complaints, or business solicitations or advertisements, generally will not be forwarded to any director unless the director otherwise requests or the General Counsel determines otherwise.

Website Disclosures

NextEra Energy will disclose the following matters, if such matters should occur, on its website atwww.investor.nexteraenergy.com/corporate-governance.

any contributions by NextEra Energy to tax exempt organizations of which a director of the Company serves as an executive officer exceeding the greater of $1,000,000 or 2% of the organization’s revenues in any single fiscal year during the past three fiscal years; and

any Board determination that service by a member of the Company’s Audit Committee on the audit committees of more than three public companies does not impair the ability of that individual to serve effectively on the Company’s Audit Committee.

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Transactions with Related Persons

In 2007, the Board adopted a Related Person Transactions Policy (the “Policy”) for the review and approval of Related Person Transactions by the Governance & Nominating Committee. Transactions and series of transactions exceeding $120,000 in any fiscal year involving the Company and in which any Related Person has a direct or indirect material interest are governed by the Policy. Related Persons under the Policy are executive officers, directors and nominees for director of NextEra Energy, any beneficial owner of more than 5% of any class of NextEra Energy’s voting securities and any immediate family member of any of the foregoing persons.

In considering whether to approve a Related Person Transaction, the Governance & Nominating Committee (or its Chair, to whom authority has been delegated under certain circumstances) considers such factors as it (or the Chair) deems appropriate, which may include: (1) the Related Person’s relationship to NextEra Energy and interest in the transaction; (2) the material facts of the proposed Related Person Transaction, including the proposed value of such transaction or, in the case of indebtedness, the principal amount that would be involved; (3) the benefits to NextEra Energy and its shareholders of the Related Person Transaction; and (4) an assessment of whether the Related Person Transaction is on terms that are comparable to the terms that would be available to an unrelated third party.

The Policy provides for standing approval for certain categories of Related Person Transactions without the need for specific approval by the Governance & Nominating Committee. These categories include (1) certain transactions with other companies where the Related Person’s only relationship is as an employee (other than an executive officer), partner or principal, if the aggregate amount involved does not exceed the greater of $1,000,000 or 2% of the other company’s gross annual revenues in its most recently-completed fiscal year and (2) charitable contributions, grants or endowments by NextEra Energy to charitable organizations, foundations or universities with which a Related Person’s only relationship is as an employee (other than an executive officer) or a trustee, if the aggregate amount involved does not exceed the lesser of $500,000 or 2% of the charitable organization’s total annual receipts in its most recently completed fiscal year.

During 2019, three providers of investment management and administrative services to the Company were also beneficial owners of more than 5% of NextEra Energy’s outstanding common stock. The nature and value of services provided by these 5% shareholders and their affiliates are described below:

BlackRock provided investment management services to the NextEra Energy, Inc. Employee Pension Plan and the Employee Retirement Savings Plan, money market fund management services to NextEra Energy subsidiaries and investment services to the decommissioning trust funds for the Duane Arnold and Point Beach nuclear plants; it received fees of approximately $621,200 for such services in 2019;

State Street provided investment management and administrative services to the Company’s Employee Pension Plan and Employee Retirement Savings Plan and investment services to the decommissioning trust funds for Port St. Lucie, Turkey Point, Duane Arnold, Point Beach and Seabrook nuclear plants; it received fees of approximately $1,019,000 for such services in 2019; and

Vanguard provided investment management and administrative services to the Company’s Employee Retirement Savings Plan and received fees of approximately $1,280,000 for such services in 2019.

NextEra Energy believes that the terms of the services described above are comparable to the terms that would be available to an unrelated third party under the same or similar circumstances.

During 2019, the adult son of Mr. Rudy E. Schupp was employed by a subsidiary of NextEra Energy as a Project Director. His total compensation for 2019 was approximately $190,000, and he was eligible for company benefits available to all other employees in a similar position.

During 2019, a NextEra Energy subsidiary purchased approximately $6.5 million of electrical transformers and related equipment, through transactions determined by competitive bids, from a manufacturer in which Mr. Gursahaney’ssister-in-law is an owner and in which Mr. Gursahaney has no interest of any nature.

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Audit-Related Matters

Audit Committee Report

The Audit Committee submits the following report for 2019:

In accordance with the written Audit Committee Charter, the Audit Committee assists the Board of Directors (“Board”) in fulfilling its responsibility for oversight of the quality and integrity of the accounting, auditing and financial reporting practices of the Company. During 2019, the Audit Committee met eight times, including four meetings where, among other things, the Audit Committee discussed the interim financial information contained in each quarterly earnings announcement with the chief financial officer, the chief accounting officer and the independent registered public accounting firm prior to public release.

In discharging its oversight responsibility as to the audit process, the Audit Committee has received the written disclosures and the letter from the independent registered public accounting firm required by applicable requirements of the Public Company Accounting Oversight Board (“PCAOB”) regarding the independent registered public accounting firm’s communications with the Audit Committee concerning independence and has discussed with the independent registered public accounting firm the firm’s independence. The Audit Committee has reviewed any relationships that may affect the objectivity and independence of the independent registered public accounting firm and has satisfied itself as to the firm’s independence. The Audit Committee also discussed with management, the internal auditors and the independent registered public accounting firm the quality and adequacy of the Company’s internal controls and the internal audit function’s organization, responsibilities, resources and staffing. The Audit Committee reviewed with both the independent registered public accounting firm and the internal auditors their audit plans, audit scope and identification of audit risks.

The Audit Committee discussed and reviewed with the independent registered public accounting firm all communications required by generally accepted auditing standards, including those required to be discussed by PCAOB Auditing Standard No. 1301, “Communications with Audit Committees,” and discussed and reviewed the results of the firm’s audit of the financial statements. The Audit Committee also discussed the results of the internal audit examinations.

The Audit Committee reviewed and discussed the audited financial statements of the Company for the year ended December 31, 2019 with management and the independent registered public accounting firm. Management has the responsibility for the preparation of the Company’s financial statements and the independent registered public accounting firm has the responsibility for the audit of those statements.

Based on the above-mentioned review and discussions with management and the independent registered public accounting firm, the Audit Committee recommended to the Board that the Company’s audited financial statements be included in its Annual Report on Form10-K for the year ended December 31, 2019, for filing with the Securities and Exchange Commission.

In addition, and in accordance with the Audit Committee Charter, the Audit Committee reviewed and discussed with management and the independent registered public accounting firm management’s internal control report, management’s assessment of the internal control structure and procedures of the Company for financial reporting and the independent registered public accounting firm’s opinion on the effectiveness of the Company’s internal control over financial reporting, all as required to be included in the Company’s Annual Report on Form10-K for the year ended December 31, 2019.

As specified in the Audit Committee Charter, it is not the duty of the Audit Committee to plan or conduct audits or to determine that the Company’s financial statements are complete and accurate and in accordance with generally accepted accounting principles. These are the responsibilities of the Company’s independent registered public accounting firm and management. In discharging its duties, the Audit Committee has relied on (1) management’s representations to us that the financial statements prepared by

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management have been prepared with integrity and objectivity and in conformity with generally accepted accounting principles and (2) the report of the independent registered public accounting firm with respect to such financial statements.

Respectfully submitted,

William H. Swanson, Chair

Kenneth B. Dunn

Naren K. Gursahaney

Toni Jennings

John L. Skolds

Darryl L. Wilson

Fees Paid to Deloitte & Touche

The following table presents fees billed for professional services rendered by Deloitte & Touche, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates, for the fiscal years ended December 31, 2019 and 2018.

   
   

2019

 

  

2018

 

 
   

 

Audit Fees(1)

 

 $

 

6,553,000

 

 

 

 $

 

6,492,000

 

 

 

   

 

Audit-Related Fees(2)

 

  

 

4,337,000

 

 

 

  

 

2,638,000

 

 

 

   

 

Tax Fees(3)

 

  

 

2,943,000

 

 

 

  

 

433,000

 

 

 

   

 

All Other Fees(4)

 

  

 

97,000

 

 

 

  

 

25,000

 

 

 

   

 

Total Fees

 

 $

 

13,930,000

 

 

 

 $

 

9,588,000

 

 

 

(1)

Audit Fees consist of fees billed for professional services rendered by Deloitte & Touche,for the member firmsaudit of Deloitte Touche Tohmatsu,NextEra Energy’s and their respective affiliates,FPL’s annual consolidated financial statements for the fiscal years ended December 31, 2016year, the reviews of the financial statements included in NextEra Energy’s and 2015.FPL’s Quarterly Reports on Form10-Q filed during the fiscal year and the audit of the effectiveness of internal control over financial reporting, comfort letters and consents.

 

   2016  2015 

Audit Fees(1)

 $6,556,000  $6,595,000 

Audit-Related Fees(2)

  7,715,000   7,399,000 

Tax Fees(3)

  206,000   321,000 

All Other Fees(4)

  31,000   38,000 

Total Fees(5)

 $14,508,000  $14,353,000 
(2)

Audit-Related Fees consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of NextEra Energy’s and FPL’s consolidated financial statements and are not reported under “Audit Fees.” These fees primarily related to audits of subsidiary financial statements, consultations on transactions, and attestation services.

(1)

Audit Fees consist of fees billed for professional services rendered for the audit of NextEra Energy’s and FPL’s annual consolidated financial statements for the fiscal year, the reviews of the financial statements included in NextEra Energy’s and FPL’s Quarterly Reports on Form 10-Q filed during the fiscal year and the audit of the effectiveness of internal control over financial reporting, comfort letters, consents and other services related to SEC matters, services in connection with annual and semi-annual filings of NextEra Energy’s financial statements with the Japanese Ministry of Finance and reviews of supplemental schedules.

(3)

(2)

Audit-Related Fees consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of NextEra Energy’s and FPL’s consolidated financial statements and are not reported under “Audit Fees.” These fees primarily related to audits of subsidiary financial statements, consultations on transactions, attestation services and examinations related to applications for government grants.

(3)

Tax Fees consist of fees billed for professional services rendered for tax compliance and tax advice and planning. In 2016 and 2015, approximately $134,000 and $251,000, respectively, wasTax Fees consist of fees billed for professional services rendered for tax compliance and tax advice and planning. In 2019 and 2018, approximately $2,727,000 and $73,000, respectively, were paid related to tax compliance services. In 2019, these fees primarily related to research and development tax credit compliance services. All other tax fees in 2019 and 2018 related to tax advice and planning services. All other tax fees in 2016 and 2015 related to tax compliance services.

 

(4)

All Other Fees consist of fees for products and services other than the services reported under the other named categories. In 2016 and 2015, these fees related to training.

(5)

Total Fees also include amounts billed for professional services rendered to NextEra Energy Partners, LP., the Company’s publicly traded subsidiary.

Policy on Audit Committee Pre-Approval of Audit and Non-Audit Services of Independent Registered Public Accounting Firm

In accordance with the requirements of Sarbanes-Oxley, the Audit Committee Charter and the Audit Committee’s pre-approval policy for services provided by the independent registered public accounting firm, all services performed by Deloitte & Touche are approved in advance by the Audit Committee. Audit and audit-related services specifically identified in an appendix to the pre-approval policy for which the fee is expected to be $250,000 or less are pre-approved by the Audit Committee each year. This pre-approval allows management to obtain the specified audit and audit-related services on an as-needed basis during the year, provided any such services are reviewed with the Audit Committee at its next regularly scheduled meeting. Any audit or audit-related service for which the fee is expected to exceed $250,000, or that involves a service not listed on the pre-approval list, must be specifically approved by the Audit Committee prior to commencement of such service. In addition, the Audit Committee approves all services other than auditthe services reported under the other named categories. In 2019, these fees related to litigation services related to fact testimony regarding the eligible cost basis used for federal income tax purposes and audit-related services performed by Deloitte & Touche in advance of the commencement of such work. The Audit Committee has delegatedtraining. In 2018, these fees related to the Chair of the Audit Committee the right to approve audit, audit-related, tax and other services, within certain limitations, between meetings of the Audit Committee, provided any such decision is presented to the Audit Committee at its next regularly scheduled meeting. At each Audit Committee meeting (other than meetings held solely to review earnings materials), the Audit Committee reviews a schedule of services for which Deloitte & Touche has been engaged since the prior Audit Committee meeting under existing pre-approvals and the estimated fees for those services. In 2016 and 2015, no services provided to NextEra Energy or FPL by Deloitte & Touche were approved by the Audit Committee after services were rendered pursuant to Rule 2-01(c)(7)(i)(C) of the SEC’s Regulation S-X (which provides a waiver of the otherwise applicable pre-approval requirement under certain conditions).training.

The Audit Committee has determined that the non-audit services provided by Deloitte & Touche during 2016 and 2015

Policy on Audit CommitteePre-Approval of Audit andNon-Audit Services of Independent Registered Public Accounting Firm

In accordance with the requirements of Sarbanes-Oxley, the Audit Committee Charter and the Audit Committee’spre-approval policy for services provided by the independent registered public accounting firm, all services performed by Deloitte & Touche are approved in advance by the Audit Committee. Audit and audit-related services specifically identified in an appendix to thepre-approval policy for which the fee is expected to be $250,000 or less arepre-approved by the Audit Committee each year. Thispre-approval allows management to obtain the specified audit and audit-related services on anas-needed basis during

35


the year, provided any such services are reviewed with the Audit Committee at its next regularly scheduled meeting. Any audit or audit-related service for which the fee is expected to exceed $250,000, or that involves a service not listed on thepre-approval list, must be specifically approved by the Audit Committee prior to commencement of such service. In addition, the Audit Committee approves all services other than audit and audit-related services performed by Deloitte & Touche in advance of the commencement of such work. The Audit Committee has delegated to the Chair of the Audit Committee the right to approve audit, audit-related, tax and other services, within certain limitations, between meetings of the Audit Committee, provided any such decision is presented to the Audit Committee at its next regularly scheduled meeting. At each Audit Committee meeting (other than meetings held solely to review earnings materials), the Audit Committee reviews a schedule of services and the estimated fees for those services for which Deloitte & Touche has been engaged since the prior Audit Committee meeting under existingpre-approvals. In 2019 and 2018, no services provided to NextEra Energy or FPL by Deloitte & Touche were approved by the Audit Committee after services were rendered pursuant to Rule2-01(c)(7)(i)(C) of the SEC’s RegulationS-X (which provides a waiver of the otherwise applicablepre-approval requirement under certain conditions).

The Audit Committee has determined that thenon-audit services provided by Deloitte & Touche during 2019 and 2018 were compatible with maintaining that firm’s independence.

36


Executive Compensation

Compensation Discussion & Analysis

This Compensation Discussion and Analysis explains our 2019 executive compensation program for the NEOs. The executive compensation program for the Company’s NEOs generally applies to the Company’s other executive officers. Please read this discussion and analysis together with the tables and related narrative about executive compensation which follow.

Highlights

Execution on Strategic Imperatives Aligned with Compensation

NextEra Energy has a strongpay for performance philosophy that contributed to robust 2019 results. NextEra Energy achieved Company-record adjusted earnings* of $4.062 billion, adjusted EPS* of $8.37 and a1-year TSR of 43%. NextEra Energy’s 2019 TSR outperformed the TSR of the S&P 500 Utilities Index of 26% and the TSR of the S&P 500 Index of 32% for 2019.

These significant accomplishments came as the Company continued to be a leader among the ten largest U.S. utilities (based on market capitalization) in substantially all financial metrics. Among these largest ten U.S. utilities, NextEra Energy ranked #1 for2-,3-,5-,7- and10-year TSR and #1 for3-,5-,7- and10-year adjusted EPS growth. In 2019, NextEra Energy ranked #1 among U.S. and global utility companies, based on market capitalization.**

Ten Largest U.S. Utilities Based on Market Cap – NextEra ranks:

LOGO

In 2020, NextEra Energy was named by Fortune Magazine as the World’s Most Admired Electric & Gas Utility for the thirteenth time in the last fourteen years. Also in 2020, NextEra Energy was named by the Ethisphere Institute as one of the World’s Most Ethical Companies for the thirteenth time in fourteen years.

 

43


EXECUTIVE COMPENSATION

Compensation Discussion & Analysis

*

This compensation discussion and analysis explains our 2016 executive compensation program for the named executive officers. The executive compensation program for the Company’s NEOs alsomeasure is not a financial measure calculated in accordance with accounting principles generally applies to the Company’s other executive officers. Please read this discussion and analysis together with the tables and related narrative about executive compensation which follow.

EXECUTIVE SUMMARY

2016 Company Performance and CEO Compensation

NextEra Energy has a strongpay for performance philosophy that contributed to very positive 2016 results. NextEra Energy achieved Company-record adjusted earnings* of $2.9 billion, adjusted earnings per share* of $6.19 and a 1-year TSR of 18.4%. NextEra Energy’s 2016 TSR outperformed the S&P 500 Utilities Index of 16.3% and the S&P 500 Index of 12.0% for 2016.

These accomplishments came as the Company continued to be a leader among the 10 largest U.S. utilities in substantially all financial metrics. Among the largest 10 U.S. utilities, NextEra Energy ranked #3 for3-year TSR, #1 for 5-year TSR, #1 for 10-year TSR, #2 for 3-year adjusted earnings per share (“EPS”) growth and #1 for 5-year, 7-year and 10-year adjusted EPS growth. In 2016, NextEra Energy ranked #1 among U.S. and global utility companies, based on market capitalization.**

In 2017, NextEra Energy was named by Fortune Magazine as the World’s Most Admired Electric & Gas Utility for the tenth timeaccepted in the last eleven years. Also in 2017, NextEra Energy was named by the Ethisphere Institute as oneUnited States of the World’s Most Ethical CompaniesAmerica (“GAAP”). See Appendix A to this proxy statement for the tenth time in eleven years.

The returns that NextEra Energy generated for its shareholders were attributable to outstanding 2016 performance by the Company’s two principal operating businesses, FPL and NextEra Energy Resources. Somea reconciliation of the Company’s many operational and financial achievements in 2016 include:

FPL:

achieved best-ever and top-decile performance in minutes of service unavailability per customer and best-ever average number of momentary interruptions per customer;

continued to have the lowest typical residential customer bill in Florida and customer bills that are about 25% below the national average;

delivered best-in-class performance in per-customer operations & maintenance expense and top-decile overall fossil fleet generation availability of 93.4%;

won the JD Power award for highest residential customer satisfaction among large utilities in the South, and ranked 2nd in the nation among large utilities; and

achieved top-decile residential and business customer satisfaction scores.

*

This measure is not a financial measure calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). See Appendix B to this proxy statement for a reconciliation of this thisnon-GAAP financial measure to the most directly comparable GAAP financial measure.

**

Market capitalization is as of December 31, 2016;

**

Market capitalization is as of December 31, 2019; rankings are sourced from FactSet Research Systems Inc.

37


The returns that NextEra Energy generated for its shareholders were attributable to outstanding 2019 performance by the Company’s two principal operating businesses, FPL and NextEra Energy Resources. Some of the Company’s many operational and financial achievements in 2019 include:

 

44


Florida Power & LightNextEra Energy Resources:

Resources

continued market leadershipAchieved best-ever performance in North Americanminutes of service unavailability per customer and best-ever performance in frequency of interruptions and momentaries

Originated 7,647 megawatts of renewable contracts, anall-time record for the Company and the industry

Among the lowest typical residential bills in Florida and customer bills that are nearly 30% below the latest national average

Delivered strong performance in wind generation,development, with 1,364approximately 1,959 megawatts of new wind projects added and 1,145 megawatts of wind repowering projects added to its contracted backlog

Deliveredbest-in-class performance inper-customer operations & maintenance (“O&M”) expense andtop-decile overall fossil fleet generation capacity added, 1,287 megawattsavailability of committed new wind origination and approved 1,597 megawatts, or $1.1 billion, of wind repowering projects;92.2%

deliveredDelivered strong performance in solar development, adding 9813,361 contracted megawatts of solar capacity;

continued successful executiondevelopment and won 18% of market share of 2019 U.S. signed solar power purchase agreements

Ranked 2nd by JD Power in the Company’s gas pipeline project construction program;2019 Electric Utility Residential Customer Satisfaction Study, South Region: Large Segment

Largest player in the U.S. in grid-scale battery storage

Achievedtop-decile business and residential customer satisfaction scores

achieved Achievedtop-decile overall equivalent forced outage rate (“EFOR”) of 1.69%.2.12%

Ultimately, the Company’s financial and operational performance is reflected in the increased value of its common stock. As the following table illustrates, TSR over the three-year period from December 31, 2013 to December 31, 2016 was 53%, meaning that an investment of $100 in NextEra Energy common stock on December 31, 2013 was worth $152.61 on December 31, 2016. The CEO’s total direct compensation over the same period was well-aligned with TSR.

LOGO

While our executive compensation program is designed to tie compensation to performance, some performance metrics on which our CEO’s compensation is based are intentionally designed to result in value creation over an extended period of time as opposed to on an annual basis. As a result, CEO compensation may not precisely parallel TSR in any given period. CEO compensation may lag corporate performance in certain years and it may outpace corporate performance in other years. Although absolute alignment between pay and performance in each year may not be achieved and, in any event, may not be appropriate, the Compensation Committee believes that, over time, the Company’s executive compensation program rewards superior performance, provides a disincentive for performance that falls short of expectations and closely aligns executive compensation with shareholder returns.

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FUNDAMENTAL OBJECTIVE OF OUR COMPENSATION PROGRAM

The fundamental objective of our executive compensation program is to motivate and reward actions that the Compensation Committee believes will increase long-term shareholder value. The program is designed to attract, retain, motivate, reward and develop high-quality, high-performing executive leadership whose talent and expertise should enable the Company to create long-term shareholder value that over time is superior to the shareholder value created by our peers.

The table below highlights the fundamental elements of our executive compensation program that the Compensation Committee believes fulfills the core objective of our compensation program.

FUNDAMENTAL ELEMENTS OF OUR COMPENSATION PROGRAM

As discussed in more detail below, NEO direct compensation has three principal elements: base salary, annual incentive awards and equity compensation.

BASE SALARY is a fixed amount of compensation that reflects the responsibilities and day-to-day contributions of NEOs.

ANNUAL INCENTIVE AWARDS are granted for achievement of a detailed set of key financial and operational performance measures, the majority of which are based on industry benchmarks and for which payouts depend on Company performance relative to those benchmarks. The financial measures are the Company’s one-year adjusted earnings per share growth and adjusted return on equity compared to the ten-year average of the companies constituting the S&P 500 Utilities Index. The operational measures are focused on operational performance relative to industry performance.

EQUITY COMPENSATION consists of performance share awards, performance-based restricted stock awards and non-qualified stock option awards:

–  Performance share awards are granted for three-year performance periods to drive intermediate results. Payouts of performance share awards are based on three distinct measurements: (1) three-year TSR relative to companies in the S&P 500 Utilities Index; (2) three-year adjusted earnings per share growth and adjusted return on equity relative to the ten-year average of the companies comprising the S&P 500 Utilities Index; and (3) three-year average performance on core operational performance measures relative to industry peers.

  Performance-based restricted stock awards vest ratably over three years only if the Company achieves a specified annual adjusted earnings goal each year.

  Non-qualified stock option awards are granted subject to a three-year ratable vesting period, have a ten-year term and will deliver value to executives only if the Company’s stock price at exercise exceeds the stock price on the grant date of the award.

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KEY PRACTICES OF OUR COMPENSATION PROGRAM
  

Additionally, effective January 1, 2019, the Company acquired Gulf Power Company, a rate-regulated electric utility serving approximately 470,000 customers in eight counties throughout northwest Florida. Gulf Power earnings contributed an additional $0.37 per share to Company earnings on a GAAP basis in 2019 and $0.41 per share on an adjusted basis. In its first year of ownership of Gulf Power, the Company reduced its O&M costs by approximately 20%.

38


Ultimately, the Company’s financial and operational performance is reflected in the increased value of its common stock. As the following table illustrates, TSR over the three-year period from December 31, 2016 to December 31, 2019 was 119%, meaning that an investment of $100 in NextEra Energy common stock on December 31, 2016 was worth $219.15 on December 31, 2019. The CEO’s total direct compensation over the same period was well-aligned with TSR.

LOGO

Our executive compensation program is designed to tie compensation to performance, with some performance metrics on which our CEO’s compensation is based designed to result in value creation over an extended period of time and others on an annual basis. As a result, CEO compensation may not precisely parallel TSR in any given period. CEO compensation may lag corporate performance in certain years and it may outpace corporate performance in other years. Although absolute alignment between pay and performance in each year may not be achieved and, in any event, may not be appropriate, the Compensation Committee believes that, over time, the Company’s executive compensation program rewards superior performance, provides a disincentive for performance that falls short of expectations and closely aligns executive compensation with shareholder returns.

39


Compensation Elements Designed to Align with Our Strategy

Our executive compensation program is designed to attract, retain, motivate, reward and develop high-quality, high-performing executive leadership whose talent and expertise enable the Company to create long-term and superior shareholder value relative to our peers.

As discussed in more detail below, NEO direct compensation has three principal elements: base salary, annual incentive awards and equity compensation.

LOGO

The Compensation Committee believes these core elements fulfill the fundamental objective of our compensation program to create superior shareholder value. As described below, our compensation program comprises several key practices that are designed to align executive and shareholder interests.

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Key Practices of Our Compensation Program Align Executive and Shareholder Interests

WE SET TARGET TOTAL DIRECT COMPENSATION OPPORTUNITY AND PAY MIX TO SUPPORT THE GOALS OF SHAREHOLDER VALUE CREATION AND EXECUTIVE RETENTION—Each NEO’s 2016 target total direct compensationopportunity

We set target total direct compensation opportunity and pay mix to support the goals of shareholder value creation and executive retention

  Each NEO’s 2019 target total direct compensation opportunity was set with reference to two groups of benchmarked companies, drawn from energy services and general industry, representing the broad, competitive labor market from which we recruit executive talent and with which we must compete for that talent. This target opportunity was then allocated over several forms of compensation, the mix of which was designed to support the goals of shareholder value creation and executive retention.

 

WE LINK NEO FINANCIAL SUCCESS TO SHAREHOLDER VALUE CREATION—All NEOs’ 2016

We link NEO financial success to shareholder value creation

  All NEOs’ 2019 compensation included a significant element of equity compensation, supported by robust stock ownership guidelines, performance hurdles, vesting schedules and the potential for clawback.

 

WE VALUE, AND REVIEW, PERFORMANCE RELATIVE TO THE PERFORMANCE OF OUR COMPETITORS AND PEERS WHENEVER POSSIBLE, RATHER THAN RELATIVE TO ARBITRARY GOALS—Our basic principle underlying the linkage between performance (both financial and operational) and executive compensation is that performance superior to our competition and peers will result in above-target compensation, while performance that is not superior to our competition and peers will result in below-target compensation. Wherever comparable industry information was available, our 2016 financial and operational

We value, and review, performance relative to the performance of our competitors and peers whenever possible, rather than relative to arbitrary goals were set, and our 2016 performance against those goals was measured,relative to industry performance.

OUR PRINCIPAL FINANCIAL METRICS IN 2016 WERE ADJUSTED RETURN ON EQUITY AND ADJUSTED EARNINGS PER SHARE GROWTH—The principal financial metrics on which our 2016 results were benchmarked against industry performance were adjusted return on equity and adjusted earnings per share growth, both measured in comparison to the actual results of the other members of the S&P 500 Utilities Index over the 10-year period January 1, 2006 through December 31, 2016.* The Compensation Committee believes that these financial metrics are “enduring standards,” because they are objective, require the Company to demonstrate superior performance, are aligned with how shareholder value is created and encourage management to include stretch goals as part of the annual budget setting process. The Committee believes that a 10-year period is appropriate for comparison due to the historically longer-term economic cycles inherent in the power industry and the sporadic volatility that the power industry experiences from time to time. The Committee accordingly believes that a 10-year period reduces the likelihood that, in any given year, inappropriate metrics will be established as a result of short-term industry anomalies.

 

 

*

Estimated for 2016 using actual results for the first three quarters and analysts’ estimates for the fourth quarter.

  Our basic principle underlying the linkage between performance (both financial and operational) and executive compensation is that performance superior to our competition and peers will result in above-target compensation, while performance that is inferior to our competition and peers will result in below-target compensation. Wherever comparable industry information was available, our 2019 financial and operational performance goals were set, and our 2019 performance against those goals was measured, relative to industry performance.

Our principal financial metrics in 2019 were adjusted ROE and adjusted EPS growth

 

47

  Adjusted ROE and adjusted EPS growth were used to benchmark our 2019 results against industry performance, measured in comparison to the actual results of companies in the S&P 500 Utilities Index over a ten-year period. The Compensation Committee believes these financial metrics are “enduring standards,” because they are objective, require superior performance, are aligned with creating shareholder value and encourage stretch goals. The Compensation Committee believes a ten-year period is appropriate due to the historically longer-term economic cycles inherent in the power industry and the sporadic volatility that the power industry experiences from time-to-time. The Compensation Committee accordingly believes that a ten-year period reduces the likelihood that, in any given year, inappropriate metrics will be established as a result of short-term industry anomalies.

Responding to Our Shareholders – 2019Say-On-Pay Vote and Shareholder Outreach

In 2019, we held our ninth annual advisory vote to approve NEO compensation, commonly known as“say-on-pay.” In 2019, we sought to engage with shareholders who, in the aggregate, represented a significant percentage of our outstanding shares, and held discussions with those who agreed to our request for engagement. Our engagement efforts are discussed in more detail on pages 4 and 22.

Shareholders were generally supportive of our executive compensation program and of our overall corporate governance practices. Prior to making determinations about 2020 NEO total compensation opportunities, the Compensation Committee reviewed the results of the 2019say-on-pay vote, noting that 93.6% of those voting had voted “FOR” the Company’s compensation of its NEOs. The Committee considered this vote to be supportive of the Company’s executive compensation program.

41


Our Commitment to Best Practices

What We DoWhat We Do Not Do
LOGO

Tie pay to performance and a substantial majority of NEO pay is not guaranteed; 92% of the CEO’s actual direct 2019 compensation was performance-based

LOGO

No CEO employment agreement

LOGO

Use industry benchmarks when setting operational goals and when reviewing actual performance and generally target top-decile or top-quartile performance as compared to our industry on operational measures where benchmark data is available rather than performance against arbitrary goals

LOGO

No taxgross-ups of NEO perquisites

LOGO

Mitigate undue risk, including using a clawback policy, stock ownership and retention requirements and multiple performance metrics. The Compensation Committee performs a comprehensive risk assessment of incentive compensation plans each year

LOGO

No excise taxgross-up provisions in change in control agreements entered into since 2009

LOGO

Have robust stock ownership guidelines which all NEOs exceed

LOGO

No repricing of underwater stock options

LOGO

Require executive officers to hold performance-based restricted stock for two years after vesting

LOGO

No share recycling under equity compensation plan

LOGO

Have a minimum full vesting period for stock options and performance-based restricted stock, generally three years

LOGO

No hedging of company securities by NEOs or directors permitted under securities trading policy

LOGO

Utilize an independent compensation consultant

LOGO

No pledging of company securities

LOGO

Engage in shareholder outreach and regularly assess the executive compensation program against shareholder input, emerging trends and other factors

LOGO

No guaranteed annual or multi-year bonuses

LOGO

NEOs are required to enter into Rule10b5-1 plans with minimum waiting periods to transact trades in company securities

 
WHAT WE DO
   

TIE PAY TO PERFORMANCE—A substantial majority of NEO pay is not guaranteed; 92% of the CEO’s actual direct 2016 compensation was performance-based.

USE INDUSTRY BENCHMARKS WHEN SETTING OPERATIONAL GOALS AND WHEN REVIEWING ACTUAL PERFORMANCE TO DETERMINE PAYOUTS—We generally target top decile or top quartile performance as compared to our industry on operational measures where benchmark data is available. Actual award payouts are driven by performance relative to industry rather than performance against arbitrary goals. Delivered performance superior to our industry will generally result in above-target compensation, while performance that is not superior to our industry will generally result in below-target compensation.

MITIGATE UNDUE RISK—We take steps to mitigate undue risks related to compensation, including using a clawback policy, stock ownership and retention requirements and multiple performance metrics. The Compensation Committee believes that none of the Company’s compensation programs create risks that are reasonably likely to have a material adverse impact on the Company, which the Committee validates through a review of a comprehensive risk assessment of incentive-based compensation plans each year.

ROBUST STOCK OWNERSHIP GUIDELINES—We have robust stock ownership guidelines, which all NEOs exceed.

HOLDING PERIOD ON PERFORMANCE-BASED RESTRICTED STOCK—We require executive officers to hold performance-based restricted stock for 2 years after vesting (net of shares withheld for, or used to pay, taxes)

42


2019 Named Executive Officer Compensation

Named Executive Officers

The table below provides our NEOs during 2019 whose compensation is described in thisCompensation Discussion & Analysis.

 

MINIMUM FULL VESTING PERIOD FOR STOCK OPTIONS AND PERFORMANCE-BASED RESTRICTED STOCK—Stock options and performance-based restricted stock generally are granted with a minimum full vesting period of 3 years.

INDEPENDENT COMPENSATION CONSULTANT—The Compensation Committee benefits from its use of an independent compensation consultant that provides no other services to the Company.

SHAREHOLDER OUTREACH AND ASSESSMENT FOR IMPROVEMENT—We engage in shareholder outreach and regularly assess the executive compensation program against shareholder input, emerging trends and other factors.

NEOs REQUIRED TO ENTER INTO RULE 10b5-1 PLANS WITH MINIMUM WAITING PERIODS TO TRANSACT TRADES IN COMPANY SECURITIES—Company practice requires that NEOs must execute all trades pursuant to trading plans under SEC Rule 10b5-1 with specified minimum waiting periods approved by the General Counsel.

48


  Executive

     Title

  James L. Robo

Chairman, President & CEO of NextEra Energy and Chairman of FPL

  Rebecca J. Kujawa1

Executive Vice President, Finance and CFO of NextEra Energy and FPL

  John W. Ketchum1

President and CEO of NextEra Energy Resources

  Eric E. Silagy

President and CEO of FPL

  Manoochehr K. Nazar2

President, Nuclear Division of NextEra Energy and FPL

  Charles E. Sieving

Executive Vice President and General Counsel of NextEra Energy and Executive Vice President of FPL

  Armando Pimentel, Jr.1

Former President and CEO of NextEra Energy Resources

(1)

Armando Pimentel, Jr. retired from the Company effective March 1, 2019. John W. Ketchum served as Executive Vice President, Finance and Chief Financial Officer until his appointment effective March 1, 2019 to President and CEO of NextEra Energy Resources. Also effective March 1, 2019, Rebecca J. Kujawa was appointed Executive Vice President, Finance and Chief Financial Officer.

(2)

Manoochehr K. Nazar served as President, Nuclear Division and Chief Nuclear Officer until his appointment as President, Nuclear Division effective May 23, 2019. As previously announced, Manoochehr K. Nazar will retire from the Company in April 2020.

Our Target Pay Mix is Majority Performance Based

The Compensation Committee believes that a significant portion of each NEO’s total direct compensation opportunity should be performance-based, reflecting both upside and downside potential. When determining the proportion of total compensation of each compensation element in 2019, the Compensation Committee reviewed current market practices and industry trends, taking into consideration the Company’s preference for emphasizing performance-based compensation andde-emphasizing fixed compensation.

43


In determining performance-based compensation, the Compensation Committee sought to focus the efforts of the NEOs on a balance of short-term, intermediate-term and long-term goals. In addition, the Compensation Committee considered the NEOs’ perception of the relative values of the various elements of compensation and sought input from the CEO and the Compensation Consultant.

LOGO

2019 Base Salary

For 2019, Mr. Robo’s base salary was increased by 3.6% to $1,450,000, primarily reflecting the Company’s superior operating results in 2018, the nature and responsibilities of Mr. Robo’s position, his expertise and performance, the competitiveness of his current pay in relation to his corresponding peer groups and the business judgment of the Compensation Committee.

Other NEOs salaries increased between 5% and 10%, with the exceptions of Mrs. Kujawa who received a 45% increase in connection with her promotion to Executive Vice President, Finance and Chief Financial Officer and Mr. Ketchum who received a 20% increase in connection with his promotion to President, NextEra Energy Resources. Mr. Silagy’s base salary in 2019 of $1,154,100 represented a 10% increase, Mr. Nazar’s base salary in 2019 of $997,500 represented a 5% increase, Mr. Sieving’s base salary of $1,002,400 represented a 10% increase and Mr. Pimentel’s base salary of $1,074,900 represented a 7% increase. Salary increases were based on the nature and responsibilities of each NEO’s respective position, expertise and performance, the competiveness of each NEO’s current pay in relation to their corresponding peer group and the recommendations of the CEO.

2019 Annual Performance-Based Incentive Compensation

2019 Annual Incentive Plan Description

Annual Incentive Plan goals are established to incentivize superior performance relative to industry peers. A majority of these goals are based on industry benchmarks and payouts under the Annual Incentive Plan are generally based on Company performance in the relevant period.

44


Prior to 2019, the Compensation Committee established financial and operational performance goals under the Annual Incentive Plan in the following categories:

WHAT WE DO NOT DO

NO CEO EMPLOYMENT AGREEMENT

NO TAX GROSS-UPS OF NEO PERQUISITES

NO EXCISE TAX GROSS-UP PROVISIONS IN CHANGE IN CONTROL AGREEMENTS—Since 2009, new or materially amended change in control agreements have not included excise tax gross-up provisions.

NO REPRICING OF UNDERWATER STOCK OPTIONS

NO SHARE RECYCLING UNDER EQUITY COMPENSATION PLAN

NO HEDGING OF COMPANY SECURITIES BY NEOs OR DIRECTORS PERMITTED UNDER SECURITIES TRADING POLICY

NO PLEDGING OF COMPANY SECURITIES—Pledging of NextEra Energy securities as collateral is prohibited.

NO GUARANTEED ANNUAL OR MULTI-YEAR BONUSES

  

2016 SAY-ON-PAY VOTE AND SHAREHOLDER OUTREACH

In 2016, we held our sixth annual advisory vote to approve NEO compensation, commonly known as “say-on-pay.” In 2016, we sought to engage with shareholders who in the aggregate represented a significant percentageType of our outstanding shares, and held discussions with those who agreed to our request for engagement. Those shareholders were generally supportive of our executive compensation program, and of our overall corporate governance practices. Prior to making determinations about 2017 NEO total compensation opportunities, the Compensation Committee reviewed the results of the 2016 say-on-pay vote, noting that 95.0% of those voting had voted “FOR” the Company’s compensation of its NEOs. The Committee considered this vote to be supportive of the Company’s executive compensation program and determined not to make any additional structural changes to the program for 2017.

HOW WE MADE 2016 COMPENSATION DECISIONS

General

The Compensation Committee used its business judgment to set each NEO’s target total direct compensation opportunity for 2016 and each compensation element. The Committee based its determination on its integrated assessment of a series of factors, including competitive alternatives, individual and team contribution and performance, corporate performance, complexity and importance of role and responsibilities, position tenure, leadership and growth potential and the relationship of the NEO’s pay to the pay of NextEra Energy’s other executive officers. See page 36 of this proxy statement for a discussion of the Compensation Committee’s processes. There are no material differences among NEOs with respect to the application of NextEra Energy’s compensation policies or the way in which total compensation opportunity is determined.

2019 Performance Goals

 

49


Resources

The Compensation Committee primarily usedHow We Established and Used the following resources to aid in its determination of the 2016 target total direct compensation opportunity for each NEO.

Market Comparisons/Peer Group

When establishing each NEO’s target total direct compensation opportunity for 2016, the Compensation Committee considered the competitive market for comparable executives and compensation opportunities provided by comparable companies. Competition for executive talent primarily affects the aggregate level of the target total direct compensation opportunity available to the NEOs. The Compensation Committee believes that it is critical to the Company’s long-term performance to offer its executive officers compensation opportunities broadly commensurate with their competitive alternatives. The Company obtained market comparison information for all NEOs from publicly-available peer group information. The Company’s peer group is composed of a set of companies from the energy services industry and a set of companies from general industry. These companies were selected by the Compensation Committee with input from executive officers (including the chief executive officer) and the Compensation Consultant. The Compensation Committee believes that the use of companies both from the energy services industry and from general industry was appropriate because the Company’s executive officers come both from within and from outside the Company’s industry. NEOs were recruited from within and outside the Company’s industry and the Committee believes that their opportunities for alternative employment are not limited to other energy or utility companies.

For 2016, the Compensation Committee conducted a review of the then-existing 2015 peer group based on the following criteria:

Criteria for Energy Services Industry Companies2019 Performance Goals

 

publicly-traded companies with a strong United States domestic presence

classified with a Standard Industrial Classification (“SIC”) code similar to the Company’s SIC code

annual revenue greater than $1 billion

a potential source of executive talent

included in an executive compensation survey database provided by a third party

Criteria for General Industry Companies

publicly-traded companies with a strong United States domestic presence

member of the Fortune 500

considered highly reputable and highly regarded for operational excellence, product/service leadership or customer experience

sustained revenues between 50% and 200% of the Company’s revenues

fewer than 150,000 employees

heavily industrialized, highly regulated or a producer of consumer staples

operate in industries which may be potential sources of executive talent

no unusual executive pay arrangements

included in an executive compensation survey database provided by a third party

contribute to diversity of industry representation in this segment of the peer group

50


All energy services industry companies and general industry companies included in the Company’s 2015 peer group met these criteria and were retained by the Compensation Committee for the 2016 peer group and no additional companies were added to either group. Thus, the executive compensation programs of the following companies were reviewed as market comparators for 2016:

Energy Services IndustryGeneral Industry

American Electric Power Company, Inc.

Air Products and Chemicals, Inc.

Consolidated Edison, Inc.

Alcoa Inc.

Dominion Resources, Inc.

Anadarko Petroleum Corporation

Duke Energy Corporation

CIGNA Corporation

Edison International

Colgate-Palmolive Company

Entergy Corporation

Devon Energy Corporation

Exelon Corporation

E. I. du Pont de Nemours and Company

FirstEnergy Corp.

Eaton Corporation

PG&E Corporation

Emerson Electric Co.

PPL Corporation

Fluor Corporation

Public Service Enterprise Group Incorporated

General Dynamics Corporation

Sempra Energy

Hess Corporation

The Southern Company

Kellogg Company

Xcel Energy Inc.

Murphy Oil Corporation
Principal Financial Group, Inc.
Schlumberger Limited
SunTrust Banks, Inc.
Texas Instruments Incorporated
Union Pacific Corporation
Waste Management, Inc.
Xerox Corporation

Although the Compensation Committee did not target specific total compensation levels relative to industry peers (a so-called “percentile” approach), it generally reviewed peer company data at the 50th percentile for the general industry companies and the 75th percentile for the energy services industry companies.Financial

  The Committee believes these levels were appropriate because:

the Company’s practice is to make a relatively high portion of each NEO’s compensation performance-based as compared to its peers;

the Company’s operations are more complex, more diverse and of a greater size than those of substantially all of its energy services industry peer companies; and

the Company’s 2015 market capitalization and assets were above the 50th percentile of its general industry peer companies and above the 75th percentile of its energy services industry peer companies.

51


Other Resources

What We UseHow We Use It

“Tally sheets” and “walk-away charts”

Provides a check to ensure that the Compensation Committee sees the full value of all elements of the NEOs’ annual compensation, both as opportunity and as actually realized, and sees the actual results of its compensation decisions in the various situations under which employment may terminate

Reviews by the CEO

Prior to the beginning of the year, the Compensation Committee solicits performance reviews of the other NEOs and executive officers from the CEO for use as an additional input to the Committee’s determination of target total direct compensation opportunity and, after the end of the year, whether or not to use Committee discretion to adjust annual incentive compensation amounts determined using the formula discussed below

2016 NEO PAY

Target Pay Mix

NextEra Energy has three fundamental elements of total direct compensation: base salary, annual incentive awards and equity compensation. The Compensation Committee believes that a significant portion of each NEO’s total direct compensation opportunity should be performance-based, reflecting both upside and downside potential. When determining the proportion of total compensation that each compensation element constituted in 2016, the Compensation Committee reviewed current market practices and industry trends, taking into consideration the Company’s preference for emphasizing performance-based compensation and de-emphasizing fixed compensation. In determining performance-based compensation, the Compensation Committee sought to focus the efforts of the NEOs on a balance of short-term, intermediate-term and long-term goals. In addition, the Compensation Committee considered the NEOs’ perception of the relative values of the various elements of compensation and sought input from the CEO and the Compensation Consultant.

52


As illustrated in the following charts, 89% of the CEO’s 2016 target total direct compensation opportunity, and 75% of the other NEOs’ 2016 target total direct compensation opportunities, were performance-based and not guaranteed.

LOGO

2016 Base Salary

CEO: For 2016, Mr. Robo’s base salary was increased by 4%, to $1,300,000 primarily reflecting the Company’s superior operating results in 2015, the nature and responsibilities of Mr. Robo’s position, his expertise and performance, the competitiveness of his current pay in relation to his corresponding peer group and the business judgment of the Compensation Committee.

Other NEOs: Mr. Ketchum’s base salary in 2016 of $575,000 represented a 15% increase, Mr. Nazar’s base salary in 2016 of $874,200 represented a 4% increase, Mr. Pimentel’s base salary in 2016 of $838,100 represented a 6% increase and Mr. Silagy’s base salary in 2016 of $796,100 represented a 10% increase, all of which were based on the nature and responsibilities of their respective positions, their expertise and performance, the competitiveness of each NEO’s current pay in relation to his corresponding peer group and the recommendations of the CEO. Mr. Dewhurst did not receive a salary increase due to his retirement. The Compensation Committee also took into account the effect that base salary increases would have on other components of compensation, including annual incentive pay, long-term incentive plan grants and retirement benefits.

53


2016 Annual Performance-Based Incentive Compensation

Description of the Annual Incentive Plan for 2016

Annual Incentive Plan goals are established to incentivize superior performance relative to industry peers, and a majority of these goalsfinancial metrics are based on industry benchmarks. Payouts under the Annual Incentive Plan are generally based on Company performance in the relevant period enduring standards indicative of sustained performance—adjusted EPS growth and adjusted ROE—as compared to the benchmarks.

Prior tofinancial performance over the beginning of 2016, the Compensation Committee established financial and operational performance goals under the Annual Incentive Plan in the following categories:

Type of 2016 Performance GoalsHow We Established and Used the 2016 Performance Goals

Financial

   The financial metrics are based on enduring standards indicative of sustained performance—adjusted earnings per share growth and adjusted return on equity—as compared to the financial performance over the ten-year period ended on December 31, 2016ten-year period ended on December 31, 2019 of the companies included in the S&P 500 Utilities Index.

 

  Higher ratings indicate corporate financial performance superior to industry median and lower ratings indicate corporate financial performance which lags industry median.

Operational

   Operational goals and payout scales are established in advance of the year using available industry benchmarks insofar as possible.

   If an industry benchmark is not available, the applicable goal generally is set at a level constituting an improvement or a stretch as compared to prior performance.

   As a general principle, the Compensation Committee seeks to set operational performance goals at levels that represent excellent performance, superior to the results of typical companies in our industry, and that require significant effort on the part of the executive team to achieve.

   Performance on certain compliance-related goals is scored as either “met” or “not met,” while performance against other goals is judged on a sliding scale in comparison to top decile, top quartile, median and sub-median performance as compared to the industry.

2016 Financial Performance Matrix

The financial performance matrix approved by the Compensation Committee for 2016, which is illustrated below, compares the Company’s 2016 adjusted earnings per share growth and adjusted return on equity to the average of the actual annual earnings per share growth and return on equity of the companies included

54


in the S&P 500 Utilities Index during the 10-year period from January 1, 2007 to December 31, 2016 (estimated for 2016 using actual results for the first three quarters and analysts’ estimates for the fourth quarter).*

The Compensation Committee believes that these financial metrics are “enduring standards” because they are objective, require the Company to demonstrate improvement, are aligned with how shareholder value is created and encourage management to include stretch goals as part of the annual budget setting process. The financial performance matrix is designed to provide relatively greater rewards if the Company outperforms others in its industry on the indexed measures and relatively lower rewards if it does not. The Compensation Committee based the matrix on adjusted earnings because it believes that adjusted earnings provide a more meaningful representation of the Company’s fundamental earning power than net income calculated in accordance with GAAP. Therefore, the Committee believes that using adjusted earnings better aligns the NEOs’ motivations with the Company’s strategy and with shareholders’ long-term interests. In addition, the Committee believes that the use of adjusted earnings for this purpose is consistent with the way in which the Company communicates its earnings to analysts and investors.

The numbers in the following matrix set forth the range of possible ratings for corporate financial performance. A rating of “1” indicates overall corporate financial performance at the industry median, while higher ratings indicate corporate financial performance superior to the industry median and lower ratings indicate corporate financial performance which lags the industry median.

It is important to recognize that the adjusted return on equity and adjusted earnings per share growth amounts set forth in the illustration below are not generated arbitrarily by the Company, but reflect actual industry performance on these measures for the 10-year period ended December 31, 2016, and that the Company’s executive compensation is based, with respect to adjusted return on equity and adjusted earnings per share growth, on the performance delivered by the Company relative to industry performance.

LOGO

*

Adjusted earnings per share and adjusted return on equity are not financial measurements calculated in accordance with GAAP. Adjusted earnings, as defined by NextEra Energy for purposes of the Annual Incentive Plan, are the Company’s consolidated net income, as reported in the audited annual financial statements as determined in accordance with GAAP, excluding the effects of: (1) changes in the mark-to-market value of non-qualifying hedges; (2) other than temporary impairments on investments; (3) extraordinary items; (4) non-recurring charges or gains (e.g., restructuring charges and material litigation losses); (5) discontinued operations; (6) regulatory and/or legislative changes and/or changes in accounting principles; (7) labor union disruptions; and (8) acts of God such as hurricanes, which is used, among other reasons, to provide industry comparability. Adjusted return on equity, as defined by NextEra Energy, is equal to the Company’s adjusted earnings divided by average common shareholders’ equity, adjusted to provide industry comparability, expressed as a percentage. Adjusted earnings per share, as defined by NextEra Energy, are equal to the Company’s adjusted earnings divided by weighted average diluted shares outstanding.

Operational

55


2016 Operational Goals

The Compensation Committee’s philosophy with respect to both setting and paying out incentives based on operational goals is that the goals set and the actual award payouts are driven by Company performance relative to industry benchmarks, rather than performance against arbitrary goals.  Operational goals and payout scales are established based onin advance of the year using available industry benchmarks and Companyinsofar as possible.

  If an industry benchmark is not available, the applicable goal generally is set at a level representing an improvement or a stretch as compared to prior performance.

  As a general principle, the Compensation Committee seeks to set operational performance when meaningful benchmarks are available. As noted previously, deliveredgoals at levels that represent excellent performance, superior to the results of typical companies in our industry, will generally result in above-target compensation, while performanceand that is not superiorrequire significant effort on the part of the executive team to our industry will generally result in below-target compensation.

In that context, FPL’s typical performance goals are generally equal to or better than the top quartile performers in its industry and NextEra Energy Resources targets earnings growth and profitability goals that are well above utility industry norms (in both cases based on internal reviews of publicly-available information and information provided by consultants and industry associations). The following tables set forth, for 2016, the operational performance goals and the actual performance achieved against those goals.

Florida Power & Light Company:

Indicator Goal Actual Weight 

Operations & maintenance costs (plan-adjusted)(1)

 $1,398 million(1) $1,376 million(1)  31

Capital expenditures (plan-adjusted)(1)

 $4,412 million(1) $4,050 million(1) 

Fossil generation availability(2)

 top decile performance exceeded top decile performance  21

Nuclear industry composite performance index(3)

 aggressive goal of top quartile performance missed goal of top quartile performance 

Service reliability—service unavailability (minutes)

 top decile (63.2 minutes) 

Best ever and exceeded top decile performance

(61.6 minutes)

 

Service reliability—average frequency of customer interruptions

 0.83 interruptions per customer per year (average) 0.79—best ever and exceeded top quartile performance 

Service reliability—average number of momentary interruptions per customer

 10.8 momentary interruptions per customer per year 8.3—best-ever performance 

Employee safety—OSHA recordables(4)/200,000 hours

 top decile 0.60 0.84—missed goal  23

Significant environmental violations

 0 0 

Customer satisfaction—residential value surveys

 aggressive goal beat goal 

Customer satisfaction—business value surveys

 aggressive goal beat goal 

Performance under FERC and NERC reliability standards(5)

 no significant violations no significant violations 

Successful completion of the rate case

 fair outcome for customers and shareholders fair outcome for customers and shareholders  25
achieve.

 

56


NextEra Energy Resources:

Indicator Goal Actual Weight 

Earnings (plan-adjusted)(1)

 $1,114 million(1) $1,090 million(1)  46

Return on equity

 12.0% 12.9% 

Meet budgeted cost goals

 $1,740 million $1,712 million 

NEP EBITDA

 $670 beat goal 

NEP Cash Available for Distribution

 $230 beat goal 

Employee safety—OSHA recordables(4)/200,000 hours

 0.59 0.46—exceeded top decile performance  23

Significant environmental violations

 0 0 

Nuclear industry composite performance index(3)

 aggressive goal beat goal—exceeded top decile performance 

Equivalent forced outage rate(6)

 top decile performance beat goal—exceeded top decile 

Hedged budgeted gross margin for 2017

 ³85% 98.9% 

Performance under FERC and NERC reliability standards(5)

 no significant violations no significant violations 

Execute on schedule and on budget approved North American wind projects

 1,214 MW beat goal  31

Execute on schedule and on budget approved North American solar projects

 1,023 MW missed goal 

New development or acquisition opportunities in wind, solar, gas infrastructure, or transmission

 aggressive goal beat goal 

Maintain construction of Sabal Trail, Mountain Valley Pipeline (MVP) and Florida Southeast Connection (FSEC) on schedule and on budget

 on schedule and on budget goal largely met 

Pre-tax income contribution from all asset optimization, marketing and trading activities, full requirements and retail

 aggressive goal beat goal 

(1)

Certain of the financial performance indicators used in the Annual Incentive Plan are calculated in a manner consistent with NextEra Energy’s planning and budgeting process and how management reviews its performance relative to that plan, and are not, or do not relate directly to, financial measures calculated in accordance with GAAP. For information about the Company’s results of operations for 2016, as presented in accordance with GAAP, investors should review the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 and should not rely on any adjusted amounts or non-GAAP financial measures set forth above. The following explains how the plan-adjusted amounts are calculated from NextEra Energy’s audited consolidated financial statements: (a) FPL operations & maintenance costs (plan-adjusted) is a measure that includes most but not all operations & maintenance expenses and includes certain expenses not classified as operations & maintenance expenses under GAAP, but reported for state regulatory purposes as operations & maintenance expenses; (b) FPL capital expenditures (plan-adjusted) are presented on an accrual basis, and exclude nuclear fuel payments and certain costs not classified as capital expenditures under GAAP in the consolidated statement of cash flows but reported for state regulatory purposes as capital expenditures; and (c) NextEra Energy Resources’ earnings (plan-adjusted) exclude (i) the mark-to-market effect of non-qualifying hedges, (ii) other than temporary impairments on investments, (iii) extraordinary items, (iv) non-recurring charges or gains (e.g., restructuring charges and material litigation losses), (v) discontinued operations, (vi) regulatory and/or legislative changes and/or changes in accounting principles, (vii) labor union disruptions and (viii) acts of God such as hurricanes.

(2)

“Fossil generation availability” measures the amount of time during a given period that a power generating unit is available to produce power.

(3)

The “nuclear industry composite performance index” referenced is the Institute of Nuclear Power Operations, or INPO, index. INPO promotes the highest levels of safety and reliability in the operation of commercial nuclear power plants by establishing performance objectives, criteria and guidelines for the nuclear power industry and conducting regular detailed evaluations of all nuclear power plants in North America. The INPO index is an 18-month rolling average of a nuclear plant’s, and a company’s nuclear fleet’s, performance against operating performance measures.

(4)

“OSHA” is the United States Occupational Safety and Health Administration. An OSHA recordable injury is an occupational injury or illness that requires medical treatment more than simple first aid and must be reported under OSHA regulations.

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(5)

“FERC” is the Federal Energy Regulatory Commission and “NERC” is the North American Electric Reliability Corporation.

(6)

The “equivalent forced outage rate” is computed as the hours of unit failure (unplanned outage hours and equivalent unplanned de-rated hours) given as a percentage of the total hours of the availability of an electricity generating unit.

After the end of 2016, the Executive Compensation Review Board (“review board”), whose members were Messrs. Ketchum, Pimentel, Robo and Silagy and the most senior human resources officer, assessed: (1) whether the operational  Performance on certain compliance-related goals is scored as either “met” or “not met,” while performance against other goals had been achieved, exceeded or missed and,is judged on a sliding scale in comparison to the extent exceeded or missed, by what margin such goals had been exceeded or missed (as set forth in the tables above); (2) the degree of difficulty of achieving each goal; and (3) the Company’s performance with respect to each goal as compared to the pre-established payout scale based on top decile, top quartile,top-decile, top-quartile, median andsub-median performance on the same measure (industry-based where benchmark data was available), and arrived at an aggregate determination for the Company’s 2016 performance as compared to the goals. This assessment determined that the Company had achieved superiorindustry.

2019 Financial Performance Matrix

The financial performance matrix approved by the Compensation Committee for 2019, which is illustrated below, compares the Company’s 2019 adjusted EPS growth and adjusted ROE to the average of the actual annual EPS growth and ROE of the companies included in the S&P 500 Utilities Index during theten-year period from January 1, 2010 to December 31, 2019 (estimated for 2019 using actual results for the first three quarters and analysts’ estimates for the fourth quarter).*

The Compensation Committee believes that these financial metrics are “enduring standards,” because they are objective, require the Company to demonstrate improvement, are aligned with how shareholder value is created and encourage management to include stretch goals as part of the annual budget-setting process. The financial performance matrix is designed to provide relatively greater rewards if the Company

45


outperforms others in its industry on the indexed measures and relatively lower rewards if it does not. The Compensation Committee based the matrix on adjusted earnings because it believes that adjusted earnings provide a more meaningful representation of the Company’s fundamental earning power than net income calculated in accordance with GAAP. Therefore, the Compensation Committee believes that using adjusted earnings better aligns the NEOs’ motivations with the Company’s strategy and with shareholders’ long-term interests. In addition, the Compensation Committee believes that the use of adjusted earnings for this purpose is consistent with the way in which the Company communicates its earnings to analysts and investors.

The numbers in the following matrix set forth the range of possible ratings for corporate financial performance. A rating of “1” indicates overall corporate financial performance at the industry median, while higher ratings indicate corporate financial performance superior to the industry median, and lower ratings indicate corporate financial performance which lags the industry median.

It is important to recognize that the adjusted ROE and adjusted EPS growth amounts set forth in the illustration below are not generated arbitrarily by the Company, but reflect actual industry performance on these measures for theten-year period ended December 31, 2019, and that the Company’s executive compensation is based, with respect to adjusted ROE and adjusted EPS growth, on the performance delivered by the Companyrelative to industry performance.

LOGO

*

Adjusted EPS and adjusted ROE are not financial measurements calculated in 2016. The determinationaccordance with GAAP. Adjusted earnings, as defined by NextEra Energy for purposes of the review board was then presentedAnnual Incentive Plan, are the Company’s consolidated net income, as reported in the audited annual financial statements as determined in accordance with GAAP, excluding the effects of: (1) changes in themark-to-market value ofnon-qualifying hedges; (2) other than temporary impairments on investments; (3) extraordinary items;(4) non-recurring charges or gains (e.g., restructuring charges and material litigation losses); (5) discontinued operations; (6) regulatory and/or legislative changes and/or changes in accounting principles; (7) labor union disruptions; and (8) acts of God such as hurricanes, which is used, among other reasons, to provide industry comparability. Adjusted ROE, as defined by NextEra Energy, is equal to the Compensation Committee, which had ultimate authorityCompany’s adjusted earnings divided by average common shareholders’ equity, adjusted to accept or modify all or any part of the determination. For 2016, the Compensation Committee reviewed and discussed the review board’s recommendations and the conclusions on which they were based, and determined to accept those recommendations.

2016 Annual Incentive Awards for the NEOs

Each NEO’s 2016 annual incentive compensation was determined based onprovide industry comparability, expressed as a rating (“percentage. Adjusted EPS, as defined by NextEra Energy, performance rating”) derived by combiningare equal to the Company’s financial performance as measuredadjusted earnings divided by weighted average diluted shares outstanding.

2019 Operational Goals

The Compensation Committee’s philosophy with respect to operational goals is that the goals be set and the actual award payouts be earned based on quantifiable performance relative to industry benchmarks, rather than performance against arbitrary goals. Operational goals and payout scales are primarily established based on industry benchmarks and Company performance. As noted previously, delivered performance superior to our industry will generally result in above-target compensation, while performance that is inferior to our industry will generally result in below-target compensation.

46


In that context, FPL’s typical performance goals based on industry benchmarks are generally equal to or better than the top-quartile performers in its industry and NextEra Energy Resources targets based on earnings growth and profitability goals are well above utility industry norms (in both cases based on internal reviews of publicly-available information and information provided by consultants and industry associations). The following tables set forth the 2019 operational performance goals and the actual performance achieved against those goals.

Florida Power & Light Company:

    

 

Indicator

 

 

Goal

 

 

Actual

 

 

Weight  

 

 
    

 

Operations & maintenance costs (plan-adjusted)(1)

 

 

 

$1,230 million(1)

 

 

$1,189 million(1)

  45%   

 

Capital expenditures (plan-adjusted)(1)

 

 

 

$5,927 million(1)

 

 

 

$5,848 million(1)

 

    

 

Fossil generation availability(2)

 

 

top decile performance

 

 

exceeded top decile performance

 

  30%   

 

Nuclear industry composite performance index(3)

 

 

aggressive goal

 

 

missed goal

 

 

Service reliability—service unavailability (minutes)

 

 

better than top decile (58.0 minutes)

 

 

 

best ever (54.8 minutes)

 

Service reliability—average frequency of customer interruptions

 

 

 

0.69 interruptions per customer per year (average)

 

 

 

0.65—best ever

 

Service reliability—average number of momentary interruptions per customer

 

 

 

6.3 momentary interruptions per customer per year

 

 

 

5.1—best-ever performance and top decile performance

 

    

 

Employee safety—OSHA recordables(4)/200,000 hours

 

 

 

top decile performance (0.44)

 

 

0.79

  25%   

 

Significant environmental violations

 

 

 

0

 

 

 

0

 

 

Customer satisfaction—residential value surveys

 

 

 

aggressive goal

 

 

 

beat goal

 

 

Customer satisfaction—business value surveys

 

 

 

aggressive goal

 

 

 

beat goal

 

 

Performance under FERC and NERC reliability standards(5)

 

 

 

no significant violations

 

 

partially met goal

47


NextEra Energy Resources:

    

 

Indicator

 

 

 

Goal

 

 

 

Actual

 

 

 

Weight  

 

 
    

 

Earnings (plan-adjusted)(1)

 

 

 

$1,670 million(1)

 

 

 

$1,632 million(1)

 

  52%   

 

Return on equity

 

 

 

14.5%

 

 

 

14.5%

 

 

Meet budgeted cost goals

 

 

 

$1,990 million

 

 

 

$1,967 million

 

 

NEP Cash Available for Distribution

 

 

 

$445 million

 

 

 

beat goal

 

    

 

Employee safety—OSHA recordables(4)/200,000 hours

 

 

 

0.44—top decile

 

 

 

0.21—beat goal and exceeded top decile performance

 

  18%   

 

Significant environmental violations

 

 

 

0

 

 

 

0

 

 

Nuclear industry composite performance index(3)

 

 

 

aggressive goal

 

 

 

beat goal and exceeded top decile performance

 

 

Equivalent forced outage rate(6)

 

 

 

aggressive goal

 

 

 

beat goal and exceeded top decile

 

    

 

Execute on schedule and on budget approved North American wind projects

 

 

 

2,587 MW

 

 

partially met goal

  
30%  
 

 

Execute on schedule and on budget approved North American solar projects

 

 

 

380 MW

 

 

beat goal

 

New development or acquisition opportunities in wind, solar, gas infrastructure or transmission

 

 

 

aggressive goal

 

 

 

beat goal

 

 

Maintain construction of Mountain Valley Pipeline (MVP) on schedule and on budget

 

 

 

on schedule and on budget

 

 

 

missed goal

 

 

Pre-tax income contribution from all asset optimization, marketing and trading activities, full requirements and retail

 

 

 

aggressive goal

 

 

 

beat goal

 

(1)

Certain of the financial performance matrix (weighted 50%)indicators used in the Annual Incentive Plan are calculated in a manner consistent with NextEra Energy’s planning and budgeting process and how management reviews its performance relative to that plan, and are not, or do not relate directly to, financial measures calculated in accordance with GAAP. For information about the Company’s operational performanceresults of operations for 2019, as compared topresented in accordance with GAAP, investors should review the operational performance goals (weighted 50%).

Company’s Annual Report on Form10-K for the year ended December 31, 2019 and should not rely on any adjusted amounts ornon-GAAP financial measures set forth above. The following explains how the plan-adjusted amounts are calculated from NextEra Energy’s audited consolidated financial statements: (a) FPL operations & maintenance costs (plan-adjusted) is a measure that includes most but not all operations & maintenance expenses and includes certain expenses not classified as operations & maintenance expenses under GAAP, but reported for state regulatory purposes as operations & maintenance expenses; (b) FPL capital expenditures (plan-adjusted) are presented on an accrual basis, and exclude nuclear fuel payments and certain costs not classified as capital expenditures under GAAP in the consolidated statement of cash flows but reported for state regulatory purposes as capital expenditures; and (c) NextEra Energy performance rating for 2016, determinedResources’ earnings (plan-adjusted) exclude: (i) themark-to-market effect ofnon-qualifying hedges; (ii) other than temporary impairments on investments; (iii) extraordinary items;(iv) non-recurring charges or gains (e.g., restructuring charges and material litigation losses); (v) discontinued operations; (vi) regulatory and/or legislative changes and/or changes in this manner, was 1.82.accounting principles; (vii) labor union disruptions; and (viii) acts of God such as hurricanes.

(2)

“Fossil generation availability” measures the amount of time during a given period that a power generating unit is available to produce power.

(3)

The NextEra“nuclear industry composite performance index” referenced is the Institute of Nuclear Power Operations, or INPO, index. INPO indicates that it promotes the highest levels of safety and reliability in the operation of commercial nuclear power plants by establishing performance objectives, criteria and guidelines for the nuclear power industry and conducting regular detailed evaluations of all nuclear power plants in North America. The INPO index is an18-month rolling average of a nuclear plant’s, and a company’s nuclear fleet’s, performance against operating performance measures.

(4)

“OSHA” is the United States Occupational Safety and Health Administration. An OSHA recordable injury is an occupational injury or illness that requires medical treatment more than simple first aid and must be reported under OSHA regulations.

(5)

“FERC” is the Federal Energy performance rating may be adjusted for each NEO byRegulatory Commission and “NERC” is the Compensation Committee based on individual performance under circumstances in whichNorth American Electric Reliability Corporation.

(6)

The “equivalent forced outage rate” is computed as the Committee determines that the formulaic calculationhours of unit failure (unplanned outage hours and equivalent unplannedde-rated hours) given as a percentage of the performance rating without adjustment would otherwise result intotal hours of the paymentavailability of an inappropriate incentive. The Compensation Committee generally uses this aspect of the executive compensation program on a conservative basis, as it believes that the formula for calculating the NextEra Energy performance rating ordinarily should result in appropriate incentive payments. The individual performance adjustment, when used, historically has most often ranged between +/- 10%.electricity generating unit.

The Compensation Committee determined the individual performance factors in 2016 based on recommendations from the CEO (for all of the NEOs other than himself). For each NEO other than the CEO, the 2016

48


After the end of 2019, the Executive Compensation Review Board (“review board”), whose members were Messrs. Ketchum, Robo and Silagy and Mrs. Kujawa and the most senior human resources officer, assessed: (1) whether the operational performance goals had been achieved, exceeded or missed and, to the extent exceeded or missed, by what margin such goals had been exceeded or missed (as set forth in the tables above); (2) the degree of difficulty of achieving each goal; and (3) the Company’s performance with respect to each goal as compared to thepre-established payout scale based on top-decile, top-quartile, median andsub-median performance on the same measure (industry-based where benchmark data was available) and arrived at an aggregate determination for the Company’s 2019 performance as compared to the goals. This assessment determined that the Company had achieved superior performance in 2019. The determination of the review board was then presented to the Compensation Committee, which had ultimate authority to accept or modify all or any part of the determination. For 2019, the Compensation Committee reviewed and discussed the review board’s recommendations and the conclusions on which they were based, and determined to accept those recommendations.

2019 Annual Incentive Awards for the NEOs

Each NEO’s 2019 annual incentive compensation was determined based on a rating (“NextEra Energy performance rating”) derived by combining the Company’s financial performance as measured by the financial performance matrix (weighted 50%) and the Company’s operational performance as compared to the operational performance goals (weighted 50%). The NextEra Energy performance rating for 2019, determined in this manner, was 1.79.

The NextEra Energy performance rating may be adjusted for each NEO by the Compensation Committee based on individual performance under circumstances in which the Compensation Committee determines that the formulaic calculation of the performance rating without adjustment would otherwise result in the payment of an inappropriate incentive. The Compensation Committee generally uses this aspect of the executive compensation program on a conservative basis, as it believes that the formula for calculating the NextEra Energy performance rating ordinarily should result in appropriate incentive payments. The individual performance adjustment, when used, historically has most often ranged between ±10%.

The Compensation Committee determined the individual performance factors in 2019 based on recommendations from the CEO (for all of the NEOs other than himself). For each NEO other than the CEO, the 2019 individual performance factor was based primarily upon the Company’s exceptional performance as described in theExecutive Summary, above, as well as (for each NEO other than the CEO) the NEO’s performance relative to a set of objectives agreed upon with the CEO at the beginning of the year. For the CEO, the Compensation Committee determined the individual performance factor. The Compensation Committee determined Mr. Robo’s 2019 individual performance factor based on the Compensation Committee’s assessment of his performance and the Company’s overall 2019 performance as described in theExecutive Summary.

The following illustrates the determination of the 2019 annual incentive for each NEO:

annual incentive = (NextEra Energy performance rating x individual performance factor) x target annual incentive

49


In years where the Company’s performance is above or substantially above the performance of its peers as evidenced by industry benchmarks, as it was in 2019, the Company expects that annual incentive awards will be paid to the NEOs at a rate exceeding the target rate. For 2019, the NEOs’ annual incentive awards were as follows:

Named Executive Officer(1)

 

 

 

2019 Target Annual

Incentive

 

  

 

2019 Annual Incentive

Award

 

 
   

 

James L. Robo

 

  

 

$2,320,000

 

 

 

  

 

$4,570,400

 

 

 

   

 

Rebecca J. Kujawa

 

  

 

$   370,300

 

 

 

  

 

$   729,500

 

 

 

   

 

John W. Ketchum

 

  

 

$   688,660

 

 

 

  

 

$1,356,700

 

 

 

   

 

Eric E. Silagy

 

  

 

$   807,870

 

 

 

  

 

$1,591,500

 

 

 

   

 

Manoochehr K. Nazar

 

  

 

$   698,250

 

 

 

  

 

$1,375,600

 

 

 

   

 

Charles E. Sieving

 

  

 

$   601,440

 

 

 

  

 

$1,172,800

 

 

 

(1)

Armando Pimentel, Jr. retired and did not receive a 2019 annual incentive award.

The amounts set forth above for the NEOs’ 2019 annual incentive awards also are set forth in the“Non-Equity Incentive Plan Compensation” column (column (g)) inTable 1a: 2019 Summary Compensation Table.

2019 Long-Term Performance-Based Equity Compensation

Equity Compensation Mix

What We Granted

Why We Granted It

Performance shares

Directly focus NEOs on the multi-year sustained achievement of challenging TSR, financial and operational goals, because the number of shares ultimately earned depends upon the Company’s exceptional performance as described in theExecutive Summary, above, as well as (for each NEO other than the CEO)and the NEO’s performance relativeover a three-year performance period.

Performance-based restricted stock

Includes a performance goal; affected by all stock price changes, so value to NEOs affected by both increases and decreases in the Company’s stock price.

Performance-based restricted NEP common units

Includes a set of objectives agreed upon withperformance goal; affected by all common unit price changes, so value to NEOs affected by both increases and decreases in NEP’s common unit price.

Stock options

Reward the CEO atNEOs only if the beginning ofCompany’s stock price increases and remains above the year. For the CEO, the Compensation Committee determined the individual performance factor. The Compensation Committee determined Mr. Robo’s 2016 individual performance factor basedstock price on the Committee’s assessmentdate of his performance and the Company’s overall 2016 performance as described in theExecutive Summary above.

The following illustrates the determination of the 2016 annual incentive for each NEO:

annual incentive = (NextEra Energy performance rating x individual performance factor) x target annual incentive

58


In years where the Company’s performance is above or substantially above the performance of its peers as evidenced by industry benchmarks, as it was in 2016, the Company expects that annual incentive awards will be paid to the NEOs at a rate exceeding the target rate. For 2016, the NEOs’ annual incentive awards were as follows:

Named Executive Officer(1) 

2016 Target Annual

Incentive

  

2016 Annual Incentive

Award

 

James L. Robo

 $1,885,000  $3,732,300 

John W. Ketchum

 $402,500  $752,700 

Armando Pimentel, Jr.

 $586,670  $1,120,500 

Manoochehr K. Nazar

 $611,940  $1,168,800 

Eric E. Silagy

 $557,270  $1,114,500 

(1)

Moray Dewhurst retired and did not receive a 2016 annual incentive award.

The amounts set forth above for the NEOs’ 2016 annual incentive awards are also set forth in the “Non-Equity Incentive Plan Compensation” column (column (g)) inTable 1a: 2016 Summary Compensation Table.

2016 Long-Term Performance-Based Equity Compensation

Equity Compensation Mix

What We GrantedWhy We Granted It

Performance shares

Directly focus NEOs on the multi-year sustained achievement of challenging TSR, financial and operational goals, because the number of shares ultimately earned depends upon the Company’s and the NEO’s performance over a three-year performance periodgrant.

 

Performance-based restricted stock

Includes a performance goal; affected by all stock price changes, so

50


In determining the appropriate mix of equity compensation components, the Compensation Committee primarily considers the following factors:

the mix of these components at competitor and peer companies and emerging market trends;

the retention value of each element and other values important to the Company, including, for example, the tax and accounting consequences of each type of award;

the advice of the Compensation Consultant; and

the perceived value to the NEO of each element.

As shown below, the Compensation Committee continued its practice of granting NEOs equity-based compensation which is composed of a substantially greater percentage of performance share awards, since our shareholders indicated during our shareholder outreach that they most highly value to NEOs affected by both increases and decreases in the Company’s stock price

Stock options

Reward the NEOs only if the Company’s stock price increases and remains above the stock price on the date of grant

In determining the appropriate mix of equity compensation components, the Compensation Committee primarily considers the following factors:

the mix of these components at competitor and peer companies, and emerging market trends;

the retention value of each element and other values important to the Company, including, for example, the tax and accounting consequences of each type of award;

the advice of the Compensation Consultant; and

the perceived value to the NEO of each element.

As shown below, the Compensation Committee continued its practice of granting to the NEOs equity-based compensation which is composed of a substantially greater percentage of performance share awards, since our shareholders indicated, through shareholder outreach, that they most highly value the

59


longer-term performance features of performance shares. After the Compensation Committee determined the appropriate mix of equity compensation components, the target award level for each equity-based element was expressed as a percentage of each NEO’s target total direct compensation opportunity. The target dollar value for each component was converted to a number of shares of equivalent value (estimated present value for stock options and performance shares).

2019 Mix of Equity Compensation Awards for the NEOs

In 2019, the Compensation Committee granted the following mix of equity-based compensation to the NEOs:

 

 

Mix of Equity Compensation Awards(1)

 

     

Named Executive Officer

 

Performance
Shares

 

Options

 

Performance-
Based Restricted
Stock

 

Performance-
Based Restricted
NEP Common
Units

 

     

 

James L. Robo

 

 

 

 65%

 

 

 

 

 

 25%

 

 

 

 

 

    3%

 

 

 

 

 

  7%

 

 

 

     

 

Rebecca J. Kujawa

 

 

 

 60%

 

 

 

 

 

 20%

 

 

 

 

 

  13%

 

 

 

 

 

  7%

 

 

 

     

 

John W. Ketchum

 

 

 

 60%

 

 

 

 

 

 20%

 

 

 

 

 

  13%

 

 

 

 

 

  7%

 

 

 

     

 

Eric E. Silagy

 

 

 

 

 

 60%

 

 

 

 

 

 

 

 

 20%

 

 

 

 

 

 

 

 

  20%

 

 

 

 

 

 

 

 

—    

 

 

 

 

     

 

Manoochehr K. Nazar

 

 

 

 60%

 

 

 

 

 

 20%

 

 

 

 

 

  20%

 

 

 

 

 

—    

 

 

 

     

 

Charles E. Sieving

 

 

 

 

 

 60%

 

 

 

 

 

 

 

 

 20%

 

 

 

 

 

 

 

 

  13%

 

 

 

 

 

 

 

 

  7%

 

 

 

 

     

 

Armando Pimentel, Jr.

 

 

 

 60%

 

 

 

 

 

 20%

 

 

 

 

 

  13%

 

 

 

 

 

  7%

 

 

 

(1)

Calculation of mix percentages based on the grant date present value of each grant as a percentage of each NEO’s target total direct compensation opportunity. The target dollar value for each component was converted to a number of shares of equivalent value (estimated present value for stock options and performance shares).

2016 Mix of Equity Compensation Awards for the NEOs

In 2016, the Compensation Committee granted the following mix of equity-based compensation to the NEOs:compensation.

   Mix of Equity Compensation Awards(1) 
Named Executive Officer 

Performance

Shares

  Options  

Performance-

Based Restricted

Stock

 

James L. Robo

  60  13  27

John W. Ketchum

  50  19  31

Manoochehr K. Nazar

  50  19  31

Armando Pimentel, Jr.

  50  19  31

Eric E. Silagy

  50  19  31

Moray P. Dewhurst

  50  19  31

Performance Share Awards Granted in 2019 for the Performance Period Ending December 31, 2021

(1)

Calculation of mix percentages based on the grant date present value of each grant as a percentage of each NEO’s total equity-based compensation.

Performance Share Awards Granted in 2016 for the Performance Period Ending December 31, 2018

For the performance share awards granted in 2016 for the performance period beginning January 1, 2016 and ending December 31, 2018, the Compensation Committee continued to use the performance measures adopted in 2013 to ensure that the link between executive pay and TSR is embedded explicitly in the design of our executive compensation program. Additionally, the Compensation Committee implemented an individual performance factor ranging from +/- 20%

For the performance share awards granted in 2019 for the performance period beginning January 1, 2019 and ending December 31, 2021, the Compensation Committee continued to use the performance measures adopted in 2018 to ensure alignment in award design with TSR plan design trends and enable strong pay for performance alignment. The 2019 performance share awards have3-year adjusted ROE and EPS growth and operational measures as performance measures. Consistent with prior years, the awards also have an individual performance factor ranging from ±20%, which is applicable only to 65% of the performance share award determined based on financial and operational performance measures to enable the Compensation Committee to adjust payouts based on their assessment of the NEO’s individual performance. The goals used to measure long-term performance for purposes of the NEOs’ performance

51


share awards are different both in terms of the objectives and time-frames than the goals used to measure short-term performance under the Company’s Annual Incentive Plan. The measures, and their relative weights, are set forth below:

Performance Measure

                Weight                 

3-year TSR relative to top ten power companies by market capitalization, which is a subset of the S&P 500 Utilities Index

±20% modifier to
award payout

3-year adjusted ROE and adjusted EPS growth (determined using a financial matrix similar to the one set forth on page 46)

80%

Operational measures:

  3-year average employee safety—OSHA recordables/200,000 hours

  Nuclear industry composite performance index (combined for FPL and NextEra Energy Resources nuclear facilities)

  3-year average equivalent forced outage rate (fossil and renewable generation)

  FPL3-year average service reliability—service unavailability (minutes)

5% each

During the performance period, performance shares are not issued, the NEO may not sell or transfer the NEO’s contingent right to receive performance shares and dividends are not paid.

Payout of Performance Share Awards Granted in 2017 for the Performance Period Ended December 31, 2019

Each NEO was granted a target number of performance shares in 2017 for a three-year performance period beginning January 1, 2017 and ending on December 31, 2019. The Compensation Committee views the payout of this grant after the end of the performance period as part of each NEO’s2017compensation, while the performance shares granted in 2019 for the performance period ending on December 31, 2021 are considered to be part of each NEO’s2019 compensation, even though the shares will not be issued, if at all, until February 2022.

At the end of the performance period for the performance share awards granted in 2017, each NEO’s performance share award payout, other than Mrs. Kujawa’s payout, was determined in accordance with measures and weights as set forth below:

Performance Measure

                Weight                 

3-year TSR relative to the companies in the S&P 500 Utilities Index

35%

3-year adjusted return on equity and adjusted EPS growth (determined using a financial matrix similar to the one set forth on page 46)

52%

Operational measures:

  3-year average employee safety—OSHA recordables/200,000 hours

  Nuclear industry composite performance index (combined for FPL and NextEra Energy Resources nuclear facilities)

  3-year average equivalent forced outage rate (fossil and renewable generation)

  FPL3-year average service reliability—service unavailability (minutes)

3.25% each

52


The 2017 performance share award overall rating, determined in this manner, was 2.00, as shown below.

    

 

Performance Measure(1)

 

Weight

 

Result

 

Payout as a %
of Target

 

    

 

Adjusted EPS Growth and Adjusted ROE

 

 

 

52

 

 

 

 

2.00

 

 

 

 

 

200

 

 

    

 

Operational Measures

 

 

 

13

 

 

 

 

1.91

 

 

 

 

 

191

 

 

    

 

Relative TSR

 

 

 

35

 

 

 

 

2.00

 

 

 

 

 

200

 

 

    

 

Overall Rating

 

 

 

1.99

 

 

 

 

 

199

 

 

    

 

Overall Rating (after applying individual performance factors)(1)

 

 

 

2.00

 

 

 

 

 

200

 

 

(1)

Each NEO’s individual performance factor ranges from +/- 20% (applicable to 65% of the performance share award determined based on financial and operational performance measures, to enable the Compensation Committee to adjust payouts based on their assessment of themeasures). After applying each NEO’s individual performance. The goals used to measure long-term performance factor, the NEOs, except for purposesMrs. Kujawa, received an overall rating of the NEOs’ performance share awards are different both in terms of the objectives and time-frames than the goals used to measure short-term performance under the Company’s Annual Incentive Plan. The measures, and their relative weights, are set forth below:2.00.

Applying the overall rating results to the target performance shares resulted in the following performance share award payouts for each of the NEOs:

 

Performance Measure                 Weight                

3-year TSR relative to the companies in the S&P 500 Utilities Index

35%

3-year adjusted return on equity and adjusted EPS growth (determined using a financial matrix similar to the one set forth on page 55)

52%

Operational measures:

  3-year average employee safety—OSHA recordables/200,000 hours

  Nuclear industry composite performance index (combined for FPL and NextEra Energy Resources nuclear facilities)

  3-year average equivalent forced outage rate (fossil and renewable generation)

  FPL 3-year average service reliability—service unavailability (minutes)

3.25% each

During the performance period, performance shares are not issued, the NEO may not sell or transfer the NEO’s contingent right to receive performance shares and dividends are not paid.

Named Executive Officer

 

 

Target Performance Shares
for Performance Period
1/1/17-12/31/19

 

Performance Shares Earned

 

   

 

James L. Robo

 

 

 

55,660

 

 

 

 

111,320

 

 

   

 

Rebecca J. Kujawa(1)

 

 

 

918

 

 

 

 

1,679

 

 

   

 

John W. Ketchum

 

 

 

8,564

 

 

 

 

17,128

 

 

   

 

Eric E. Silagy

 

 

 

11,733

 

 

 

 

23,466

 

 

   

 

Manoochehr K. Nazar

 

 

 

10,995

 

 

 

 

21,990

 

 

   

 

Charles E. Sieving

 

 

 

7,509

 

 

 

 

15,018

 

 

   

 

Armando Pimentel, Jr.

 

 

 

13,743

 

 

 

 

27,486

 

 

 

(1)

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Performance Share Awards for the Performance Period Ended December 31, 2016

Each NEO was granted a target number of performance shares in 2014 for a three-year performance period beginning January 1, 2014 and ended on December 31, 2016. The Compensation Committee views the payout of this grant after the end of the performance period as part of each NEO’s2014 compensation, while the performance shares granted in 2016 for the performance period ending on December 31, 2018 are considered to be part of each NEO’s2016 compensation, even though the shares will not be issued, if at all, until February 2019.

At the end of the performance period for the performance share awards granted in 2014, each NEO’sRebecca J. Kujawa’s 2017 performance share award payout other than Mr. Ketchum’s payout, was determined in accordance with measures and weights described in the table above underPerformance Share Awards Granted in 2016 for the Performance Period Ending December31, 2018.

The 2014by multiplying her target number of shares by her three-year average performance share award overall rating determined in this manner, was 1.76, as shown below.

Performance Measure Weight  Result  Payout as a %
of Target
 

Adjusted EPS Growth and Adjusted ROE

  52  2.00   200

Operational Measures

  13  1.94   194

Relative TSR

  35  1.33   133

Overall Rating

      1.76   176

Applyingunder the overall rating results to the target performance shares resulted in the following performance share award payoutsAnnual Incentive Plan for each of the NEOs:

Named Executive Officer Target Performance Shares
for Performance Period
1/1/14-12/31/16
  Performance Shares Earned 

James L. Robo

  45,324   79,770 

John W. Ketchum(1)

  1,837   3,288 

Armando Pimentel, Jr.

  9,996   17,592 

Manoochehr K. Nazar

  10,805   19,016 

Eric E. Silagy

  5,103   8,981 

Moray P. Dewhurst

  13,881   24,430 

(1)

John Ketchum’s 2014 performance share award payout was determined by multiplying his target number of performance shares by his three-year average performance rating determined under the Annual Incentive Plan for each of 2014, 2015 and 2016.

SeeTable 2: 2016 Grants of Plan-Based Awards for information about the performance shares awarded to the NEOs in 2016, andTable 4: 2016 Option Exercises and Stock Vestedfor additional information about the performance shares issued for the three-year performance period which began on January 1, 2014 and ended on December 31, 2016.

Performance-Based Restricted Stock Granted in 2016

The performance objective for performance-based restricted stock was increased substantially in 2013, from adjusted earnings of $500 million to adjusted earnings of $1.2 billion. Therefore, the shares of performance-based restricted stock granted in 2016, which would otherwise vest ratably in 2017, 2018 and 2019.

SeeTable 2: 2019 Grants of Plan-Based Awards for information about the performance shares awarded to the NEOs in 2019 andTable 4: 2019 Option Exercises and Stock Vestedfor additional information about the performance shares issued for the three-year performance period which began on January 1, 2017 and ended on December 31, 2019.

Performance-Based Restricted Stock Granted in 2019

The performance objective for performance-based restricted stock is adjusted earnings of $1.2 billion. The shares of performance-based restricted stock granted in 2019 will not vest unless and until the Compensation Committee certifies that NextEra Energy’s adjusted earnings for each of 2019, 2020 and 2021, respectively, equal or exceed $1.2 billion.

Because the Compensation Committee intends for the grant date present value of performance-based restricted stock awards to equal the fair market value of an equivalent number of shares of the Company’s common stock absent the performance and vesting conditions, dividends are paid on performance-based restricted stock awards as and when dividends are paid on the common stock. However, any dividends paid on performance-based restricted stock awards that do not vestmustbe repaid within 30 days following forfeiture of the award.

SeeTable 2: 2019 Grants of Plan-Based Awards for information about the performance-based restricted stock awarded to the NEOs in 2019 and the description following that table for information about the material terms and conditions applicable to those performance-based restricted stock awards.

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Performance-Based Restricted NEP Common Units Granted in 2019

In February 2019, as part of the Compensation Committee’s setting of 2019 long-term performance-based incentive compensation for the NEOs, the Compensation Committee expressed its preference that a portion of the long-term performance-based incentive compensation to be awarded to the NEOs who also are officers of NEP be granted in the form of NEP performance-based restricted common units (“NEP Awards”). The Compensation Committee concluded that the proposed NEP Awards would further align the incentive compensation of these NEOs to activities that promote the growth of long-term value for shareholders of the Company. After considering this and other factors, the Board of Directors of NEP (the “NEP Board”) in February 2019 approved grants of NEP Awards to those Company NEOs who also are officers of NEP, as well as to other officers and employees of the Company or its affiliates who are responsible for significant NEP activities.

The NEP Awards received by the NEOs did not increase the NEOs’ overall incentive compensation opportunity, but instead replaced on adollar-for-dollar basis approximately 7% of the aggregate grant date value of the portion of their long-term performance-based awards in 2019 that otherwise would have been issued in the form of performance-based restricted stock of the Company. The performance objective for NEP Awards is adjusted EBITDA of $400 million. Therefore, the NEP Awards granted in 2019 will not vest unless and until the NEP Board certifies that NEP’s adjusted EBITDA for 2019, 2020 and 2021, respectively, equals or exceeds $400 million.

The NEP Awards were made pursuant to the NextEra Energy Partners, LP 2014 Long Term Incentive Plan (“NEP 2014 LTIP”). NEP will be reimbursed by the Company for the grant date fair value of all NEP Awards granted to employees and officers of the Company or its affiliates.

SeeTable 2: 2019 Grants of Plan-Based Awards for information about the performance-based restricted NEP common units awarded to the NEOs in 2019 and the description following that table for information about the material terms and conditions applicable to those performance-based restricted common units.

Non-Qualified Stock Option Awards in 2019

The Compensation Committee grantsnon-qualified stock options, rather than incentive stock options, primarily because the tax treatment ofnon-qualified stock options is more favorable to the Company than the treatment of incentive stock options. The 2011 LTIP prohibits repricing of awarded options without shareholder approval. SeeTable 2: 2019 Grants of Plan-Based Awardsfor information about the stock options granted to the NEOs in 2019 will not vest unless and until the Compensation Committee certifies that NextEra Energy’s adjusted earnings for 2017, 2018 and 2019, respectively, equal or exceed $1.2 billion.

Because the Compensation Committee intends for the grant date present value of performance-based restricted stock awards to equal the fair market value of an equivalent number of shares of the Company’s common stock absent the performance and vesting conditions, dividends are paid on performance-based restricted stock awards as and when dividends are paid on the common stock. However, any dividends

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paid on performance-based restricted stock awards that do not vestmustbe repaid within 30 days following forfeiture of the award.

SeeTable 2: 2016 Grants of Plan-Based Awards for information about the performance-based restricted stock awarded to the NEOs in 2016 and the description following that table for information about the material terms and conditions applicable to those performance-based restricted stock awards.

Non-Qualified Stock Option Awards in 2016

The Compensation Committee grants non-qualified stock options, rather than incentive stock options, primarily because the tax treatment of non-qualified stock options is more favorable to the Company than the treatment of incentive stock options. The 2011 LTIP prohibits repricing of awarded options without shareholder approval. SeeTable 2: 2016 Grants of Plan-Based Awardsfor information about the stock options granted to the NEOs in 2016 and the description following that table for further information about the material terms and conditions applicable to stock options.

Equity Grant Practices

Equity awards are granted by the Compensation Committee to the NEOs each year effective on the date of the Board meeting inmid-February, which is a date that is normally set two years in advance of the meeting.advance. The Compensation Committee believes that granting equity in this way is appropriate because the Company typically releasesyear-end earnings in late January, or early February, so all relevant information generally should be available to the market on the grant date. Equity awards may also be made to new executive officers upon hire or promotion, generally coincident with the date of hire or promotion or the Compensation Committee meeting next following the date of hire or promotion. The Compensation Committee does not seek to time equity grants to take advantage of information, either positive or negative, about the Company which has not been publicly disseminated. The exercise price of options granted is equal to the closing market price of NextEra Energy’s common stock on the effective date of grant.

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How We Make Compensation Decisions

Compensation Committee Role and Processes; Role of External Consultant

The Compensation Committee plans its agendas to ensure a thorough and thoughtful decision process. Typically, information regarding strategic decisions with respect to the NEOs is presented at one meeting to the Compensation Committee, which makes its decision at a subsequent meeting. This allows time forfollow-up questions from Compensation Committee members in advance of the final decision.

The Compensation Committee had an executive session at the end of each of its 2019 meetings, during which no executive officers were present. During the appropriate executive sessions, the Compensation Committee evaluated the performance of the chairman and CEO, discussed and approved the compensation of the chairman and CEO, met with the Compensation Consultant and discussed and considered such other matters as it deemed appropriate.

During 2019, the Compensation Committee engaged Frederic W. Cook & Co., Inc. (“FW Cook”), an independent executive compensation consulting firm which performed no other services for NextEra Energy or its affiliates, to provide advice and counsel to the Compensation Committee fromtime-to-time. FW Cook is sometimes referred to as the “Compensation Consultant.”

In 2019, the Compensation Consultant participated in all Compensation Committee meetings. In accordance with its engagement letter, during the 2019 executive compensation cycle, FW Cook provided the Compensation Committee and the Company with analyses and advice on topics such as pay competitiveness and executive compensation program plan design. FW Cook also benchmarked and discussed with the Compensation Committee its recommendation with respect tonon-employee director compensation. The Compensation Consultant also monitored current and emerging market trends and reported to the Compensation Committee on such trends and their impact on the Company compensation practices. In 2019, the Compensation Committee also assessed the independence of FW Cook in accordance with SEC rules and concluded that the Compensation Consultant’s work for the Compensation Committee did not raise any conflicts of interest.

Compensation Resources

The Compensation Committee used its business judgment to set each NEO’s target total direct compensation opportunity for 2019 and each compensation element. The Compensation Committee based its determination on its integrated assessment of a series of factors, including competitive alternatives, individual and team contribution and performance, corporate performance, complexity and importance of role and responsibilities, experience, leadership and growth potential and the relationship of the NEO’s pay to the pay of NextEra Energy’s other executive officers. There are no material differences among NEOs with respect to the application of NextEra Energy’s compensation policies or the way in which total compensation opportunity is determined.

The Compensation Committee primarily used the following resources to aid in its determination of the 2019 target total direct compensation opportunity for each NEO.

Market Comparisons/Peer Group

When establishing each NEO’s target total direct compensation opportunity for 2019, the Compensation Committee considered the competitive market for comparable executives and compensation opportunities provided by comparable companies. Competition for executive talent primarily affects the aggregate level of the target total direct compensation opportunity available to the NEOs.

The Compensation Committee believes that it is critical to the Company’s long-term performance to offer its executive officers compensation opportunities broadly commensurate with their competitive alternatives. The Company obtained market comparison information for all NEOs from publicly-available peer group information. The Company’s peer group is composed of a set of companies from the energy services

55


industry and a set of companies from general industry. These companies were selected by the Compensation Committee with input from executive officers (including the CEO) and the Compensation Consultant. The Compensation Committee believes that the use of companies both from the energy services industry and from general industry was appropriate because the Company’s executive officers come both from within and from outside the Company’s industry. NEOs were recruited from within and outside the Company’s industry and the Compensation Committee believes that their opportunities for alternative employment are not limited to other energy or utility companies.

For 2019, the Compensation Committee conducted a review of the then-existing 2018 peer group based on the following criteria:

Selection Criteria
Energy Services IndustryGeneral Industry

  Publicly-traded companies with a strong United States domestic presence

  Classified with a Standard Industrial Classification (“SIC”) code similar to the Company’s SIC code

  Annual revenue greater than $5 billion

  A potential source of executive talent

  Included in an executive compensation survey database provided by a third party

  Publicly-traded companies with a strong United States domestic presence

  In the S&P 500

  Considered highly reputable and highly regarded for operational excellence, product/service leadership or customer experience

  Sustained revenues typically between 50% and 250% of the Company’s revenues

  Consistently high performing

  Heavily industrialized, highly regulated or a producer of consumer staples

  Operate in industries which may be potential sources of executive talent

  No unusual executive pay arrangements

  Included in an executive compensation survey database provided by a third party

  Contribute to diversity of industry representation in this segment of the peer group

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All energy services industry companies included in the Company’s 2018 peer group met these criteria and were retained by the Compensation Committee for the 2019 peer group and no additional companies were added to this group. The Compensation Committee determined that four general industry companies, Fluor Corporation, Hess Corporation, Principal Financial Group, Inc. and Xerox Corporation were outliers due to business transactions or the size of the companies. The Compensation Committee replaced these four companies with Danaher Corporation, Halliburton Company, Northrop Grumman and Thermo Fisher Scientific, Inc., which are in industries in which the Company competes for talent and the Compensation

Committee believes are more appropriately aligned with the Company’s business in terms of market capitalization and scope. Thus, the executive compensation programs of the following companies were reviewed as market comparators for 2019:

Energy Services Industry(n=14)

General Industry(n=21)

American Electric Power Company, Inc.

3M Company

Consolidated Edison, Inc.

Air Products and Chemicals, Inc.

Dominion Energy, Inc.

Anadarko Petroleum Corporation

Duke Energy Corporation

CIGNA Corporation

Edison International

Colgate-Palmolive Company

Entergy Corporation

Danaher Corporation

Exelon Corporation

Devon Energy Corporation

FirstEnergy Corp.

DowDuPont Inc.(1)

PG&E Corporation

Eaton Corporation

PPL Corporation

Emerson Electric Co.

Public Service Enterprise Group Incorporated

General Dynamics Corporation

Sempra Energy

Halliburton Company

The Southern Company

Honeywell International, Inc.

Xcel Energy Inc.

Kellogg Company

Marsh & McLennan

Northrop Grumman

Schlumberger Limited

Texas Instruments Incorporated

Thermo Fisher Scientific, Inc.

Union Pacific Corporation

Waste Management, Inc.

(1)

E.I. du Pont de Nemours and Company merged with The Dow Chemical Company effective August 21, 2017 to form DowDuPont Inc. and on April 1, 2019 completed thespin-off into three separate companies: Dow Inc., the materials science division, DuPont de Nemours, Inc., the specialty products division, and Corteva, Inc., the agriculture division.

Although the Compensation Committee did not target specific total compensation levels relative to industry peers (aso-called “percentile” approach), it generally reviewed peer company data at the 50th percentile for the general industry companies and the 75th percentile for the energy services industry companies. The Compensation Committee believes these levels were appropriate because:

the Company’s practice is to make a relatively high portion of each NEO’s compensation performance-based as compared to its peers;

the Company’s operations are more complex, more diverse and of a greater size than those of substantially all of its energy services industry peer companies;

57


the Company’s 2018 market capitalization and assets were above the 75th percentile of its general industry peer companies and its energy services industry peer companies; and

the Company’s 2018 market capitalization was over 30% greater than the 2nd largest energy services industry peer company’s market capitalization.

Other Resources

What We UseHow We Use It

“Tally sheets” and “walk-away charts”

Provides a check to ensure that the Compensation Committee sees the full value of all elements of the NEOs’ annual compensation, both as opportunity and as actually realized, and sees the actual results of its compensation decisions in the various situations under which employment may terminate

Reviews by the CEO

Prior to the beginning of the year, the Compensation Committee solicits performance reviews of the other NEOs and executive officers from the CEO for use as an additional input to the Compensation Committee’s determination of target total direct compensation opportunity and, after the end of the year, whether or not to use their discretion to adjust annual incentive compensation amounts determined using the formula discussed above

Other Practices and Policies Related to Compensation

Stock Ownership and Retention Policies

The Company believes it is important for executive officers to accumulate a significant amount of NextEra Energy common stock to align officers’ interests with those of the Company’s shareholders. NextEra Energy’s NEOs (and all other officers) are subject to a stock ownership policy and a stock retention policy. The Company believes these policies strongly reinforce NextEra Energy’s executive compensation philosophy and objectives. At the same time, the Company recognizes that the accumulation of a large, undiversified position in NextEra Energy common stock can at some point create undesired incentives, and it permits its officers some degree of diversification once the target level of holdings is reached.

Under the stock ownership policy, officers are expected, within three years after appointment to office, to own NextEra Energy common stock with a value equal to a multiple of their base salaries. Shares of NextEra Energy common stock and share units held in NextEra Energy’s employee benefit plans and deferred compensation plan are credited toward meeting this requirement. Unvested shares of performance-based restricted stock count, while shares subject to unpaid performance share awards and unexercised options do not count, toward the calculation of required holdings. The current multiples are as follows:

     Chief Executive Officer

7x base salary rate

     Senior Executive Officers

3x base salary rate

     Other Officers

1x base salary rate

58


As of December 31, 2019, all NEOs owned common stock in excess of their requirements.

Under the stock retention policy, until such time as the requirements of the stock ownership policy are met, NextEra Energy expects executive officers to retain (and not sell) a number of shares equal to at leasttwo-thirds of shares acquired through equity compensation awards (cumulatively, from the date of appointment as an executive officer). In addition, all of the NEOs (among other executive officers) must retainall shares of performance-based restricted stock for a minimum of 24 months after vesting (net of shares withheld for, or used to pay, taxes).

Officers who fail to comply with the retention policy may not be eligible for future equity-based compensation awards for atwo-year period. The CEO may approve the modification or reduction of the minimum retention requirements (other than for himself) to address the special needs of a particular officer, although to date there have been no such modifications or reductions.

Clawback Provisions

The Company has an incentive compensation recoupment, or “clawback,” policy which provides for recoupment of incentive compensation from current and former executive officers in the event of the occurrence of either of the following triggering events:

(1)

a decision by the Audit Committee that recoupment is appropriate in connection with an accounting restatement of the Company’s previously-published financial statements caused by what the Audit Committee deems to be materialnon-compliance by the Company with any financial reporting requirement under the federal securities laws (“Financial Statement Triggering Event”); or

(2)

a decision by the Compensation Committee that one or more performance metrics used for determining previously paid incentive compensation was incorrectly calculated and, if calculated correctly, would have resulted in a lower payment to one or more executive officers (“Performance Triggering Event”).

If a triggering event occurs, the Company will (to the extent permitted by applicable law) recoup from any current or former executive officer any incentive compensation paid or granted during the three-year period preceding the triggering event that was in excess of the amount that would have been paid or granted after giving effect, as applicable, to the accounting restatement that resulted from the Financial Statement Triggering Event or to what would have been the correct calculation of the performance metric(s) used in determining that a Performance Triggering Event had occurred. The incentive compensation to be recouped will be in an amount and form determined in the judgment of the Board. In addition, the 2011 LTIP provides that any award granted under the 2011 LTIP will be subject to mandatory repayment by the grantee to the extent that events occur that require such mandatory repayment under (a) any Company “clawback” or recoupment policy that is adopted to comply with the requirements of any applicable law, rule or regulation, or otherwise (such as the policy described above) or (b) any law, rule or regulation which imposes mandatory recoupment upon the occurrence of such events.

Anti-Hedging Policy

The Company’s Security Trading Policy (the “Trading Policy”), which applies to all Directors, executive officers and employees, prohibits hedging transactions with respect to securities of the Company. The Company considers it improper and inappropriate for any Company insider to engage in short-term or speculative transactions in the Company’s securities. Transactions in options, puts, calls or other derivative securities are prohibited. Additionally, certain forms of hedging transactions with respect to the Company’s securities, such as prepaid variable forwards, equity swaps and collars, are prohibited. These transactions allow an insider to continue to own covered securities without the full risks and rewards of ownership and the insider may no longer have the same objectives as the Company’s other shareholders. Therefore, these transactions are prohibited under the Trading Policy.

59


Risk Oversight

The Compensation Committee oversees compensation-related risks, including annually reviewing management’s assessment of risks related to employee compensation programs. In February 2020, the Compensation Committee reviewed management’s analysis of the Company’s compensation program risks and mitigation of those risks, as well as the Company’s ongoing compensation risk management process. The Committee reviewed, among other matters, the Board’s overall role in the oversight of the Company’s risk, the Compensation Committee’s role in the oversight of compensation-related risks, the relationship of certain risks to the Company’s compensation programs and policies and the compensation risk-related risk mitigation practices and controls which the Company has in place.

Additional 20162019 Compensation Elements

Benefits

General

NextEra Energy provides its executive officers with a comprehensive benefits program which includes health and welfare, life insurance and other personal benefits. For programs to which employees contribute premiums, executive officers pay the same premiums as other similarly-situated exempt employees. Retirement and other post-employment benefits are discussed below underPost-Employment Compensation. These benefits are an integral part of the total compensation package for NEOs, and the aggregate value is included in the information reviewed by the Compensation Committee annually to ensure the reasonableness and appropriateness of total rewards. In addition, NextEra Energy believes that the intrinsic value placed on personal benefits by the NEOs is generally greater than the incremental cost of those benefits to the Company.

Personal Benefits

NextEra Energy provides its executive officers with personal benefits which, in many cases, improve efficiency by allowing the executive officers to focus on their critical job responsibilities and/or increasing the hours they can devote to work. Some of these benefits also serve to better secure the safety of the executive officers and their families. The Compensation Committee and its Compensation Consultant periodically review the personal benefits offered by the Company to ensure that the program is competitive and producing the desired results. The Compensation Committee believes that the benefits the Company derives from these personal benefits more than offset their incremental cost to the Company.

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See footnote 2 toTable 1b: 20162019 Supplemental All Other Compensation for a description of the personal benefits provided to the NEOs for 2016.2019.

Use of Company-Owned Aircraft

Company aircraft are available to the NEOs, as well as other employees and directors, for business travel, which includes, in the judgment of the Governance & Nominating Committee, travel by NEOs to Company-approved outside board meetings and travel in connection with physical examinations. Among other advantages, business use of the aircraft by executives maximizes time efficiencies, provides a confidential environment for business discussions and enhances security.

NextEra Energy permits limitednon-business use of Company aircraft by NEOs when that use does not interfere with the use of Company aircraft for business purposes.Non-business use is generally discouraged, however, and must be approved in advance by the CEO. NEOs must pay the Company for theirnon-business use based on the rate prescribed by the IRS for valuingnon-commercial flights. A NEO traveling on Company aircraft for business purposes may, with the approval of the CEO, be accompanied by the NEO’s guests, spouse and/or other family members. In this circumstance, there is essentially no incremental cost to the Company associated with transporting the additional passengers. Unless the travel is important to carrying out the business responsibilities of the NEO, however, the Company generally requires payment by the NEO for these passengers based on the rates described above. Allnon-business

60


use of Company aircraft is reported to and reviewed by the Governance & Nominating Committee annually. In 2016,2019, the NEOs’ use of Company aircraft fornon-business purposes represented approximately 111178 passenger flight hours and for travel to Company-approved outside board meetings and annual physical examinations represented an additional approximately 1429 passenger flight hours. Company aircraft were used for a total of approximately 3,3014,110 passenger flight hours in the aggregate in 2016.2019.

Policy on Tax Reimbursements on Executive Perquisites

In accordance with the NextEra Energy, Inc. Policy on Tax Reimbursements on Executive Perquisites, the Company does not provide tax reimbursements on perquisites to the NEOs. In circumstances where the Compensation Committee deems such an action appropriate, the Company may provide tax reimbursements to executives as part of a plan, policy or arrangement applicable to a broad base of management employees of the Company, such as a relocation or expatriate tax equalization policy.

OUR OTHER IMPORTANT COMPENSATION PRACTICES AND POLICIES

Stock Ownership and Retention Policies

The Company believes it is important for executive officers to accumulate a significant amount of NextEra Energy common stock to align officers’ interests with those of the Company’s shareholders. NextEra Energy’s NEOs (and all other executives) are subject to a stock ownership policy and a stock retention policy. The Company believes these policies strongly reinforce NextEra Energy’s executive compensation philosophy and objectives. At the same time, the Company recognizes that the accumulation of a large, undiversified position in NextEra Energy common stock can at some point create undesired incentives, and it permits its officers some degree of diversification once the target level of holdings is reached. Under the stock ownership policy, officers are expected, within three years after appointment to office, to own NextEra Energy common stock with a value equal to a multiple of their base salaries. Shares of NextEra Energy common stock and share units held in NextEra Energy’s employee benefit plans and deferred compensation plan are credited toward meeting this requirement. Unvested shares of performance-based restricted stock count, while shares subject to unpaid performance share awards and unexercised options do not count, toward the calculation of required holdings. The current multiples are as follows:

Chief Executive Officer

seven times base salary rate

Senior Executive Officers

three times base salary rate

Other Officers

one times base salary rate

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As of December 31, 2016, all NEOs owned common stock in excess of their requirements.

Under the stock retention policy, until such time as the requirements of the stock ownership policy are met, NextEra Energy expects executive officers to retain (and not sell) a number of shares equal to at least two-thirds of shares acquired through equity compensation awards (cumulatively, from the date of appointment as an executive officer). In addition, in accordance with an amendment to the stock retention policy effective in March 2012, all of the NEOs (among other executive officers) must retainall shares of performance-based restricted stock which vest after March 16, 2012 for a minimum of 24 months after vesting (net of shares withheld for, or used to pay, taxes).

Officers who fail to comply with the retention policy may not be eligible for future equity-based compensation awards for a two-year period. The CEO may approve the modification or reduction of the minimum retention requirements (other than for himself) to address the special needs of a particular officer, although to date there have been no such modifications or reductions.

Clawback Provisions

In 2012, the Board adopted an incentive compensation recoupment, or “clawback,” policy which provides for recoupment of incentive compensation granted after the date the policy was adopted from current and former executive officers in the event of the occurrence of either of the following triggering events:

(1)

a decision by the Audit Committee that recoupment is appropriate in connection with an accounting restatement of the Company’s previously published financial statements caused by what the Audit Committee deems to be material non-compliance by the Company with any financial reporting requirement under the federal securities laws (“Financial Statement Triggering Event”); or

(2)

a decision by thePost-Employment Compensation Committee that one or more performance metrics used for determining previously paid incentive compensation was incorrectly calculated and, if calculated correctly, would have resulted in a lower payment to one or more executive officers (“Performance Triggering Event”).

If a triggering event occurs, the Company will (to the extent permitted by applicable law) recoup from any executive officer any incentive compensation paid or granted during the 3-year period preceding the triggering event that was in excess of the amount that would have been paid or granted after giving effect, as applicable, to the accounting restatement that resulted from the Financial Statement Triggering Event or to what would have been the correct calculation of the performance metric(s) used in determining that a Performance Triggering Event had occurred. The incentive compensation to be recouped will be in an amount and form determined in the judgment of the Board. In addition, the 2011 LTIP provides that any award granted under the 2011 LTIP will be subject to mandatory repayment by the grantee to the extent the events occur that require such mandatory repayment under (a) any Company “clawback” or recoupment policy that is adopted to comply with the requirements of any applicable law, rule or regulation, or otherwise (such as the policy described above) or (b) any law, rule or regulation which imposes mandatory recoupment upon the occurrence of such events.

As noted above under 2016 Long-Term Performance-Based Equity Compensation—Performance-Based Restricted Stock Granted in 2016, any dividends paid to the NEOs on performance-based restricted stock awards that do not vestmust be repaid within 30 days following the forfeiture of the award.

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POST-EMPLOYMENT COMPENSATION

General

NextEra Energy expects continued and consistent high levels of individual performance from all executive officers as a condition of continued employment. The Company has in the past terminated the employment of executive officers who were unable to sustain the expected levels of performance, and it is prepared to do so in the future should that become necessary. All of the NEOs, including the CEO, are “employees at will.”

Set forth below is a description of the agreements and programs that may provide for compensation should thea NEO’s employment with the Company terminate under specified circumstances.

Severance Plan

The NextEra Energy, Inc. Executive Severance Benefit Plan (the “Severance Plan”) provides for the payment of severance benefits to the NEOs and to certain other senior executives if their employment with the Company is involuntarily terminated in specified circumstances. The purpose of the Severance Plan which was adopted by the Compensation Committee in February 2013, is to retain the covered senior executives and encourage dedication to their duties by ensuring the equitable treatment of those who may experience an involuntary termination, as defined in the Severance Plan. The Severance Plan provides severance benefits following involuntary termination in exchange for entry by the executive into a release of claims against the Company and an agreement to adhere to certainnon-competition and related covenants protective of the Company and its affiliates. Following a covered involuntary termination and the execution of the release and other agreement, the executive would receive a cash payment equal to two times the executive’s annual base salary plus two times the executive’s target annual incentive compensation for the year of termination, payable in two equal annual installments. In addition, the executive’s outstanding equity and equity-based awards would vest pro rata, and become payable at the end of any applicable performance periods, subject to the attainment by the Company of the specified performance objectives. The executive also would receive certain ancillary benefits, including outplacement assistance or payment in an amount equal to the value of the outplacement assistance. Amounts payable under the Severance Plan are subject to a cap specified in the Severance Plan.

The Company may amend or terminate the Severance Plan, in full or in part, at any time, but if an amendment or termination would affect the rights of an executive, the executive must agree in writing to the amendment or termination. The Severance Plan does not provide for the payment of severance benefits upon terminations governed by the terms of the Retention Agreements described below.

Change in Control

Each of the NEOs is a party to an executive retention employment agreement (“Retention Agreement”) with the Company. The Compensation Committee has concluded that the Retention Agreements are desirable in order to align NEO and shareholder interests under some unusual conditions, as well as useful and, in some cases, necessary to attract and retain senior executive talent.

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In connection with a change in control of the Company, it can be important to secure the dedicated attention of executive officers whose personal positions are at risk and who have other opportunities readily available to them. By establishing compensation and benefits payable under various merger and acquisition scenarios, change in control agreements enable the NEOs to set aside personal financial and career objectives and focus on maximizing shareholder value. These agreements also help the officer to maintain an objective and neutral perspective in analyzing opportunities that may arise. Furthermore, they ensure continuity of the leadership team at a time when business continuity is of paramount concern. Without the Retention Agreements, the Company would have a greater risk of losing key executives in times of uncertainty.

65


Retention Agreements entered into since 2009 do not include excise taxgross-ups. The material terms of the Retention Agreements are described underPotential Payments Upon Termination or Change in Control. on page 81.

Retirement Programs

Employee Pension Plan and 401(k) Plan

NextEra Energy maintains two retirement plans which qualify for favorable tax treatment under the Code:Internal Revenue Code (“Code”): anon-contributory defined benefit pension plan and a defined contribution 401(k) plan. These plans are available to substantially all NextEra Energy employees. Each of the NEOs participates in both plans. The pension plan is more fully described followingTable 5: Pension Benefits.

Supplemental Executive Retirement Plan (“SERP”)

Current tax laws place various limits on the benefits payable undertax-qualified retirement plans, such as NextEra Energy’s defined benefit pension plan and 401(k) plan, including a limit on the amount of annual compensation that can be taken into account when applying the plans’ benefit formulas. Therefore, the retirement incomes provided to the NEOs by the qualified plans generally constitute a smaller percentage of final pay than is typically the case for other Company employees. In order to make up for this and maintain the market-competitiveness of NextEra Energy’s executive retirement benefits, NextEra Energy maintains an unfunded,non-qualified SERP for its executive officers, including the NEOs. For the NEOs, compensation included under the SERP is annual base salary plus the actual annual cash incentive award, as opposed to the compensation included under the qualified plans, which is annual base salary only. NextEra Energy believes it is appropriate to include annual cash incentive awards for purposes of determining retirement plan benefits (both defined benefit pension and 401(k)) for the NEOs in order to ensure that the NEOs can replace in retirement a proportion of total compensation similar to that replaced by other employees participating in the Company’s defined benefit pension and 401(k) plans, bearing in mind that base salary alone constitutes a relatively smaller percentage of a NEO’s total compensation.

For additional information about the defined benefit plan benefit formulas under the SERP, seeTable 5: Pension Benefits and accompanying descriptions.

Deferred Compensation Plan

NextEra Energy sponsors anon-qualified, unfunded Deferred Compensation Plan, which allows eligible highly compensated employees, including the NEOs, voluntarily and at their own risk to elect to defer certain forms of compensation prior to the compensation being earned and vested. NextEra Energy makes this opportunity available to its highly compensated employees as a financial planning tool and an additional method to save for retirement. Deferrals by executive officers generally result in the Company deferring its obligation to make cash payments or issue shares of its common stock to those executive officers.

The Compensation Committee does not view the Deferred Compensation Plan as providing executives with additional compensation. Participants in the Deferred Compensation Plan are general creditors of the Company and the deferral of the payment obligation provides a financial advantage to the Company. Mr. Nazar elected to defer 50% of his base salary in 2016.

For additional information about the Deferred Compensation Plan, seeTable 6: Nonqualified Deferred Compensation and accompanying descriptions.

 

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TAX CONSIDERATIONSTax Considerations

The Compensation Committee carefully considers the tax impact of the Company’s compensation programs on NextEra Energy as well as on the NEOs. However, the Compensation Committee believes that decisions regarding executive compensation should be primarily based on whether they result in positive long-term value for the Company’s shareholders and other important stakeholders. For example,In light of the Compensation Committee has consideredrepeal of the impact of tax provisions such as sectionperformance-based compensation exception to Section 162(m) of the Code, the Compensation Committee expects compensation granted or paid in structuring NextEra Energy’s executive compensation program2019 and to the extent reasonably possible in light of its compensation goals and objectives, the compensation paid to the NEOs has been structured with the expectation that itfuture tax years will qualify as qualified performance-based compensationnot be fully deductible by the Company for federal income tax purposes under section 162(m) of the Code to the extent such section is applicable. However, in light of the competitive nature of the market for executive talent,purposes. While the Compensation Committee believes that shareholder interests are best served if it is more importantretains discretion and flexibility in awarding compensation, even though some compensation awards may result innon-deductible compensation expenses, the Compensation Committee intends to ensure that the NEOs remain focused on building shareholder value than to use a particular compensation practice or structure solely to ensure tax deductibility. Therefore, in some cases the compensation paid to NEOs is nondeductible, including in 2016, for example, a portionmaintain strongpay-for-performance alignment of Mr. Robo’s base salary, the value of certain of Mr. Robo’s personal benefits and the dividends accruing on his unvested performance-based restricted stock, which the Committee believes is appropriate, immaterial to the Company as a financial matter and consistent with the Company’s overall executive compensation design and philosophy.arrangements notwithstanding loss of deductibility due to repeal of the exemption for performance-based compensation.

Compensation Committee Report

The Compensation Committee has reviewed and discussed with management the Compensation Discussion & Analysis required by applicable SEC rules which precedes this Report and, based on its review and that discussion, the Compensation Committee recommended to the Board that the Compensation Discussion & Analysis set forth above be included in the Company’s proxy statement for the 20172020 annual meeting of shareholders.

Respectfully submitted,

Kirk S. Hachigian, Chair

Kenneth B. DunnSherry S. Barrat

James L. Camaren

Amy B. Lane

Rudy E. Schupp

Hansel E. Tookes, II

 

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Compensation Tables

When reviewing the narrative, tables and footnotes which follow, note that, in order to meet the goals and objectives of NextEra Energy’s executive compensation program as described inCompensation Discussion & Analysis, the Compensation Committee primarily focuses on, and values, each NEO’s total compensation opportunity at the beginning of the relevant performance periods. Since many elements of total compensation are variable, based on performance and are not paid to the NEO for one, two or three years (and in some instances longer) after the compensation opportunity is first determined, the amounts reported in some of the tables in this proxy statement may reflect compensation decisions made prior to 20162019 and in some cases reflect amounts different from the amounts that may ultimately be paid.

Table 1a: 20162019 Summary Compensation Table

The following table provides certain information about the compensation paid to, or accrued on behalf of, the NEOs in 2016.2019. It is important to keep in mind the following when reviewing the table:

 

The amounts shown in the “Stock Awards” and the “Option Awards” columns are based on the aggregate grant date fair value (including, where applicable, remeasurement date fair value) of awards computed under applicable accounting rules for all equity compensation awards.

 

The “Change in Pension Value and Nonqualified Deferred Compensation Earnings” column reflects the actuarially-determined change in the present value of the pension benefit payable to each NEO in the applicable year. These changes in present value are not related to any compensation decision on the part of the Compensation Committee.

Table 1a: 20162019 Summary Compensation Table

 

  
Name and Principal
Position(a)
 

Year

(b)

  

 Salary

 ($)(c)

  

 Bonus

 ($)(d)

  

 Stock

 Awards(3)(4)(5)

 ($)(e)

  

 Option

 Awards(3)(6)

 ($)(f)

  

Non-Equity

Incentive

Plan

Compen-

sation(7)

($)(g)

  

Change in

Pension

Value

and

Nonqualified

Deferred

Compensation

Earnings

(8)(9)

($)(h)

  

All Other

Compen-

sation(8)(10)

($)(i)

  

Total

($)(j)

  

Year

(b)

  

 Salary

 ($)(c)

  

 Bonus

 ($)(d)

  

 Stock

 Awards(4)(5)(6)

 ($)(e)

  

 Option

 Awards(4)(7)

 ($)(f)

  

Non-Equity

Incentive

Plan

Compen-

sation(8)

($)(g)

  

Change in

Pension

Value

and

Nonqualified

Deferred

Compensation

Earnings

(9)(10)

($)(h)

  

All Other

Compen-

sation(9)(11)

($)(i)

  

Total

($)(j)

 

James L. Robo

  2016   $1,300,000   $0   $9,629,404   $1,156,993  $3,732,300  $672,321  $267,753  $16,758,771   2019  $1,450,000  $0  $11,744,534  $2,825,000  $4,570,400  $906,719  $380,944  $21,877,597 

Chairman, President and CEO
of NextEra Energy and
Chairman of FPL

  2015  1,250,000   0  8,822,818   1,072,493  3,275,000   588,331  263,297   15,271,939 
 2014   1,215,000   0   6,656,308   825,497   2,780,528   480,606   225,357   12,183,296 
                 
                 

Chairman, President and CEO
of NextEra Energy and
Chairman of FPL(1)

  2018   1,400,000   0   11,611,417   2,624,993   4,480,000   854,722   387,610   21,358,742 
 2017   1,350,000   0   9,607,113   2,437,497   4,320,000   754,433   342,650   18,811,693 
         

Rebecca J. Kujawa

 

 

 

 

2019

 

 

 

 

 

 

529,000

 

 

 

 

 

 

0

 

 

 

 

 

 

1,496,724

 

 

 

 

 

 

280,600

 

 

 

 

 

 

729,500

 

 

 

 

 

 

110,820

 

 

 

 

 

 

66,153

 

 

 

 

 

 

3,212,797

 

 

Executive Vice President,
Finance and CFO of NextEra
Energy and FPL(1)(2)

          
         
         

John W. Ketchum

  2016  575,000   0  1,107,531   213,193  752,700   153,193  94,812   2,896,429  

 

 

 

2019

 

 

 

 

 

 

983,800

 

 

 

 

 

 

0

 

 

 

 

 

 

2,839,220

 

 

 

 

 

 

532,200

 

 

 

 

 

 

1,356,700

 

 

 

 

 

 

278,554

 

 

 

 

 

 

160,341

 

 

 

 

 

 

6,150,815

 

 

Executive Vice President,
Finance and CFO of NextEra
Energy and FPL(1)(2)

                  

President and CEO of NextEra
Energy Resources(2)

  2018   819,000   0   2,311,181   409,591   1,089,300   226,055   122,942   4,978,069 
 2017   650,000   0   1,653,209   325,089   873,600   185,793   107,847   3,795,538 
         

Eric E. Silagy

 

 

 

 

2019

 

 

 

 

 

 

1,154,100

 

 

 

 

 

 

0

 

 

 

 

 

 

3,668,772

 

 

 

 

 

 

687,700

 

 

 

 

 

 

1,591,500

 

 

 

 

 

 

368,555

 

 

 

 

 

 

175,873

 

 

 

 

 

 

7,646,500

 

 

President and CEO of FPL

  2018   1,049,200   0   3,065,463   543,287   1,461,500   315,204   166,656   6,601,310 
 2017   860,000   0   2,264,864   445,293   1,204,000   273,590   173,490   5,221,237 

Manoochehr K. Nazar

 

 

 

 

2019

 

 

 

 

 

 

997,500

 

 

 

 

 

 

0

 

 

 

 

 

 

2,454,867

 

 

 

 

 

 

460,100

 

 

 

 

 

 

1,375,600

 

 

 

 

 

 

382,497

 

 

 

 

 

 

158,775

 

 

 

 

 

 

5,829,339

 

 

President, Nuclear

Division of NextEra Energy
and FPL

  2018   950,000   0   2,472,314   438,200   1,330,000   357,796   159,229   5,707,539 
 2017   904,800   0   2,122,451   417,296   1,266,700   330,084   146,425   5,187,756 
         

Charles E. Sieving

 

 

 

 

2019

 

 

 

 

 

 

1,002,400

 

 

 

 

 

 

0

 

 

 

 

 

 

1,789,598

 

 

 

 

 

 

335,500

 

 

 

 

 

 

1,172,800

 

 

 

 

 

 

295,814

 

 

 

 

 

 

138,999

 

 

 

 

 

 

4,735,111

 

 

Executive Vice President and
General Counsel of NextEra
Energy and Executive Vice
President of FPL(2)

          
          

Armando Pimentel, Jr.

  2016  838,100   0  2,140,778   412,198  1,120,500   294,735  127,667   4,933,978  

 

 

 

2019

 

 

 

 

 

 

205,089

 

 

 

 

 

 

0

 

 

 

 

 

 

5,841,140

 

 

 

 

 

 

951,697

 

 

 

 

 

 

0

 

 

  
23,254
 
 

 

 

 

101,042

 

 

 

 

 

 

7,122,222

 

 

President and CEO
of NextEra Energy Resources

  2015   790,700   0   1,738,904   338,498   1,046,100   279,245   130,371   4,323,818 
 2014   745,900   0   1,610,805   319,288   1,039,000   241,233   115,948   4,072,174 

Manoochehr K. Nazar

  2016  874,200   0  1,938,471   373,290  1,168,800   303,519  142,154   4,800,434 

President, Nuclear

Division and Chief Nuclear
Officer of NextEra Energy and FPL

  2015  840,600   0  1,844,175   358,887  1,059,200   297,961  137,279   4,538,102 
 2014  808,300   0  1,741,188   345,094  1,126,000   263,977  155,395   4,439,954 
             
             
             

Eric E. Silagy

  2016  796,100   0  1,575,382   303,289  1,114,500   234,353  122,547   4,146,171 

President and CEO of FPL(1)

  2015  723,700   0  1,103,342   210,293  911,900   203,585  128,547   3,281,367 

Moray P. Dewhurst

  2016  164,698   0  7,820,607   796,499  0   280,181  56,854   9,118,839 

Former Vice Chairman and

CFO, and Executive VP, Finance

of NextEra Energy and Executive

Vice President, Finance and

CFO of FPL(1)(2)

  2015   738,300   0   2,391,945   465,600   1,023,300   212,461   113,249   4,944,855 
 2014   703,100   0   4,236,896   443,388   979,400   265,532   104,644   6,732,960 
                 
                 
                          

Former President and
CEO of NextEra Energy
Resources(2)(3)

  2018   1,004,600   0   3,296,321   584,188   1,272,800   353,407   153,133   6,664,449 
 2017   897,000   0   2,652,861   521,600   1,205,600   320,145   143,860   5,741,066 
                  

 

(1)

In accordance with SEC rules, for 2019, NextEra Energy’s last completed fiscal year, the ratio of the total compensation of Mr. Robo, the PEO, to NextEra Energy’s median employee’s annual compensation was 168 to 1. The median employee’s annual total compensation was $129,735. The total annual compensation of the PEO for purposes of calculating the pay ratio was

64


$21,877,597. As permitted by SEC rules, we are using the same median employee in our pay ratio calculation for 2019 as we used for 2018. We believe that there have not been any changes in our employee population or employee compensation arrangements since 2018 that would significantly impact our pay ratio for 2019. We previously identified our median employee for 2018 from our employee population as of December 31, 2018. On that date, NextEra Energy had 14,148 U.S.-based active employees. NextEra Energy had 105 employees in Canada and 69 employees in Spain (total of 174 employees) that were excluded in accordance with SEC rules from the median employee determination as they represented less than 5% of the Company’s workforce. The compensation measure used to identify the median employee was total cash compensation, and no employee’s compensation was annualized. Total cash compensation is the predominant form of employee remuneration. For the previously identified median employee, all of the elements of the employee’s 2019 compensation was combined in accordance with the applicable SEC rules.

(2)

Effective March 4, 2016,1, 2019, Mr. DewhurstPimentel retired, and Mr. Ketchum was appointed president and CEO of NextEra Energy Resources and Mrs. Kujawa was appointed executive vice president, finance and chief financial officer. Mr. Ketchum previously served as executive vice president, finance and chief financial officer of NEENextEra Energy and FPL. Mrs. Kujawa and Mr. Ketchum firstSieving became a NEONEOs in 2016.2019. Therefore, in accordance with SEC rules, only 2016 compensation is presented. Mr. Silagy first became a NEO in 2015. Therefore, in accordance with SEC rules, only 2016 and 20152019 compensation is presented.

 

(2)(3)

Mr. DewhurstPimentel retired from the Company inon March 2016.1, 2019. The salary shown for 20162019 includes the amount earned by Mr. DewhurstPimentel in 2016,2019, when his annual base salary rate was $738,300.$1,074,900.

 

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(3)(4)

The amounts shown represent the aggregate grant date fair value and, in certain cases in 2016, remeasurement date fair value, of equity-based compensation awards granted (or, in 2016, remeasured) during the relevant year, valued in accordance with applicable accounting rules, without reduction for estimated forfeitures. See Note 11 Common Shareholders’ Equity—Stock-Based Compensation to the consolidated financial statements in the Company’s Annual Report on Form10-K for the yearyears ended December 31, 2015,2019 and December 31, 2018, and Note 10 Common Shareholders’ Equity—Stock-Based Compensation to the consolidated financial statements in the Company’s Annual Report on Form10-K for the yearsyear ended December 31, 2016 and December 31, 2014,2017, for the assumptions used in this valuation.

 

(4)(5)

Includes performance basedperformance-based restricted stock and performance share awards valued based on the probable outcome of the performance conditions as of the grant date.date; and for Mrs. Kujawa and Messrs. Robo, Ketchum, Sieving and Pimentel, performance-based restricted NEP common units. The grant date fair value of performance-based restricted NEP common units is measured based upon the closing market price of NEP common units as of the date of grant, February 19, 2019. With respect to the performance shares granted in 2019 and 2018 to all NEOs, a performance rating assumption of 1.40 (i.e. target shares multiplied by 1.40) was used (in accordance with applicable accounting guidance) to value such performance share awards and grant date fair value for all NEOs was determined on the grant date using the Monte-Carlo simulation process with the variables listed in the table below. With respect to 65% of the target number of performance shares granted in 2016, 2015 and 20142017 to all NEOs, a performance rating assumption of 1.40 1.40 and 1.30, respectively (i.e. target shares multiplied by 1.30 or 1.40) was used (in accordance with applicable accounting guidance) to value such performance share awards. With respect to 35% of the target number of performance shares granted in 2016, 2015 and 2014 (payout of which is based on a comparison of the Company’s 3-year TSR with the 3-year TSRs of the other companies in the S&P 500 Utilities Index),2017, grant date fair value for all NEOs was determined on the grant date of grant using the Monte-Carlo simulation process with the following variables:

 

Description Market  Volatility  Yield  Interest Rate  Expected Life  Fair Value 

For the 2/12/2016 grant:

 $111.67   17.15  3.16  0.87  2.88 yr.  $126.65 

For the 2/13/2015 grant:

 $103.62   14.81  3.11  0.99  2.88 yr.  $113.34 

For the 2/14/2014 grant:

 $93.27   15.30  3.11  0.66  2.88 yr.  $108.58 

For Mr. Dewhurst, actual grant date fair value of stock awards granted in 2016 was $750,407. The additional amount shown in this column, $7,070,200, represents the incremental fair value of 2014, 2015 and 2016 stock awards, as required under applicable accounting guidance, in connection with Mr. Dewhurst’s retirement meeting the conditions for continued full vesting under his equity award agreements.

       

 

Description

 

 

Market

  

 

Volatility

 

 

Yield

  

 

Interest Rate

 

 

Expected Life

 

 

Fair Value

 
       

 

For the 2/14/2019 grant:

 

 

 

 

$182.61

 

 

 

 

  15.76%

 

 

 

 

2.93

 

 

 

  2.47%

 

 

2.88 yr.

 

 

 

 

$171.80

 

 

       

 

For the 2/15/2018 grant:

 

 

 

 

$154.43

 

 

 

 

  16.26%

 

 

 

 

3.05

 

 

 

  2.37%

 

 

2.87 yr.

 

 

 

 

$154.64

 

 

       

 

For the 2/17/2017 grant:

 

 

 

 

$126.86

 

 

 

 

  17.64%

 

 

 

 

3.16

 

 

 

  1.44%

 

 

2.87 yr.

 

 

 

 

$147.07

 

 

 

(5)

For Mr. Pimentel, actual grant date fair value of stock awards granted in 2019 was $555,521. The additional amount shown in this column, $5,285,619, represents the incremental fair value of 2017, 2018 and 2019 stock awards, as required under applicable accounting guidance, in connection with Mr. Pimentel’s retirement meeting the conditions for continued full vesting under his equity award agreements.

(6)

The maximum payout of performance shares granted in 20162019 is 2.00 times target. Therefore, the maximum aggregate grant date fair value of the awards granted in 20162019 is: for Mr. Robo, 106,80088,264 shares, or $9,309,089;$15,163,755; for Mrs. Kujawa, 10,114 shares, or $1,737,585; Mr. Ketchum, 19,184 shares, or $3,295,811; for Mr. Ketchum, 11,226Silagy, 24,790 shares, or $978,467;$4,258,922; for Mr. Nazar, 16,588 shares, or $2,849,818; for Mr. Sieving, 12,092 shares, or $2,077,406; and for Mr. Pimentel, 21,6983,754 shares, or $1,891,290; for Mr. Nazar, 19,648 shares, or $1,712,623; for Mr. Silagy, 15,968 shares, or $1,391,860; and for Mr. Dewhurst, 7,606 shares, or $662,971.$644,937.

 

(6)(7)

Representsnon-qualified stock options. For Mr. Dewhurst,Pimentel, actual grant date fair value of option awards granted in 20162019 was $144,499.$104,200. The additional amount shown for Mr. DewhurstPimentel in this column, $652,000,$847,497, represents the incremental fair value of 2014, 20152017, 2018 and 20162019 option awards, as required under applicable accounting guidance, in connection with Mr. Dewhurst’sPimentel’s retirement meeting the conditions for accelerated vesting under his option award agreements.

 

(7)(8)

Includes the amount earned by each NEO, as applicable, with respect to 2016, 20152019, 2018 and 20142017 under the Annual Incentive Plan. Mr. Dewhurst,Pimentel, who retired in 2016,2019, did not receive annual incentive compensation with respect to 2016.2019.

 

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(8)(9)

NextEra Energy maintains both defined benefit and defined contribution retirement plans (as described inCompensation Discussion & Analysis—Post-Employment Compensation—Retirement Programs)Programs). Company contributions to defined benefit and defined contribution retirement plans (both qualified and nonqualified) are allocated between columns (h) and (i), respectively.

 

(9)(10)

All amounts in this column reflect the one-year change in the actuarial present value of each NEO’s accumulated benefit under the tax-qualified defined benefit employee pension plan and the SERP, except for Mr. Pimentel, whose amount only reflects the change in the pension plan. Mr. Pimentel received a lump sum payment for the SERP of $2,821,667 in October 2019 and thus, on December 31, 2019, Mr. Pimentel no longer had a balance in the SERP. The Deferred Compensation Plan does not permit above-market interest to be credited and, therefore, no above-market interest was credited in 2016, 2015 or 2014.2019, 2018 and 2017.

 

(10)(11)

Additional information about the amounts for 20162019 set forth in the “All Other Compensation” column may be found inTable 1b: 20162019 Supplemental All Other Compensation, which immediately follows.

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The following table (Table 1b) provides additional information for 20162019 regarding column (i) ofTable 1a: 20162019 Summary Compensation Table.

Table 1b: 20162019 Supplemental All Other Compensation

 

  
Name Total From
Summary
Compensation
Table
($)
  Contributions
to Defined
Contribution
Plans(1)
($)
  Perquisites
and Other
Personal
Benefits(2)
($)
 

 

Total From
Summary
Compensation
Table
($)

 

Contributions
to Defined
Contribution
Plans(1)
($)

 

Perquisites
and Other
Personal
Benefits(2)
($)

  

James L. Robo

 $267,753  $217,276  $50,477 

 

 

 

$380,944

 

 

 

 

$281,620

 

 

 

 

$99,324

 

  

Rebecca J. Kujawa

 

 

 

66,153

 

 

 

 

40,776

 

 

 

 

25,377

 

  

John W. Ketchum

  94,812   54,858   39,954 

 

 

 

160,341

 

 

 

 

98,292

 

 

 

 

62,049

 

  

Eric E. Silagy

 

 

 

175,873

 

 

 

 

124,126

 

 

 

 

51,747

 

  

Manoochehr K. Nazar

 

 

 

158,775

 

 

 

 

110,504

 

 

 

 

48,271

 

  

Charles E. Sieving

 

 

 

138,999

 

 

 

 

96,862

 

 

 

 

42,137

 

  

Armando Pimentel, Jr.

  127,667   89,465   38,202 

 

 

 

101,042

 

 

 

 

81,393

 

 

 

 

19,649

 

Manoochehr K. Nazar

  142,154   91,812   50,342 

Eric E. Silagy

  122,547   81,077   41,470 

Moray P. Dewhurst

  56,854   56,430   424 

 

(1)

NextEra Energy maintains both defined benefit and defined contribution retirement plans. Amounts attributable to the defined benefit plans are reported inTable 1a: 20162019 Summary Compensation Table under column (h), “Change in Pension Value and Nonqualified Deferred Compensation Earnings.” Amounts attributable to the defined contribution plans are reported under column (i), “All Other Compensation,” and are further described below underAdditional Disclosure Related to Pension Benefits Table. This column includes employer matching contributions to the Company’s qualified 401(k) plan of $12,587$13,300 for each NEO, except for Messrs. Ketchum and Dewhurst,Mr. Pimentel, for whom an employer matching contributionscontribution of $11,925 and $2,905 were$2,558 was made, respectively, plus the Company’s contributions to the nonqualified defined contribution portion of the SERP.

 

(2)

This column includes the aggregate incremental cost to NextEra Energy of providing personal benefits to the NEOs. For each NEO, the personal benefits reported for 20162019 in this column include: annual premiums for $5 million in umbrella coverage under a group personal excess liability insurance policy; reimbursement for professional financial planning and legal services; for all NEOs other than Mr. Robo and Mrs. Kujawa, the cost of the officer’s participation in an executive vehicle program, which includes use of a Company-leased passenger vehicle, fuel and other ancillary costs (the incremental cost incurred for which was $29,171$24,794 for Mr. Ketchum, $28,354$27,475 for Mr. Pimentel, $29,357Silagy, $28,980 for Mr. Nazar, and $26,726$23,051 for Mr. Silagy)Sieving and $7,447 for Mr. Pimentel); for Mr. Robo, a vehicle allowance; for all NEOs other than Messrs. Silagy and Dewhurst,Mrs. Kujawa, a perquisite allowance of $24,231; for Mr. Robo, fees paid for travel programs such as airline memberships and hospitality room memberships; and, for Messrs. Robo, Silagy, Nazar and Sieving, costs for maintenance of a residential home security system and central station monitoring (except formonitoring. For Messrs. Ketchum, Pimentel, Nazar and Silagy); and, for Mr. Silagy, costs for club memberships used primarily for business but also available for personal and family use. For Mr. Nazar,Pimentel, the personal benefits reported in this column also include the costs of participation in a voluntary annual executive physical examination, including lodging costs and related expenses. For all NEOs, except Mr. Dewhurst, the personal benefits reported in this column also include premiums for a life insurance benefit in an amount equal to 2.5 times salary. For Messrs. Robo, Ketchum and Nazar,all NEOs, the personal benefits reported in this column also include the incremental cost to the Company for personal use of Company-owned aircraft, which is the variable operating costs of such use, net of payments to the Company by or on behalf of the NEOs, as is generally required by Company policy for such personal use. Variable operating costs include fuel, trip-related maintenance, crew travel expenses,on-board catering, landing fees, trip-related hangar/parking costs, excise taxes and other miscellaneous variable costs. The total annual variable costs are divided by the annual number of statute miles the Company aircraft flew to derive an average variable cost per mile. The incremental cost incurred was $48,640 for Mr. Robo.

66


Table 2: 20162019 Grants of Plan-Based Awards

The following table provides information about the cash and equity incentive compensation awarded to the NEOs in 2016.2019. It is important to keep in mind the following when reviewing the table:

 

 

Columns (c), (d) and (e) below set forth the range of possible payouts established under the Annual Incentive Plan for 2016,2019 and are not amounts actually paid to the NEOs. The actual amounts paid with respect to 20162019 under the Annual Incentive Plan, which is aNon-Equity Incentive Plan, as that term is used in the heading for columns (c), (d) and (e) of this table, are set forth inTable 1a: 20162019 Summary Compensation Table in column (g), entitled “Non-Equity“Non-Equity Incentive Plan Compensation.”

 

The number of shares listed under “Estimated Future Payouts Under Equity Incentive Plan Awards” (columns (g) and (h)) represent 20162019 grants (and, for Mr. Dewhurst, remeasurements under applicable accounting rules of grants made in and prior to 2016) of performance shares, performance-based restricted stock and performance-based restricted stock,NEP common units, the material terms of which are described below this table.

 

70


The number of shares listed under “All Other Option Awards: Number of Securities Underlying Options” (column (j)) and the exercise price set forth under “Exercise or Base Price of Option Awards” (column (k)) represent the number and exercise price of 20162019 grants ofnon-qualified stock options, (and, for Mr. Dewhurst, remeasurements under applicable accounting rules of grants made in and prior to 2016), the material terms of which are described below this table.

 

In the column headed “Grant Date Fair Value of Stock and Option Awards” (column (l)), the top number is the grant date fair value of the performance share award, the next number is the grant date fair value of the performance-based restricted stock award, and the third number is the grant date fair value of the stock options granted.granted and the fourth number is the grant date fair value of NEP performance-based restricted common units, as applicable. For Mr. Dewhurst,Pimentel, the awards marked with footnote (6)(5) in column (l) of the table representincludes the remeasured fair value of certain awards under applicable accounting rules, where the first three numbers represent the remeasured value of performance share awards, the next three numbers represent the remeasured value of performance-based restricted stock awards, the next two numbers represent the remeasured value of NEP performance-based restricted common units and the last three numbers represent the remeasured value of stock options.

67


Table 2: 20162019 Grants of Plan-Based Awards

 

   Grant
Date
(b)
  Estimated Future Payouts
Under Non-Equity
Incentive Plan Awards(1)
  Estimated Future Payouts
Under Equity
Incentive Plan Awards(2)
  All Other
Stock
Awards:
Number of
Shares of
Stock or
Units
(#) (i)
  All Other
Option
Awards:
Number of
Securities
Underlying
Options(3)
(#) (j)
  Exercise
or
Base Price
of Option
Awards
($/Sh)
(k)
  Grant Date
Fair Value
of
Stock
and Option
Awards($)(4)
(l)
     
Name(a)  Thre-
shold
($)
(c)
  Target
($)
(d)
  Maximum
($)
(e)
  

Thre-

shold
(#)
(f)

  Target
(#)
(g)
  Maximum
(#)
(h)
      

James L. Robo

    $0  $1,885,000  $3,770,000                          
   2/12/2016      0   53,400   106,800     $7,226,489(5)   
   2/12/2016      0   21,518   21,518     $2,402,915   
   2/12/2016                               101,848  $111.67  $1,156,993     

John W. Ketchum

     0   402,500   805,000                        
   2/12/2016      0   5,613   11,226      759,567(5)   
   2/12/2016      0   3,116   3,116      347,964   
   2/12/2016                               18,767   111.67   213,193     

Armando Pimentel, Jr.

     0   586,670   1,173,340                        
   2/12/2016      0   10,849   21,698      1,468,190(5)   
   2/12/2016      0   6,023   6,023      672,588   
   2/12/2016                               36,285   111.67   412,198     

Manoochehr K. Nazar

     0   611,940   1,223,880                        
   2/12/2016      0   9,824   19,648      1,329,423(5)   
   2/12/2016      0   5,454   5,454      609,048   
   2/12/2016                               32,860   111.67   373,290     

Eric E. Silagy

     0   557,270   1,114,540                        
   2/12/2016      0   7,984   15,968      1,080,461(5)   
   2/12/2016      0   4,432   4,432      494,921   
   2/12/2016                               26,698   111.67   303,289     

Moray P. Dewhurst

     0   0   0                        
   2/12/2016      0   3,803   7,606      514,671(5)   
   2/12/2016      0   2,111   2,111      235,735   
   2/12/2016          12,720   111.67   144,499   
         0   13,881   27,762      2,471,388(6)   
         0   13,046   26,092      2,136,091(6)   
         0   3,803   7,606      528,733(6)   
         0   9,733   9,733      1,125,135(6)   
         0   4,886   4,886      564,822(6)   
         0   2,111   2,111      244,032(6)   
             10,549   93.27   200,747(6)   
             22,790   103.62   312,223(6)   
                                  12,720   111.67   139,030(6)     

   

Grant
Date
(b)

  Estimated Future Payouts
UnderNon-Equity
Incentive Plan Awards(1)
  Estimated Future Payouts
Under Equity
Incentive Plan Awards(2)
  All Other
Stock
Awards:
Number of
Shares of
Stock or
Units
(#) (i)
  All Other
Option
Awards:
Number of
Securities
Underlying
Options(3)
(#) (j)
  Exercise
or
Base Price
of Option
Awards
($/Sh)
(k)
  Grant Date
Fair Value
of
Stock
and Option
Awards($)(4)(5)
(l)
 
Name(a) Thre-
shold
($)
(c)
  Target
($)
(d)
  Maximum
($)
(e)
  

Thre-

shold
(#)
(f)

  Target
(#)
(g)
  Maximum
(#)
(h)
 
            

 

James L. Robo 

 

 

 

 

 

 

 

 

 

 

$0

 

 

 

 

$

 

2,320,000

 

 

 

 

$

 

4,640,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

44,132

 

 

 

 

 

 

88,264

 

 

    

 

$

 

10,614,629

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

1,856

 

 

 

 

 

 

1,856

 

 

    

 

 

 

338,924

 

 

            
  

 

 

 

2/14/2019

 

 

        

 

 

 

141,250

 

 

 

 

$

 

182.61

 

 

 

 

 

 

2,825,000

 

 

            
  

 

 

 

2/19/2019

 

 

             

 

 

 

0

 

 

 

 

 

 

18,572

 

 

 

 

 

 

18,572

 

 

             

 

 

 

790,981

 

 

            

 

Rebecca J. Kujawa

 

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

370,300

 

 

 

 

 

 

740,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

5,057

 

 

 

 

 

 

10,114

 

 

    

 

 

 

1,216,310

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

998

 

 

 

 

 

 

998

 

 

    

 

 

 

182,245

 

 

            
  

 

 

 

2/14/2019

 

 

        

 

 

 

14,030

 

 

 

 

 

 

182.61

 

 

 

 

 

 

280,600

 

 

            
  

 

 

 

2/19/2019

 

 

             

 

 

 

0

 

 

 

 

 

 

2,305

 

 

 

 

 

 

2,305

 

 

             

 

 

 

98,170

 

 

            

 

John W. Ketchum

 

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

688,660

 

 

 

 

 

 

1,377,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

9,592

 

 

 

 

 

 

19,184

 

 

    

 

 

 

2,307,068

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

1,894

 

 

 

 

 

 

1,894

 

 

    

 

 

 

345,863

 

 

            
  

 

 

 

2/14/2019

 

 

        

 

 

 

26,610

 

 

 

 

 

 

182.61

 

 

 

 

 

 

532,200

 

 

            
  

 

 

 

2/19/2019

 

 

             

 

 

 

0

 

 

 

 

 

 

4,374

 

 

 

 

 

 

4,374

 

 

             

 

 

 

186,289

 

 

            

 

Eric E. Silagy

 

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

807,870

 

 

 

 

 

 

1,615,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

12,395

 

 

 

 

 

 

24,790

 

 

    

 

 

 

2,981,245

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

3,765

 

 

 

 

 

 

3,765

 

 

    

 

 

 

687,527

 

 

            
  

 

 

 

2/14/2019

 

 

                             

 

 

 

34,385

 

 

 

 

 

 

182.61

 

 

 

 

 

 

687,700

 

 

            

 

Manoochehr K. Nazar

 

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

698,250

 

 

 

 

 

 

1,396,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

8,294

 

 

 

 

 

 

16,588

 

 

    

 

 

 

1,994,873

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

2,519

 

 

 

 

 

 

2,519

 

 

    

 

 

 

459,995

 

 

            
  

 

 

 

2/14/2019

 

 

                             

 

 

 

23,005

 

 

 

 

 

 

182.61

 

 

 

 

 

 

460,100

 

 

            

 

Charles E. Sieving

 

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

601,440

 

 

 

 

 

 

1,202,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

6,046

 

 

 

 

 

 

12,092

 

 

    

 

 

 

1,454,184

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

1,194

 

 

 

 

 

 

1,194

 

 

    

 

 

 

218,036

 

 

            
  

 

 

 

2/14/2019

 

 

        

 

 

 

16,775

 

 

 

 

 

 

182.61

 

 

 

 

 

 

335,500

 

 

            
  

 

 

 

2/19/2019

 

 

             

 

 

 

0

 

 

 

 

 

 

2,756

 

 

 

 

 

 

2,756

 

 

             

 

 

 

117,378

 

 

            

 

Armando Pimentel, Jr.

 

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

0

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

1,877

 

 

 

 

 

 

3,754

 

 

    

 

 

 

464,069

 

 

            
  

 

 

 

2/14/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

370

 

 

 

 

 

 

370

 

 

    

 

 

 

69,608

 

 

            
  

 

 

 

2/14/2019

 

 

        

 

 

 

5,210

 

 

 

 

 

 

182.61

 

 

 

 

 

 

121,549

 

 

            
  

 

 

 

2/19/2019

 

 

    

 

 

 

0

 

 

 

 

 

 

857

 

 

 

 

 

 

857

 

 

    

 

 

 

36,491

 

 

            
  

 

 

 

 

 

     

 

 

 

13,743

 

 

 

 

 

 

27,486

 

 

    

 

 

 

1,901,994

 

(5) 

            
  

 

 

 

 

 

     

 

 

 

12,528

 

 

 

 

 

 

25,056

 

 

    

 

 

 

2,501,051

 

(5) 

            
  

 

 

 

 

 

     

 

 

 

1,877

 

 

 

 

 

 

3,754

 

 

    

 

 

 

437,548

 

(5) 

            
  

 

 

 

 

 

     

 

 

 

1,370

 

 

 

 

 

 

1,370

 

 

    

 

 

 

83,307

 

(5) 

            
  

 

 

 

 

 

     

 

 

 

1,638

 

 

 

 

 

 

1,638

 

 

    

 

 

 

175,365

 

(5) 

            
  

 

 

 

 

 

     

 

 

 

370

 

 

 

 

 

 

370

 

 

    

 

 

 

68,108

 

(5) 

            
  

 

 

 

 

 

     

 

 

 

3,400

 

 

 

 

 

 

3,400

 

 

    

 

 

 

82,268

 

(5) 

            
  

 

 

 

 

 

     

 

 

 

857

 

 

 

 

 

 

857

 

 

    

 

 

 

35,977

 

(5) 

            
  

 

 

 

 

 

        

 

 

 

13,122

 

 

 

 

 

 

126.86

 

 

 

 

 

 

263,269

 

(5) 

            
  

 

 

 

 

 

        

 

 

 

21,576

 

 

 

 

 

 

154.43

 

 

 

 

 

 

463,318

 

(5) 

            
  

 

 

 

 

 

                             

 

 

 

5,210

 

 

 

 

 

 

182.61

 

 

 

 

 

 

120,910

 

(5) 

 

71


(1)

Non-Equity Incentive Plan awards are paid under the Annual Incentive Plan, the material terms of which are described inCompensation Discussion & Analysis. For 2016,2019, amounts payable were paid in cash in February 2017.2020. See column (g) ofTable1a: 20162019 Summary Compensation Table for actual amounts paid with respect to 20162019 under the Annual Incentive Plan. Mr. DewhurstPimentel retired in March 20162019 and did not receive an annual incentive under the Annual Incentive Plan for 2016.2019.

 

68


(2)

EachIn 2019, each NEO was granted awards of performance shares and performance-based restricted stock under the 2011 LTIP in 2016.and for Mrs. Kujawa and Messrs. Robo, Ketchum, Sieving and Pimentel, performance-based restricted NEP common units under the NEP 2014 LTIP. Performance shares were granted in 20162019 for a three-year performance period ending December 31, 2018.2021. The number of shares which will ultimately be paid to each NEO at the end of the performance period will be determined by multiplying the NEO’s target number of performance shares by a percentage determined by the Compensation Committee based on the Company’s performance over the three-year performance period (as more fully described inCompensation Discussion & Analysis), which may not exceed 200% of the target award. See footnotes (5) through (10)(11) toTable 3: 20162019 Outstanding Equity Awards at Fiscal Year End for further information about the vesting of performance-based restricted stock.stock and performance-based restricted NEP common units.

 

(3)

Non-qualified stock options were granted under the 2011 LTIP in 2016.2019. The stock options generally vest and become exercisable at the rate ofone-third per year beginning approximately one year from date of grant and are fully exercisable after three years. See footnote (1) toTable 3: 20162019 Outstanding Equity Awards at Fiscal Year End for further information about the vesting of stock options. All stock options were granted at an exercise price of 100% of the closing price of NextEra Energy common stock on the date of grant.

 

(4)

The amounts shown are the value of the equity-based compensation grants as of the 20162019 grant (or remeasurement) date under applicable accounting rules.

 

(5)

This valuation reflects a discount of $11.67 per share for the 2016 grants because dividends are not paid on performance shares during the three-year performance period.

(6)

For Mr. Dewhurst,Pimentel, reflects the remeasurement of existing awards as required under applicable accounting rules. Represents performance share awards, performance-based restricted stock awards, NEP performance-based restricted common units and stock option awards remeasured on March 4, 20161, 2019 as required under applicable accounting guidance in connection with Mr. Dewhurst’sPimentel’s retirement meeting the conditions for continued full vesting under his performance share, and performance-based restricted stock and NEP performance-based restricted common unit award agreements and accelerated vesting under his stock option award agreements. The remeasurements do not reflect the award of additional equity.

Additional Disclosure Related to 20162019 Summary Compensation Table and 20162019 Grants of Plan-Based Awards Table

Material Terms of Performance Shares Granted to NEOs in 20162019

 

three yearthree-year performance period;

 

paid in shares of NextEra Energy common stock, based primarily on Company performance for the three-year performance period as compared to specified financial and operational objectives andwith a ±20 relative TSR relative tomodifier based on performance of the top ten power companies inby market capitalization at the S&P 500 Utilities Index,end of a3-year period, capped at 200% of target;

 

dividends are not paid or accrued during the performance period;

 

may vest in full or in part upon the occurrence of certain events, such as a change in control, death, disability or some retirements;

 

forfeited if employment terminates prior to the end of the performance period in all other instances (subject to the terms of Retention Agreements and the Severance Plan); and

 

award agreement includesnon-solicitation andnon-competition provisions.

Material Terms of Performance-Based Restricted Stock Granted to NEOs in 20162019

 

if corporate performance objective of adjusted earnings of $1.2 billion is met as of the end of the preceding year, performance-based restricted stock vestsone-third per year for three years for each year the corporate performance objective is met, beginning approximately one year from date of grant;

 

if corporate performance objective of adjusted earnings of $1.2 billion is not met in any year, performance-based restricted stock scheduled to vest in that year is forfeited;

 

dividends are paid on performance-based restricted stock as and when declared by the Company, but are subject to repayment by NEO if awards are forfeited prior to vesting;

 

NEOs have the right to vote their shares of performance-based restricted stock;

 

7269


may vest in full or in part prior to or on normal vesting date and, in some circumstances, without regard to satisfaction of performance objective, upon the occurrence of certain events, such as a change in control, death, disability or some retirements;

 

forfeited if employment terminates prior to vesting in all other instances (subject to terms of Retention Agreements and the Severance Plan); and

 

award agreement includesnon-solicitation andnon-competition provisions.

Material Terms of Performance-Based Restricted NEP Common Units Granted to NEOs in 2019

if the NEP performance objective of adjusted EBITDA of $400 million is met as of the end of the preceding year, performance-based restricted NEP common units vestone-third per year for three years for each year the NEP performance objective is met, beginning approximately one year from date of grant;

if the NEP performance objective of adjusted EBTIDA of $400 million is not met in any year, performance-based restricted NEP common units scheduled to vest in that year are forfeited;

distributions are paid on performance-based restricted NEP common units as and when declared by NEP, but are subject to repayment by NEO if awards are forfeited prior to vesting;

NEOs have the right to vote their performance-based restricted NEP common units;

may vest in full or in part prior to or on normal vesting date and, in some circumstances, without regard to satisfaction of performance objective, upon the occurrence of certain events, such as a change in control, death, disability or some retirements;

forfeited if employment terminates prior to vesting in all other instances (subject to terms of Retention Agreements and the Severance Plan); and

award agreement includesnon-solicitation andnon-competition provisions.

Material Terms of Stock Options Granted to NEOs in 20162019

 

vest and become exercisableone-third per year for three years, beginning approximately one year from date of grant;

 

exercise price equal to closing price of NextEra Energy common stock on date of grant (February 12, 2016)14, 2019);

 

generally expire ten years from date of grant;

 

may vest in full or in part prior to normal vesting date upon the occurrence of some events, such as a change in control, death, disability or some retirements;

 

forfeited if employment terminated prior to vesting in all other instances (subject to terms of Retention Agreements and the Severance Plan); and

 

award agreement includesnon-solicitation andnon-competition provisions.

Determination of Amount Payable Under Annual Incentive Plan to NEOs

SeeCompensation Discussion & Analysis for a description of the criteria used to determine the amount payable to each NEO under the Annual Incentive Plan (Non-Equity(Non-Equity Incentive Plan Compensation).

70


Salary and Bonus as a Proportion of 20162019 Total Compensation

No discretionary bonuses were paid to NEOs in 2016.2019. The salaries, as set forth in column (c) ofTable 1a: 20162019 Summary Compensation Table, of each of the NEOs, excluding Mr. Pimentel who retired in March 2019, as a proportion of 20162019 total compensation were as follows:

Mr. Robo—8%

Mr. Ketchum—22%Mrs. Kujawa—20%

Mr. Pimentel—Ketchum—20%

Mr. Silagy—19%

Mr. Nazar—20%

Mr. Silagy—21%

Mr. Dewhurst—16%Sieving—26%

These proportions are consistent with the Company’s philosophy of paying NEOs a higher percentage of performance-based compensation and a lower percentage of fixed compensation.

73


Table 3: 20162019 Outstanding Equity Awards at Fiscal Year End

The following table provides information about equity incentive awards granted to the NEOs in 20162019 and in prior years. It is important to keep in mind the following when reviewing the table:

With respect to Option Awards, the options listed in column (b), “Number of Securities Underlying Unexercised Options (#) Exercisable,” are fully vested and exercisable as of December 31, 2016 by the NEO. If the NEO had exercised all or a part of these options in 2016, the value realized upon exercise would be listed inTable 4: 2016 Option Exercises and Stock Vested. The Compensation Committee deems the value of unexercised fully-vested options to be a current asset of the NEO and attributable to compensation earned in prior years, and does not consider this amount, or the current value of unvested options (which are listed in column (c)), when making compensation determinations.

 

The number of shares listed in column (i), “Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested,” includes both performance shares, at maximum payout level (in accordance with applicable SEC rules), prior to the expiration of the performance period, and performance-based restricted stock and NEP common units prior to the satisfaction of the performance and time criteria required for vesting. The number of shares listed in column (g), “Number of Shares or Units of Stock That Have Not Vested,” includes a deferred retirement award forissued to Mr. Robo.Robo in 2012 in connection with his initial appointment as CEO.

 

As required by SEC rules, the amounts listed in column (j), “Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested,” represent the value of performance-based restricted stock and NEP common units and performance share awards at maximum payout levels. These amounts were not realized by the NEOs during 2016,2019, and the value of awards which vest at a later date is likely to be different from the amount listed, based on, among other factors, the performance of the Company and the price of the Company’s common stock.

 

7471


Table 3: 20162019 Outstanding Equity Awards at Fiscal Year End

 

   Option Awards  Stock Awards 

Name

(a)

 Number of
Securities
Underlying
Unexercised
Options(#)
Exercisable(1)
(b)
  Number of
Securities
Underlying
Unexercised
Options(#)
Unexer-
cisable(1)
(c)
  Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options(#)
(d)
  Option
Exercise
Price($)
(e)
  Option
Expiration
Date
(f)
  Number of
Shares or
Units of
Stock That
Have Not
Vested(2)
(#)
(g)
  Market
Value of
Shares or
Units of
Stock
That
Have Not
Vested($)(3)
(h)
  Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares,
Units or
Other
Rights That
Have Not
Vested(#)(4)
(i)
  

Equity
Incentive

Plan Awards:

Market or
Payout
Value of
Unearned
Shares,
Units or
Other Rights
That Have
Not
Vested($)(3)
(j)

 

James L. Robo

  52,320   0   0   64.69   2/15/2018      
  81,489   0   0   50.91   2/13/2019      
  111,864   0   0   45.57   2/12/2020      
  89,074   0   0   54.59   2/18/2021      
  101,937   0   0   60.22   2/17/2022      
  82,931   0   0   72.50   2/15/2023      
  39,281   19,641   0   93.27   2/14/2024      
  26,248   52,496   0   103.62   2/13/2025      
  0   101,848   0   111.67   2/12/2026      
                       44,380  $5,301,635   254,195(5)  $30,366,135(5) 

John W. Ketchum

  0   18,767   0   111.67   2/12/2026      
                            26,678(6)  $3,186,954(6) 

Armando Pimentel, Jr.

  42,372   0   0   45.57   2/12/2020      
  35,347   0   0   54.59   2/18/2021      
  42,008   0   0   60.22   2/17/2022      
  34,620   0   0   72.50   2/15/2023      
  15,193   7,597   0   93.27   2/14/2024      
  8,285   16,568   0   103.62   2/13/2025      
  0   36,285   0   111.67   2/12/2026      
                            52,103(7)  $6,224,224(7) 

Manoochehr K. Nazar

  13,890   0   0   50.91   2/13/2019      
  19,925   0   0   45.57   2/12/2020      
  15,790   0   0   54.59   2/18/2021      
  18,076   0   0   60.22   2/17/2022      
  38,149   0   0   72.50   2/15/2023      
  16,421   8,211   0   93.27   2/14/2024      
  8,784   17,566   0   103.62   2/13/2025      
  0   32,860   0   111.67   2/12/2026      
                             50,998(8)  $6,092,221(8) 

Eric E. Silagy

  21,216   0   0   60.22   2/17/2022      
  15,620   0   0   72.50   2/15/2023      
  7,756   3,878   0   93.27   2/14/2024      
  5,146   10,294   0   103.62   2/13/2025      
  0   26,698   0   111.67   2/12/2026      
                            35,490(9)  $4,239,635(9) 

Moray P. Dewhurst

  6,898   0   0   64.69   2/15/2018      
  59,575   0   0   54.59   2/18/2021      
  68,840   0   0   60.22   2/17/2022      
  49,482   0   0   72.50   2/15/2023      
  31,648   0   0   93.27   2/14/2024      
  34,185   0   0   103.62   2/13/2025      
  12,720   0   0   111.67   2/12/2026      
                            50,428(10)  $6,024,129(10) 

   

Option Awards

 Stock Awards 
          

Name

(a)

 Number of
Securities
Underlying
Unexercised
Options(#)
Exercisable(1)
(b)
 Number of
Securities
Underlying
Unexercised
Options(#)
Unexer-
cisable(1)
(c)
  Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options(#)
(d)
  Option
Exercise
Price($)
(e)
  Option
Expiration
Date
(f)
  Number of
Shares or
Units of
Stock That
Have Not
Vested(2)
(#)
(g)
   Market
Value of
Shares or
Units of
Stock
That
Have Not
Vested($)(3)
(h)
  Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares,
Units or
Other
Rights That
Have Not
Vested(#)(4)
(i)
  

Equity
Incentive

Plan Awards:

Market or
Payout
Value of
Unearned
Shares,
Units or
Other Rights
That Have
Not
Vested($)(3)
(j)

 
          

James L. Robo

  101,937     0   0         60.22   2/17/2022       
  82,931   0   0         72.50   2/15/2023       
  58,922   0   0         93.27   2/14/2024       
  78,744   0   0         103.62   2/13/2025       
  101,848   0   0         111.67   2/12/2026       
  122,641   61,321   0         126.86   2/17/2027       
  48,477   96,952   0         154.43   2/15/2028       
  0   141,250   0         182.61   2/14/2029       
          
                       23,964     $5,803,122   222,402(5)  $48,021,476(5) 
          

Rebecca J. Kujawa

           
           
          
   0   14,030   0         182.61   2/14/2029       
                             17,647(6)  $3,785,788(6) 
          

John W. Ketchum

  18,767   0   0         111.67   2/12/2026       
          
   16,357   8,178   0         126.86   2/17/2027       
          
   7,564   15,128   0         154.43   2/15/2028       
          
   0   26,610   0         182.61   2/14/2029       
          
                              47,406(7)  $10,199,128(7) 
          

Eric E. Silagy

  15,620   0   0         72.50   2/15/2023       
          
   11,634   0   0         93.27   2/14/2024       
          
   15,440   0   0         103.62   2/13/2025       
          
   26,698   0   0         111.67   2/12/2026       
          
   22,405   11,202   0         126.86   2/17/2027       
          
   10,033   20,066   0         154.43   2/15/2028       
          
   0   34,385   0         182.61   2/14/2029       
          
                              55,371(8)  $13,408,641(8) 
          

Manoochehr K. Nazar

  15,790   0   0         54.59   2/18/2021       
  18,076   0   0         60.22   2/17/2022       
  38,149   0   0         72.50   2/15/2023       
  24,632   0   0         93.27   2/14/2024       
  26,350   0   0         103.62   2/13/2025       
  32,860   0   0         111.67   2/12/2026       
  20,996   10,498   0         126.86   2/17/2027       
  8,093   16,184   0         154.43   2/15/2028       
  0   23,005   0         182.61   2/14/2029       
          
                              40,887(9)  $9,901,196(9) 
          

Charles E. Sieving

  21,910   0   0         111.67   2/12/2026       
          
   14,339   7,170   0         126.86   2/17/2027       
          
   5,633   11,264   0         154.43   2/15/2028       
          
   0   16,775   0         182.61   2/14/2029       
          
                              32,497(10)  $7,010,993(10) 
          

Armando Pimentel, Jr.

  42,008   0   0         60.22   2/17/2022       
  34,620   0   0         72.50   2/15/2023       
  22,790   0   0         93.27   2/14/2024       
  24,853   0   0         103.62   2/13/2025       
  36,285   0   0         111.67   2/12/2026       
  26,244   13,122   0         126.86   2/17/2027       
  10,789   21,576   0         154.43   2/15/2028       
  0   5,210   0         182.61   2/14/2029       
          
                              36,445(11)  $8,018,777(11) 

 

7572


(1)

All stock options arenon-qualified. All options listed as exercisable at December 31, 20162019 were fully vested at that date. Options listed as unexercisable at December 31, 20162019 vest as follows:

 

Name Grant Date     Vest Date   No. Options
 

James L. Robo

  2/12/201614/2019       2/15/20172020     33,95047,084     
   2/15/20182021     33,94947,083     
   2/15/20192022     33,94947,083     
  2/13/201515/2018       2/15/20172020     26,24848,476    
   2/15/20182021     26,24848,476    
  2/14/201417/2017       2/15/20172020     19,64161,321    
 

John W. KetchumRebecca J. Kujawa

  2/12/201614/2019       2/15/20172020     6,2554,676    
 
   2/15/20182021     6,2564,677    
 
      2/15/20192022     6,2564,677    
 

Armando Pimentel, Jr.John W. Ketchum

  2/12/201614/2019       2/15/20172020     12,0958,870     
   2/15/20182021     12,0958,870     
   2/15/20192022     12,0958,870     
  2/13/201515/2018       2/15/20172020     8,2847,564    
2/15/2021  7,564    
2/17/2017    2/15/2020  8,178    

Eric E. Silagy

2/14/2019    2/15/2020  11,461     
   2/15/20182021     8,284
2/14/20142/15/20177,597

Manoochehr K. Nazar

2/12/20162/15/201710,95411,462     
   2/15/20182022     10,95311,462    
2/15/2018    2/15/2020  10,033    
2/15/2021  10,033    
2/17/2017    2/15/2020  11,202    

Manoochehr K. Nazar

2/14/2019    2/15/2020  7,669     
   2/15/20192021     10,953
2/13/20152/15/20178,7837,668     
   2/15/20182022     8,7837,668     
  2/14/201415/2018       2/15/20172020     8,2118,092    

Eric E. Silagy

  2/12/201615/2021  8,092    
2/17/2017       2/15/20172020     8,90010,498    

Charles E. Sieving

2/14/2019    2/15/2020  5,591     
   2/15/20182021     8,8995,592     
   2/15/20192022     8,8995,592     
  
2/13/201515/2018       2/15/20172020     5,1475,632    
2/15/2021  5,632    
2/17/2017    2/15/2020  7,170    

Armando Pimentel, Jr.

2/14/2019    2/15/2020  1,736     
   2/15/20182021     5,1471,737    
2/15/2022  1,737     
  2/14/201415/2018       2/15/20172020     3,87810,788    
2/15/2021  10,788    
2/17/2017    2/15/2020  13,122     

 

(2)

Mr. Robo was granted 47,893 shares in 2006 and Mr. Dewhurst was granted 25,219 shares in 2009 as a deferred retirement awards.award. Of such grants, 50% of Mr. Robo’s shares (28,181 shares, including reinvested dividends) vested on 3/15/2011, and the remainder vested on 3/15/2016. Of Mr. Dewhurst’s shares, 50% (14,170 shares, including reinvested dividends) vested on 6/15/2012, and the remainder vested on 3/4/2016. Mr. Robo was also granted 38,231 shares in 2012 as a deferred retirement award. Of those shares, 50% will vest(22,510 shares, including reinvested dividends) vested on 7/1/2017 and the remainder will vest on 7/1/2022. Receipt of the shares will continue to be deferred following vesting in most circumstances. Shares representing the Company’s obligation to Mr. Robo related to the award granted in 2006 are held in a grantor (rabbi) trust. Dividends are reinvested. In 2016,2019, the trustee of the grantor trust acquired 1,9641,721 shares (100% of which are vested) in respect of Mr. Robo’s 2006 award. In addition, in 2016, 1,2662019, 1,111 deferred shares were added with respect to Mr. Robo’s 2012 award and 931 deferred shares (100% of which were vested as of 12/31/2016) were added with respect to Mr. Dewhurst’s award upon the reinvestment of dividend equivalents.

 

(3)

Market value of the unvested deferred retirement awards, performance shares and performance-based restricted stock is based on the closing price of NextEra Energy common stock on December 30, 201631, 2019 of $119.46.$242.16. Market value of the unvested performance-based restricted NEP common units is based on the closing price of NEP common units on December 31, 2019 of $52.65.

 

(4)

Performance shares generally vest on the last day of the applicable performance period, with payouts determined by the Compensation Committee at its first regular meeting after the end of the year. Because the end of the performance period for the performance shares granted to each of the NEOs in 20142017 was December 31, 2016,2019, these performance shares are not included inTable 3: 20162019 Outstanding Equity Awards at Fiscal Year End and are included inTable 4: 20162019 Option Exercises and Stock Vested under columns (d) and (e), “Stock Awards—Number of Shares Acquired on Vesting” and “Stock Awards—Value Realized on Vesting,” and discussed in footnote (2) to that table.

 

7673


(5)

Mr. Robo’s outstanding performance shares at maximum payout level totaled 212,220222,402 shares with a market value on December 31, 20162019 of $25,351,801.$48,021,476. Of such shares, 52,71048,784 performance shares at target were granted on February 13, 201515, 2018 (performance period beginning 1/1/20152018 and ending 12/31/2017)2020) and 53,40044,132 performance shares at target were granted on February 12, 201614, 2019 (performance period beginning 1/1/20162019 and ending 12/31/2018)2021). The amount shown also includes 41,9755,778 shares of performance-based restricted stock with a market value of $5,014,334$1,399,200 which vest, subject to the satisfaction of applicable performance criteria, as follows:

 

Award Type Grant Date  Vest Date  No. Shares 

performance-based restricted stock

 

2/12/201614/2019    

 

2/15/2020  

 2/15/2017

618    

7,172

  

2/15/20182021  

 

619    

7,173

     

2/15/20192022  

 

619    

7,173

performance-based restricted stock

 

2/13/201515/2018    

 

2/15/2020  

 2/15/2017

680    

7,165

     

2/15/20182021  

 

680    

7,165

performance-based restricted stock

 

2/14/201417/2017    

2/15/2020  

2,562    

The amount shown also includes 30,792 shares of performance-based restricted NEP common units with a market value of $1,621,199 which vest, subject to the satisfaction of applicable performance criteria, as follows:

Award TypeGrant Date  Vest DateNo. Shares

performance-based restricted NEP common units

2/19/2019    

2/15/2020  

6,190    

2/15/2021  

6,191    

   

2/15/20172022  

6,191    

performance-based restricted NEP common units

2/20/2018    

2/15/2020  

6,110    

   6,127

2/15/2021  

 

6,110    

 

(6)

Mr. Ketchum’sMrs. Kujawa’s outstanding performance shares at maximum payout level totaled 20,27617,647 shares with a market value on December 31, 20162019 of $2,422,171.$3,785,788. Of such shares, 4,525822 performance shares at target were granted on February 13, 201515, 2018 (performance period beginning 1/1/20152018 and ending 12/31/2017)2020) and 5,6135,057 performance shares at target were granted on February 12, 201614, 2019 (performance period beginning 1/1/20162019 and ending 12/31/2018)2021). The amount shown also includes 6,4023,316 shares of performance-based restricted stock with a market value of $764,783$803,003 which vest, subject to the satisfaction of applicable performance criteria, as follows:

 

Award Type Grant Date  Vest Date  No. Shares 

performance-based restricted stock

 

2/12/201614/2019    

 

2/15/2020  

 2/15/2017

332    

1,038

  

2/15/20182021  

 

333    

1,039

     

2/15/2022  

 2/15/2019

333    

1,039

performance-based restricted stock

 

2/15/2018    

2/15/2020  

213    

2/15/2021  

213    

 2/13/201515/2018       2/15/20172021     1,3671,618     

performance-based restricted stock

2/17/2017    

2/15/2020  

274    

The amount shown also includes 2,573 shares of performance-based restricted NEP common units with a market value of $135,468 which vest, subject to the satisfaction of applicable performance criteria, as follows:

Award TypeGrant Date  Vest DateNo. Shares

performance-based restricted NEP common units

2/19/2019    

2/15/2020  

769    

2/15/2021  

768    

     

2/15/2022  

 

768    

performance-based restricted NEP common units

2/20/2018    

2/15/20182020  

134    

   1,367

performance-based restricted stock

2/15/2021  

 

2/14/2014

134    

2/15/2017552

 

74


(7)

Mr. Pimentel’sKetchum’s outstanding performance shares at maximum payout level totaled 40,66647,406 shares with a market value on December 31, 20162019 of $4,857,960.$10,199,128. Of such shares, 9,4848,784 performance shares at target were granted on February 13, 201515, 2018 (performance period beginning 1/1/20152018 and ending 12/31/2017)2020) and 10,8499,592 performance shares at target were granted on February 12, 201614, 2019 (performance period beginning 1/1/20162019 and ending 12/31/2018)2021). The amount shown also includes 11,4373,896 shares of performance-based restricted stock with a market value of $1,366,264$943,455 which vest, subject to the satisfaction of applicable performance criteria, as follows:

 

Award Type Grant Date  Vest Date  No. Shares 

performance-based restricted stock

 

2/12/201614/2019    

 

2/15/2020  

 2/15/2017

632    

2,007

  

2/15/20182021  

 

631    

2,008

     

2/15/2022  

 2/15/2019

631    

2,008

performance-based restricted stock

 

2/13/201515/2018    

2/15/2020  

574    

2/15/2021  

574    

performance-based restricted stock

2/17/2017    

2/15/2020  

854    

The amount shown also includes 6,758 shares of performance-based restricted NEP common units with a market value of $355,809 which vest, subject to the satisfaction of applicable performance criteria, as follows:

   
2/15/2017Award TypeGrant Date    1,776Vest Date No. Shares

performance-based restricted NEP common units

2/19/2019    

2/15/2020  

1,458    

2/15/2021  

1,458    

     

2/15/2022  

 

1,458    

performance-based restricted NEP common units

2/20/2018    

2/15/20182020  

1,192    

   1,776

performance-based restricted stock

2/15/2021  

 

2/14/2014

1,192    

2/15/20171,862

 

(8)

Mr. Nazar’sSilagy’s outstanding performance shares at maximum payout level totaled 39,76455,371 shares with a market value on December 31, 20162019 of $4,750,207.$13,408,641. Of such shares, 10,05811,650 performance shares at target were granted on February 13, 201515, 2018 (performance period beginning 1/1/20152018 and ending 12/31/2017)2020) and 9,82412,395 performance shares at target were granted on February 12, 201614, 2019 (performance period beginning 1/1/20162019 and ending 12/31/2018)2021). The amount shown also includes 11,2347,281 shares of performance-based restricted stock with a market value of $1,342,014$1,763,167 which vest, subject to the satisfaction of applicable performance criteria, as follows:

 

Award Type Grant Date  Vest Date  No. Shares 

performance-based restricted stock

 

2/12/201614/2019    

 

2/15/2020  

 2/15/2017

1,255    

1,818

  

2/15/20182021  

 

1,255    

1,818

     

2/15/2022  

 2/15/2019

1,255    

1,818

performance-based restricted stock

 

2/13/201515/2018    

 

2/15/2020  

 2/15/2017

1,173    

1,884

     

2/15/2021  

 2/15/2018

1,173    

1,884

performance-based restricted stock

 

2/14/201417/2017    

 

2/15/2020  

 2/15/2017

1,170    

2,012

 

77


(9)

Mr. Silagy’sNazar’s outstanding performance shares at maximum payout level totaled 27,75240,887 shares with a market value on December 31, 20162019 of $3,315,254.$9,901,196. Of such shares, 5,8929,396 performance shares at target were granted on February 13, 201515, 2018 (performance period beginning 1/1/20152018 and ending 12/31/2017)2020) and 7,9848,294 performance shares at target were granted on February 12, 201614, 2019 (performance period beginning 1/1/20162019 and ending 12/31/2018)2021). The amount shown also includes 7,7385,507 shares of performance-based restricted stock with a market value of $924,381$1,333,575 which vest, subject to the satisfaction of applicable performance criteria, as follows:

 

Award Type Grant Date  Vest Date  No. Shares 

performance-based restricted stock

 

2/12/201614/2019    

 

2/15/2020  

 2/15/2017

839    

1,478

  

2/15/20182021  

 

840    

1,477

     

2/15/2022  

 2/15/2019

840    

1,477

performance-based restricted stock

 

2/13/201515/2018    

 

2/15/2020  

 2/15/2017

946    

1,178

     

2/15/2021  

 2/15/2018

946    

1,178

performance-based restricted stock

 

2/14/201417/2017    

 

2/15/2020  

 2/15/2017

1,096    

950

 

75


(10)

Mr. Dewhurst’sSieving’s outstanding performance shares at maximum payout level totaled 33,69832,497 shares with a market value on December 31, 20162019 of $4,025,563.$7,010,993. Of such shares, 13,0466,538 performance shares at target were granted on February 13, 201515, 2018 (performance period beginning 1/1/20152018 and ending 12/31/2017)2020) and 3,8036,046 performance shares at target were granted on February 12, 201614, 2019 (performance period beginning 1/1/20162019 and ending 12/31/2018)2021). The amount shown also includes 16,7302,799 shares of performance-based restricted stock with a market value of $1,998,566$677,806 which vest, subject to the satisfaction of applicable performance criteria, as follows:

 

Award Type Grant Date  Vest Date  No. Shares 

performance-based restricted stock

2/14/2019    

2/15/2020  

398    

2/15/2021  

398    

2/15/2022  

398    

performance-based restricted stock

2/15/2018    

2/15/2020  

428    

2/15/2021  

428    

performance-based restricted stock

2/17/2017    

2/15/2020  

749    

The amount shown also includes 4,530 shares of performance-based restricted NEP common units with a market value of $238,505 which vest, subject to the satisfaction of applicable performance criteria, as follows:

Award TypeGrant Date  Vest DateNo. Shares

performance-based restricted NEP common units

2/19/2019    

2/15/2020  

919    

2/15/2021  

919    

2/15/2022  

918    

performance-based restricted NEP common units

2/20/2018    

2/15/2020  

887    

2/15/2021  

887    

(11)

Mr. Pimentel’s outstanding performance shares at maximum payout level totaled 36,445 shares with a market value on December 31, 2019 of $8,018,777. Of such shares, 12,528 performance shares at target were granted on February 15, 2018 (performance period beginning 1/1/2018 and ending 12/31/2020) and 1,877 performance shares were granted on February 14, 2019 (performance period beginning 1/1/2019 and ending 12/31/2021). The amount shown also includes 3,378 shares of performance-based restricted stock with a market value of $818,016 which vest, subject to the satisfaction of applicable performance criteria, as follows:

Award TypeGrant Date  Vest DateNo. Shares

performance-based restricted stock

2/14/2019    

2/15/2020  

124    

2/15/2021  

123    

2/15/2022  

123    

performance-based restricted stock

  2/12/201615/2018       2/15/20172020     703
2/15/2018704819     
      2/15/20192021     704819    
 

performance-based restricted stock

  2/13/201517/2017       2/15/20172020     2,4431,370    

The amount shown also includes 4,257 shares of performance-based restricted NEP common units with a market value of $224,131 which vest, subject to the satisfaction of applicable performance criteria, as follows:

Award TypeGrant Date  Vest DateNo. Shares

performance-based restricted NEP common units

2/19/2019    2/15/2019  285    
2/15/2020  286     
      2/15/20182021     2,443286    
 

performance-based restricted stockNEP common units

  2/14/201420/2018       2/15/20172020     9,7331,700    
2/15/2021  1,700     

76


Table 4: 20162019 Option Exercises and Stock Vested

The following table provides information about the NEOs’ stock awards which vested in 2016.2019. It is important to keep in mind the following when reviewing the table:

 

The “Number of Shares Acquired on Vesting” (column (d)) represents performance shares granted in 20142017 for the performance period which ended in 2016,2019, as well as performance-based restricted stock vesting in 20162019 from grants made in prior years. For Messrs. Robo and Dewhurst, these shares also represent the vesting of 50% of deferred retirement awards granted in 2006 and 2009, respectively. The Compensation Committee looks at the value of these grants as of the date of grant, rather than as of the date of vesting, when making compensation determinations.

 

The “Value Realized on Vesting” (column (e)) represents the aggregate payout value of the vested performance shares and vested performance-based restricted stock and, for Messrs. Robo and Dewhurst, vested shares underlying the deferred retirement awards described above.stock.

 

   Option Awards  Stock Awards 
Name(a) Number of Shares
Acquired on
Exercise (#)
(b)
  Value Realized
on Exercise ($)
(c)
  Number of Shares
Acquired on
Vesting(2)(#)
(d)
  Value Realized
on Vesting(2)($)
(e)
 

James L. Robo

  43,773  $2,548,617(1)   133,581  $16,260,882 

John W. Ketchum

  0   0   5,896   708,351 

Armando Pimentel, Jr.

  0   0   23,491   2,890,462 

Manoochehr K. Nazar

  0   0   25,401   3,125,383 

Eric E. Silagy

  0   0   12,127   1,490,644 

Moray P. Dewhurst

  161,079   11,493,161(1)   55,676   6,629,932 

   Option Awards  Stock Awards 
     
Name(a) Number of Shares
Acquired on
Exercise (#)
(b)
  Value Realized
on Exercise ($)
(c)
  Number of Shares
Acquired on
Vesting(2)(#)
(d)
  Value Realized
on Vesting(2)($)
(e)
 
     

James L. Robo

 

 

200,938

 

 

 

$29,788,112

(1) 

 

 

127,843

 

 

 

$32,842,095

 

     

Rebecca J. Kujawa

 

 

0

 

 

 

0

 

 

 

2,583

 

 

 

610,073

 

     

John W. Ketchum

 

 

0

 

 

 

0

 

 

 

20,788

 

 

 

5,223,228

 

     

Eric E. Silagy

 

 

4,216

 

 

 

696,568

(1) 

 

 

27,285

 

 

 

7,167,028

 

     

Manoochehr K. Nazar

 

 

19,925

 

 

 

2,875,178

(1) 

 

 

25,849

 

 

 

6,767,795

 

     

Charles E. Sieving

 

 

16,446

 

 

 

1,586,389

(1) 

 

 

18,293

 

 

 

4,584,414

 

     

Armando Pimentel, Jr.

 

 

0

 

 

 

0

 

 

 

33,383

 

 

 

8,412,528

 

 

78


(1)

The aggregate dollar amount realized upon the exercise of stock options is calculated based on the difference between the market price of the Company’s common stock upon exercise and the exercise price of the stock options.

 

(2)

Includes: for Mr. Robo, 20,18216,523 shares of performance-based restricted stock ($2,253,724)2,176,775) and 79,770111,320 performance shares ($10,119,622); for Mr. Ketchum, 2,608 shares of performance-based restricted stock ($291,235) and 3,288 performance shares ($417,116); for Mr. Pimentel, 5,899 shares of performance-based restricted stock ($658,741) and 17,592 performance shares ($2,231,721); for Mr. Nazar, 6,385 shares of performance-based restricted stock ($713,013) and 19,016 performance shares ($2,412,370); for Mr. Silagy, 3,146 shares of performance-based restricted stock ($351,314) and 8,981 performance shares ($1,139,330); and for Mr. Dewhurst, 15,406 shares of performance-based restricted stock ($1,720,388) and 24,430 performance shares ($3,099,190). Also includes: for Mr. Robo, 33,629 shares of a deferred retirement award ($3,887,536) and for Mr. Dewhurst, 15,840 shares of a deferred retirement award ($1,810,354);30,665,320), the receipt of such shares continueswhich Mr. Robo elected to be deferreddefer, under the Deferred Compensation Plan, until January 1stthe first day of the first calendar year following the calendar year in which the NEO experiences a termination of service or, if later, six months after a termination of service.service (this deferral is reported inTable 6: Nonqualified Deferred Compensation); for Mrs. Kujawa, 904 shares of performance-based restricted stock ($147,559) and 1,679 performance shares ($462,514); Mr. Ketchum, 3,660 shares of performance-based restricted stock ($504,978) and 17,128 performance shares ($4,718,250); for Mr. Silagy, 3,819 shares of performance-based restricted stock ($702,849) and 23,466 performance shares ($6,464,179); for Mr. Nazar, 3,859 shares of performance-based restricted stock ($710,210) and 21,990 performance shares ($6,057,585); for Mr. Sieving, 3,275 shares of performance-based restricted stock ($447,406) and 15,018 performance shares ($4,137,008); and for Mr. Pimentel, 5,897 shares of performance-based restricted stock ($844,960) and 27,486 performance shares ($7,571,568).

77


Table 5: Pension Benefits

The table and description below provide information about the NEOs’ pension benefits. It is important to keep in mind that the “Present Value of Accumulated Benefit” (column (d)) listed for the SERP includes the present value of such benefits in the defined benefit portion of the SERP only, and that disclosure of information related to the defined contribution portion of the SERP can be found in the next table,Table 6: Nonqualified Deferred Compensation.

 

  

Name

(a)

 Plan Name
(b)
  Number of
Years Credited
Service (#)
(c)
  Present Value
of Accumulated
Benefit ($)
(d)
  Payments
During Last
Fiscal Year ($)
(e)
  Plan Name
(b)
  Number of
Years Credited
Service (#)
(c)
  Present Value
of Accumulated
Benefit ($)
(d)
  Payments
During Last
Fiscal Year ($)
(e)
 

James L. Robo(2)

  NextEra Energy, Inc. Employee Pension Plan   15  $251,449  $0  

 

 

 

NextEra Energy, Inc. Employee Pension Plan

 

 

 

 

 

 

18        

 

 

 

 

    $

 

332,790

 

 

 

 

 

 

$              0        

 

 

  SERP(1)   15   3,627,108   0  

 

 

 

SERP(1)

 

 

 

 

 

 

18        

 

 

 

 

 

 

6,061,641

 

 

 

 

 

 

0        

 

 

John W. Ketchum (2)

  NextEra Energy, Inc. Employee Pension Plan   14   222,154   0 

Rebecca J. Kujawa(2)

 

 

 

 

NextEra Energy, Inc. Employee Pension Plan

 

 

 

 

 

 

13        

 

 

 

 

 

 

191,189

 

 

 

 

 

 

0        

 

 

  SERP(1)   14   267,353   0  

 

 

 

SERP(1)

 

 

 

 

 

 

13        

 

 

 

 

 

 

146,227

 

 

 

 

 

 

0        

 

 

Armando Pimentel, Jr.(2)

  NextEra Energy, Inc. Employee Pension Plan   9   134,696   0 

John W. Ketchum(2)

 

 

 

 

NextEra Energy, Inc. Employee Pension Plan

 

 

 

 

 

 

17        

 

 

 

 

 

 

299,838

 

 

 

 

 

 

0        

 

 

 

 

 

 

SERP(1)

 

 

 

 

 

 

17        

 

 

 

 

 

 

880,072

 

 

 

 

 

 

0        

 

 

Eric E. Silagy(2)

 

 

 

 

NextEra Energy, Inc. Employee Pension Plan

 

 

 

 

 

 

17        

 

 

 

 

 

 

305,869

 

 

 

 

 

 

0        

 

 

  SERP(1)   9   1,932,860   0  

 

 

 

SERP(1)

 

 

 

 

 

 

17        

 

 

 

 

 

 

1,669,089

 

 

 

 

 

 

0        

 

 

Manoochehr K. Nazar(2)

  NextEra Energy, Inc. Employee Pension Plan   9   140,842   0  

 

 

 

NextEra Energy, Inc. Employee Pension Plan

 

 

 

 

 

 

12        

 

 

 

 

 

 

208,373

 

 

 

 

 

 

0        

 

 

  SERP(1)   9   2,010,986   0  

 

 

 

SERP(1)

 

 

 

 

 

 

12        

 

 

 

 

 

 

3,013,833

 

 

 

 

 

 

0        

 

 

Eric E. Silagy(2)

  NextEra Energy, Inc. Employee Pension Plan   14   227,516   0 

Charles E. Sieving(2)

 

 

 

 

NextEra Energy, Inc. Employee Pension Plan

 

 

 

 

 

 

11        

 

 

 

 

 

 

183,314

 

 

 

 

 

 

0        

 

 

  SERP(1)   14   790,093   0  

 

 

 

SERP(1)

 

 

 

 

 

 

11        

 

 

 

 

 

 

1,590,924

 

 

 

 

 

 

0        

 

 

Moray P. Dewhurst(3)

  NextEra Energy, Inc. Employee Pension Plan   13   258,644   0 

Armando Pimentel, Jr.(3)

 

 

 

 

NextEra Energy, Inc. Employee Pension Plan

 

 

 

 

 

 

11        

 

 

 

 

 

 

201,459

 

 

 

 

 

 

0        

 

 

  SERP(1)   13   1,730,854   51,170  

 

 

 

SERP(1)

 

 

 

 

 

 

11        

 

 

 

 

 

 

0

 

 

 

 

 

 

2,821,667        

 

 

 

(1)

NextEra Energy’s nonqualified SERP provides both defined benefit and defined contribution benefits. SeeAdditional Disclosure Related to Pension Benefits Table,below. The defined benefit portion of the SERP is shown in this table, while amounts attributable to the defined contribution portion of the SERP are included inTable 1a: 20162019 Summary Compensation Table under column (i), “All Other Compensation” (amounts for which are detailed inTable 1b: 20162019 Supplemental All Other Compensation), and also are also reported inTable 6: Nonqualified Deferred Compensation under columns (c), (d) and (f).

 

(2)

For Mrs. Kujawa and Messrs. Robo, Ketchum, Pimentel,Silagy, Nazar and Silagy,Sieving, the amounts shown are their respective accrued pension benefits as of December 31, 2016,2019, which are equal to their respective cash balance account values in the tax qualified employee pension plan and in the SERP at December 31, 2016.2019. Mrs. Kujawa and Messrs. Robo, Ketchum, Pimentel,Silagy, Nazar and SilagySieving are fully vested in both plans. Each NEO is entitled to his fully vested accrued account balances upon termination of employment.

 

(3)

ForIn connection with his retirement, Mr. Dewhurst, the amounts shown are his accrued pension benefits asPimentel received a lump sum payment of December 31, 2016, which are equal to his cash balance account balance in the tax qualified employee pension plan, which is the cash balance account balance earned in the SERP subsequent to his resumption of employment with the Company in 2009, and the present value at December 31, 2016 of the $2,605 monthly single life annuity benefit that Mr. Dewhurst commenced on December 1, 2008 and the $6,636 monthly single life annuity benefit that Mr. Dewhurst commenced$2,821,667 on October 1, 2016 from2019 under the SERP. (The $2,605 monthly life annuity benefit continued upon Mr. Dewhurst’s resumption of employment in 2009.) The following assumptions were used for determining the present value as of December 31, 2016 of the two SERP annuity payments: discount rate of 3.53% and the RP-2014 annuitant mortality table adjusted backward to 2006 using MP-2014 and then adjusted from 2006 forward using Scale MP-2016 with generational improvements assumed. Mr. Dewhurst is fully vested in these benefits. As of December 31, 2016, Mr. Dewhurst had not commenced distributions from the tax-qualified employee pension plan.

79


Additional Disclosure Related to Pension Benefits Table

NextEra Energy maintains twonon-contributory defined benefit retirement plans: atax-qualified employee pension plan and anon-qualified SERP.

Employee Pension Plan

NextEra Energy’stax-qualified employee pension plan is a cash balance plan in which credits to each active, full-time employee’s account are determined as a percentage of his or her monthly covered earnings, with “basic crediting” of 4.5% until the fifth anniversary of employment and 6% thereafter. Covered earnings for each NEO are limited to base salary and do not include annual incentive compensation,long-term incentive compensation or any other compensation included inTable 1a: 20162019 Summary Compensation Table. Each employee’s cash balance account is also credited quarterly with interest at an annual rate that

78


is equal to the average yieldrates of interest paid onone-year Treasury Constant Maturities for the 12 months ending September 30month of August of the preceding calendar year.* The interest crediting rate is subject to a 3% minimum for account balances earned after 2014 and a 4% minimum for account balances earned prior to 2015 and to a 14% maximum. For 2016,2019, the interest crediting rate was 4% for account balances earned prior to 2015 and 3% for account balances earned after 2014. Benefits under the cash balance formula are not reduced for employer contributions to Social Security or other offset amounts.

Under the qualified employee pension plan, benefits are cliff-vested after three full years of service and employees may become fully vested if they are participants in the qualified plan at a time when the Company decides to transfer a portion of pension plan assets to fund retiree medical benefits. All NEOs are fully vested. All vested participants are eligible for lump sum payment of benefits following termination of employment, and certain annuity forms of payment also are also available to all employees, including the NEOs.

SERP

For the reasons described inCompensation Discussion & Analysis, NextEra Energy maintains an unfunded SERP for its executive officers, including the NEOs. The SERP’s defined benefit formula for NEOs provides two times the normal cash balance crediting rate of the qualified employee pension plan (“double basic credits”). The normal cash balance crediting rate is 4.5% of base salary prior to five years of service and 6% of base salary thereafter. Double the basic crediting rate is therefore 9% and 12%, of base salary, respectively. Benefits for all NEOs are calculated in this manner. In order to offset the benefits that Mr. Nazar forfeited from his prior employer in order to accept the Company’s offer of employment, Mr. Nazar received an opening SERP cash balance account balance of $300,000. Similarly, in order to offset the significant benefits that Mr. Pimentel forfeited from his prior employer in order to accept the Company’s offer of employment, Mr. Pimentel received an opening SERP cash balance account balance of $150,000, and an additional $150,000 on each of his first and second anniversaries with the Company.

SERP benefits are cliff-vested after five full years of service and all NEOs were fully vested as of December 31, 2016.2019. All vested participants are eligible for lump sum payment of benefits following termination of employment (subject to timing restrictions imposed by section 409A of the Code), or may elect certain annuity forms of payment.

*

As required under IRS regulations, effective Jan. 1, 2017, instead of using the average rates paid on the one-year Treasury Constant Maturities for the 12-month period ending Sept. 30 of the preceding calendar year, the Plan will use the average rates paid for the month of August of the preceding calendar year.

80


Table 6: Nonqualified Deferred Compensation

The table and description below provide information about the NEOs’ nonqualified deferred compensation. It is important to keep in mind the following when reviewing the table:

 

The amounts shown under the heading “Aggregate Earnings in Last FY” (column (d)) represent earnings in the Deferred Compensation Plan, in the defined contribution portion of the SERP and, for Messrs.Mr. Robo, and Dewhurst, on the vested portion of deferred retirement awards under the LTIP.

 

The amounts shown under the heading “Aggregate Balance at Last FYE” (column (f)) represent balances in the Deferred Compensation Plan and in the defined contribution portion of the SERP and, for Messrs.Mr. Robo, and Dewhurst, the vested balance of deferred retirement awards.

 

Name(a) Executive
Contributions
in Last
FY(1)($)
(b)
  Registrant
Contributions
in Last
FY(2)($)
(c)
  Aggregate
Earnings
in Last
FY(3)($)
(d)
  Aggregate
Withdrawals/
Distributions(4)($)
(e)
  Aggregate
Balance at
Last
FYE(5)($)
(f)
 

James L. Robo

 $  3,887,536  $  204,689  $1,291,791  $             0  $  11,138,346 

John W. Ketchum

  0   42,933   30,669   0   219,998 

Armando Pimentel, Jr.

  0   76,878   129,988   0   878,320 

Manoochehr K. Nazar

  1,390,380   79,225   421,750   0   4,451,498 

Eric E. Silagy

  0   68,490   74,830   0   517,696 

Moray P. Dewhurst

  1,810,354   53,525   544,256   648,014   4,543,485 

79


      

Name(a)

 

 

Executive
Contributions
in Last
FY(1)($)
(b)

 

  

Registrant
Contributions
in Last
FY(2)($)
(c)

 

  

Aggregate
Earnings
in Last
FY(3)($)
(d)

 

  

Aggregate
Withdrawals/
Distributions(4)($)
(e)

 

  

Aggregate
Balance at
Last
FYE(5)($)
(f)

 

 
      

 

James L. Robo

 

 

 

$

 

 

30,665,320

 

 

 

 

 

 

$

 

 

  268,320

 

 

 

 

 

 

$

 

 

  9,202,600

 

 

 

 

 

 

$

 

 

              0

 

 

 

 

 

 

$

 

 

  61,868,509

 

 

 

 

      

 

Rebecca J. Kujawa

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

27,476

 

 

 

 

 

 

 

 

 

30,648

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

117,195

 

 

 

 

      

John W. Ketchum

 

 

  

 

0

 

 

 

  

 

84,992

 

 

 

  

 

220,194

 

 

 

  

 

0

 

 

 

  

 

785,233

 

 

 

      

 

Eric E. Silagy

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

110,826

 

 

 

 

 

 

 

 

 

444,880

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

1,555,668

 

 

 

 

      

 

Manoochehr K. Nazar

 

 

 

 

 

 

1,695,750

 

 

 

 

 

 

 

 

 

97,204

 

 

 

 

 

 

 

 

 

905,454

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

12,404,901

 

 

 

 

      

 

Charles E. Sieving

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

83,562

 

 

 

 

 

 

 

 

 

416,896

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

1,447,626

 

 

 

 

      

 

Armando Pimentel, Jr.

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

78,835

 

 

 

 

 

 

 

 

 

564,212

 

 

 

 

 

 

 

 

 

2,195,115

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

(1)

The Deferred Compensation Plan permits deferral of salary (up to 100%), annual incentive (up to 100%), and performance shares (up to 100%). Mr. Nazar elected to defer 50% of his base salary and 90% of his annual incentive paid in 2016.2019. For Messrs.Mr. Robo, and Dewhurst, the amount is the value of the portion of their respective deferred retirementperformance share award that vestedfor the performance period which ended in 2016,2019, the receipt of such shares continueswhich Mr. Robo elected to be deferreddefer until January 1stthe first day of the first calendar year following the calendar year in which the NEO experiences a termination of service or, if later, six months after a termination of service.service (the vesting is reported inTable 4: 2019 Option Exercises and Stock Vested).

 

(2)

The SERP includes a defined contribution component which provides a match on NEOs’ base and annual incentive earnings above the IRS limit, which was $265,000$280,000 for 2016.2019. The 4.75% match is the same as the match opportunity provided to participants in the Company’s 401(k) plan. As with the 401(k) plan, crediting of matching contributions under the defined contribution component of the SERP is in the form of phantom NextEra Energy common stock. All amounts shown in this column also are also included inTable 1a: 20162019 Summary Compensation Table in column (i), “All Other Compensation” (amounts for which are detailed inTable 1b: 20162019 Supplemental All Other Compensation).

 

(3)

Earnings include the sum of each participant’s annual earnings (which includes, among other things, stock price appreciation on stock-based deferred compensation) in the Deferred Compensation Plan and in the defined contribution portion of the SERP and, for Messrs.Mr. Robo, and Dewhurst, on deferred retirement awards. For Mr. Nazar, earnings include Deferred Compensation Plan earnings or (losses) were as follows: Mr. Nazar $260,107.of $96,265. Mrs. Kujawa and Messrs. Robo, Ketchum, Pimentel, Silagy, Sieving and DewhurstPimentel have not deferred any compensation under this plan. Earnings for the defined contribution component of the SERP were as follows: Mr. Robo $437,738,$2,191,323, Mrs. Kujawa $30,648, Mr. Ketchum $30,669,$220,194, Mr. Silagy $444,880, Mr. Nazar $809,189, Mr. Sieving $416,896 and Mr. Pimentel $129,988, Mr. Nazar $161,643, Mr. Silagy $74,830 and Mr. Dewhurst $104,548.$564,212. Earnings for the deferred retirement awards for Messrs.Mr. Robo and Dewhurst were $854,053 and $439,708, respectively,$7,011,277, comprised of reinvested dividends and the increase in value of the underlying stock. None of these amounts are included inTable 1a: 20162019 Summary Compensation Tablesince no above-market interest was credited in 2016.2019.

 

(4)

In October 2016,2019, Mr. DewhurstPimentel received a lump sum distribution of $648,014$2,195,115 from the defined contribution component of the SERP.

 

(5)

Deferred Compensation Plan accounts include fully vested and earned compensation plus earnings. The Company views deferred compensation as a vehicle for retirement planning rather than as a means of providing additional compensation. As of December 31, 2016,2019, Mr. Robo had a Deferred Compensation Plan balances werebalance of $30,665,320 (of which $19,502,748 was previously reported as follows:compensation in prior Summary Compensation Tables for years prior to 2019); and Mr. Nazar $3,368,016.had a Deferred Compensation Plan balance of $9,628,390. Mrs. Kujawa and Messrs. Robo, Ketchum, Pimentel, Silagy, Sieving and DewhurstPimentel have not deferred any cash compensation or performance shares and therefore have no balances in the Deferred Compensation Plan. Balances for the defined contribution component of the SERP were as follows: Mr. Robo $2,929,533$7,521,878 (of which $1,145,759$1,837,579 was previously reported as compensation in prior Summary Compensation Tables for years prior to 2016)2019), Mrs. Kujawa $117,195, Mr. Ketchum $219,998, Mr. Pimentel $878,320$785,233 (of which $399,342$163,850 was previously reported as compensation in prior Summary Compensation Tables for years prior to 2016)2019), Mr. Nazar $1,083,482Silagy $1,555,668 (of which $340,800$302,008 was previously reported as compensation in prior Summary Compensation Tables for years prior to 2016)2019), Mr. Silagy $517,696Nazar $2,776,511 (of which $58,821$597,858 was previously reported as compensation in prior Summary Compensation Tables for years prior to 2016)2019), Mr. Sieving $1,447,626 and Mr. Dewhurst $648,014 (of which $319,971 was previously reportedPimentel $0, as compensationthe payments described in prior Summary Compensation Tables for years prior to 2016).footnote (4) above comprised the total account balance. The balances of the vested portion of the deferred retirement awards for Messrs.Mr. Robo and Dewhurst were $8,208,813 and $3,895,471, respectively.$23,681,311.

 

8180


Additional Disclosure Related to Nonqualified Deferred Compensation Table

Cash deferral elections under the Deferred Compensation Plan must be made prior to the period in which the cash is earned and can range, in whole percentages, from 1% to 100% of a participant’s base salary and/or annual incentive award. Equity deferral elections must be made by December 31 of the year preceding the beginning of the applicable performance period, and participants electing to defer performance shares may defer all or a portion of the payout amount. Deferred Compensation Plan earnings are not guaranteed by the Company.

The Company’s contributions to the SERP for each NEO also are also considered deferred compensation. The contributions and earnings inTable 6: Nonqualified Deferred Compensation include those from the nonqualified defined contribution portion of the SERP. Distributions are in the form of lump sum payments, which may be subject to asix-month delay following termination of employment in compliance with Code sectionSection 409A.

Earnings in 20162019 from previous deferrals of cash compensation came from phantom investments in the investment vehicles, which mirror the funds available to participants in the Company’s 401(k) plan and include mutual funds, index funds and similar investment alternatives offered to participants under the Company’s 401(k) plan. The Company does not provide a guaranteed rate of return on these funds.

Potential Payments Upon Termination or Change in Control

For the reasons discussed inCompensation Discussion & Analysis, NextEra Energy has entered into the Retention Agreements, which commit the Company to make payments to NEOs under special circumstances. Generally, these are changes in corporate control of the Company and termination of the NEO’s employment.

In accordance with SEC instructions, these quantitative disclosures assume that a change in control took place on December 31, 2016.2019. In fact, no change in control of the Company occurred on that date and no NEO’s employment terminated on that date. If such an event were to occur in the future, actual payments would likely be different from those presented here based on various factors, including the NextEra Energy common stock price at such time.

Consistent with SEC instructions, the amounts shown in the tables that follow exclude obligations due from the Company to the NEO following a triggering event for: (1) any earned but unpaid base salary, annual incentive compensation and long-term incentive compensation through the date of termination; (2) vested benefits under the Company’s employee pension and 401(k) plans and all other benefit plans in accordance with their terms and conditions; (3) accrued vacation pay; (4) reimbursement of reasonable business expenses incurred prior to the date of termination; and (5) any other compensation or benefits to which the NEO may be entitled under and in accordance with the Company’s generally applicablenon-discriminatory plans or employee benefit programs, including the retiree medical plan. Furthermore, all payments shown in the tables exclude the obligations of the Company to the NEO for vested benefits under the SERP, the Deferred Compensation Plan and the vested portions of Mr. Robo’s deferred retirement awards. SeeTable 5: Pension Benefits andTable 6: Nonqualified Deferred Compensation for the values of accumulated SERP and Deferred Compensation Plan benefits, and Mr. Robo’s vested deferred retirement awards, at December 31, 2016.2019. Mr. DewhurstPimentel is not included in these tables as he was no longer an employee of the Company as of December 31, 2016.2019.

81


Potential Payments Under Retention Agreements

Each NEO is a party to a Retention Agreement with the Company. These agreements are all substantially equivalent and generally provide for certain protections and benefits to the NEO in the event of a change in control of the Company in exchange for the NEO’s continued full-time commitment to the interests of the Company during a transition period of three years following a change in control (two years in the case of Mr. Nazar). The NEOs also undertake confidentiality commitments requiring them to hold in a fiduciary

82


capacity all secret or confidential information relating to the Company and, under most circumstances, not to divulge any such information either during or after the period of employment.

Each Retention Agreement provides for a mutual commitment to the NEO’s continued employment for a period of three years (two years in the case of Mr. Nazar) following a change in control of the Company. In this situation,If a change in control occurs, the NEO generally will receive thean accelerated payout or vesting of previously granted equity-based awards that the NEO would otherwise have received in the normal course of business had the change in control not occurred assumingand had the NEO’s employment continued employment.over the remaining vesting periods. This accelerationimmediate payment of equity awards is not limited to the NEOs, but generally will also occur for all officers and employees who hold such equity awards.

Tables 7aand 7b and the accompanying discussion of the Retention Agreements set forth the details of the estimated payments that would have been made to the NEOs (on December 31, 20162019 and December 31, 2017,2020, respectively) had a change in control actually occurred at the close of business on December 31, 2016,2019, assuming each of the NEOs continued in employment throughout 2017.2020.

Table 7a: Potential Compensation to Named Executives Upon Change in Control

 

  
 

James L.
Robo

 

  

Rebecca J.

Kujawa

 

  

John W.
Ketchum

 

  

Eric E.

Silagy

 

  

Manoochehr K.
Nazar

 

  

Charles E.
Sieving

 

 
 James L.
Robo
  John W.
Ketchum
  Armando
Pimentel, Jr.
  Manoochehr K.
Nazar
  

Eric E.

Silagy

   

Long-Term Incentive Awards:

                        
  

1st 50% of Performance Share Awards(1)

 $11,535,070  $993,290  $2,198,340  $2,149,470  $1,525,020   

 

$21,600,520

 

 

 

  

 

$1,217,440

 

 

 

  

 

$4,160,690

 

 

 

  

 

$5,590,060

 

 

 

  

 

$4,112,460

 

 

 

  

 

$2,925,450

 

 

 

Restricted Stock Awards(2)

  5,014,330   764,780   1,366,260   1,342,010   924,380 
  

Restricted Stock and NEP Common Unit Awards(2)

  

 

3,020,400

 

 

 

  

 

575,440

 

 

 

  

 

1,299,260

 

 

 

  

 

1,763,170

 

 

 

  

 

1,333,580

 

 

 

  

 

916,310

 

 

 

  

Stock Option Awards(3)

  2,136,710   146,190   743,230   748,390   472,080   

 

23,987,350

 

 

 

  

 

835,490

 

 

 

  

 

3,854,730

 

 

 

  

 

5,099,610

 

 

 

  

 

4,000,190

 

 

 

  

 

2,813,840

 

 

 

  

Total:

 $18,686,110  $1,904,260  $4,307,830  $4,239,870  $2,921,480   

 

$48,608,270

 

 

 

  

 

$2,628,370

 

 

 

  

 

$9,314,680

 

 

 

  

 

$12,452,840

 

 

 

  

 

$9,446,230

 

 

 

  

 

$6,655,600

 

 

 

 

(1)

Upon a change in control, 50% of all outstanding performance share awards vest and are payable at the greater of target or the average of the actual performance factors used to determine payout of performance share awards which vested over the three years prior to the year in which the change in control occurred. Amounts shown are based on a closing NextEra Energy common stock price on December 30, 201631, 2019 of $119.46$242.16 and performance factors are calculated based on actual performance for the three completed three-year performance periods preceding the year in which the change in control is assumed to have occurred. Amounts shown include the value of the acceleration of 50% of the performance shares awarded for the three-year performance periods ending December 31, 20172020 and December 31, 2018.2021. At the assumed change in control date, no performance shares had been awarded for the performance period ending December 31, 2019.2022.

 

(2)

Upon a change in control, all outstanding performance-based restricted stock and NEP common unit awards vest. Amounts shown are based on a closing NextEra Energy common stock price on December 30, 201631, 2019 of $119.46.$242.16 and a NEP common unit price on December 31, 2019 of $52.65. The award agreement pursuant to which Mr. Robo was awarded a deferred retirement award contains change in control provisions which supersede the provisions of the Retention Agreement for that award only. Upon a change in control, absent termination of employment, the deferred retirement award does not vest.

 

(3)

Upon a change in control, all outstanding stock option awards vest. Amounts shown reflect thein-the-money values of accelerated stock options based on the difference between the option exercise price and the closing NextEra Energy common stock price on December 30, 201631, 2019 of $119.46.$242.16.

82


Table 7b: Potential Compensation to Named Executives atOne-Year Anniversary of Change in Control(1)

 

   James L.
Robo
  John W.
Ketchum
  Armando
Pimentel, Jr.
  Manoochehr K.
Nazar
  

Eric E.

Silagy

 

2nd 50% of Performance Share Awards(2)

 $11,535,070  $992,890  $2,198,120  $2,149,470  $1,525,020 
       
   

James L.
Robo

 

  

Rebecca J.
Kujawa

 

  John W.
Ketchum
  

Eric E.

Silagy

 

  

Manoochehr K.
Nazar

 

  

Charles E.
Sieving

 

 
       

 

2nd 50% of Performance Share Awards(2)

 

  

 

$21,600,520

 

 

 

  

 

$1,217,020

 

 

 

  

 

$4,160,690

 

 

 

  

 

$5,589,600

 

 

 

  

 

$4,112,460

 

 

 

  

 

$2,925,450

 

 

 

 

(1)

All amounts in the table assume the same $119.46$242.16 stock price on theone-year anniversary of the assumed change in control.

 

(2)

Each NEO is entitled to receive the remaining 50% of histheir outstanding performance share awards on the first anniversary of the change in control if hethe NEO has remained employed by the Company or an affiliate through such date, or upon an earlier termination of employment by the Company (except for death, disability or cause (which generally means repeated willful violations of the NEO’s duties under histheir Retention Agreement or a felony conviction involving an act at the Company’s expense)) or by the named executiveNEO for “good reason” (which generally includes the assignment of duties and responsibilities that are materially inconsistent

83


with those in effect during the90-day period immediately preceding the change in control, material decreases in compensation or benefits after the change in control, or change in job location of more than 20 miles). Amounts shown are based on performance factors calculated based on actual performance for the three completed three-year performance periods preceding the year in which the change in control occurred. Amounts shown include the value of the acceleration of 50% of the performance shares awarded for the three-year performance periods ending December 31, 20172020 and December 31, 2018.2021. At the assumed change in control date, no performance shares had been awarded for the performance period ending December 31, 2019.2022. Amounts shown in the table are due to the NEO under such circumstances in addition to the amounts shown inTable 7a: Potential Compensation to Named Executives Upon Change in Control.

The amounts shown inTables 7a and7b represent the accelerated payment of compensation that the NEOs would otherwise have received over time absent a change in control, assuming continued employment. The employment protection amounts represent additional payments and are intended both to compensate the NEO for the lost opportunity of continued employment and to encourage the new leadership of thepost-change-in-control entity to evaluate carefully the desirability of terminating the NEO’s employment as opposed to seeking an appropriate role for the NEO in the new entity.

Materially, theThe Retention Agreements are designed to provide the NEOs with economic value in the event of termination equivalent to three years’ (two years’ in the case of Mr. Nazar) worth of foregone base salary, annual incentive compensation and incremental retirement contributions. In addition, if termination by the Company for reasons other than death, disability or cause, or by the NEO for good reason, were to occur prior to the first anniversary of the change in control, the acceleration of the then-outstanding performance shares, as shown inTable 7b, would also occur. Because of this intent, the NEOs’ Retention Agreements in effect as of December 31, 2016, except2019 for Messrs. Ketchum’s, Nazar’sRobo and Silagy’s agreements,Sieving provide for the additional payment by the Company of any excise tax imposed by section 4999 of the Code. However, if the total value of all payments due (calculated as required under section 280G of the Code) does not exceed 110% of the “safe harbor amount” under section 280G, or 2.99 times the NEO’s five-year averageW-2 earnings, then nogross-up payment will be made to the NEO and the amounts payable under the Retention Agreement will be reduced to the “safe harbor amount.” In accordance with the Company’s Excise TaxGross-Up Policy, which generally precludes the inclusion of excise taxgross-up provisions in Retention Agreements entered into, or materially modified, after December 2009, Mrs. Kujawa’s and Messrs. Ketchum’s, Nazar’sSilagy’s and Silagy’sNazar’s Retention Agreements do not include excise taxgross-up provisions. The NEO remains responsible for normal federal, state and local tax liability on the underlying economic value transferred.

If a change in control had occurred on December 31, 20162019 and if any or all of Messrs. Robo’s, Ketchum’s, Pimentel’s, Nazar’s or Silagy’s employmentthe NEOs had been terminated on that date, the Company estimates that the amounts shown inTable 8 would have become payable, in addition to the payments set forth above inTable 7a: Potential Compensation to Named Executives Upon Change in Control and inTable 7b: Potential Compensation to Named Executives atOne-Year Anniversary of Change in Control.

83


Table 8: Potential Post-Employment Compensation to Named Executives Upon Termination

Without Cause or for Good Reason Following Change in Control(1)

 

   James L.
Robo
  John W.
Ketchum
  Armando
Pimentel, Jr.
  Manoochehr K.
Nazar
  

Eric E.

Silagy

 

Cash Severance(2)

 $12,597,000  $3,398,250  $5,808,030  $4,021,320  $5,540,860 

Deferred Retirement Awards(3)

  3,711,140   0   0   0   0 

Incremental Increase in Nonqualified SERP(4)

  2,993,310   742,080   1,407,660   937,060   1,201,810 

Continued Participation in Active Employee Welfare Benefits(5)

  272,130   87,525   149,282   106,206   125,898 

Continued Participation in Certain Perquisites Programs(6)

  156,350   166,560   164,130   111,210   156,570 

Certain Limited Outplacement and Relocation Allowances(7)

  53,500   53,500   53,500   53,500   53,500 

Code Section 280G Gross-up(8)

  15,462,866   0   0   0   0 

Total:

 $35,246,296  $4,447,915  $7,582,602  $5,229,296  $7,078,638 

       
   

James L.
Robo

 

  

Rebecca J.
Kujawa

 

  

John W.
Ketchum

 

  

Eric E.

Silagy

 

  

Manoochehr K.
Nazar

 

  

Charles E.
Sieving

 

 
       

 

Cash Severance(2)

 $

 

17,791,500

 

 

 

 $

 

2,967,690

 

 

 

 $

 

6,876,760

 

 

 

  

 

$8,309,520

 

 

 

 $

 

4,748,100

 

 

 

 $

 

6,254,980

 

 

 

       

 

Deferred Retirement Awards(3)

  

 

5,805,060

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

       

 

Incremental Increase in Nonqualified SERP(4)

  

 

4,370,710

 

 

 

  

 

515,940

 

 

 

  

 

1,577,720

 

 

 

  

 

1,919,040

 

 

 

  

 

1,193,360

 

 

 

  

 

1,091,300

 

 

 

       

 

Continued Participation in Active Employee Welfare Benefits(5)

  

 

244,900

 

 

 

  

 

71,720

 

 

 

  

 

125,610

 

 

 

  

 

171,040

 

 

 

  

 

70,450

 

 

 

  

 

106,410

 

 

 

       

 

Continued Participation in Certain Perquisites Programs(6)

  

 

159,630

 

 

 

  

 

152,400

 

 

 

  

 

151,780

 

 

 

  

 

169,090

 

 

 

  

 

110,410

 

 

 

  

 

150,000

 

 

 

       

 

Certain Limited Outplacement and Relocation Allowances(7)

  

 

48,750

 

 

 

  

 

48,750

 

 

 

  

 

48,750

 

 

 

  

 

48,750

 

 

 

  

 

48,750

 

 

 

  

 

48,750

 

 

 

       

 

Code Section 280GGross-up (Cutback)(8)

  

 

(4,199,448

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

 

(691,164

 

 

  

 

(67,907

 

 

       

 

Total:

 $

 

24,221,102

 

 

 

 $

 

3,756,500

 

 

 

 $

 

8,780,620

 

 

 

  

 

$10,617,440

 

 

 

 $

 

5,479,906

 

 

 

 $

 

7,583,533

 

 

 

 

84


(1)

Amounts shown in the table are due to the NEO under such circumstances in addition to the amounts shown inTable 7a: Potential Compensation to Named Executives Upon Change in Control andTable 7b: Potential Compensation to Named Executives atOne-Year Anniversary of Change in Control.Cause and good reason are defined in footnote 2 toTable 7b.7b.

 

(2)

The amount shown represents the value of a cash lump sum payment due within 45 days of termination (subject to the requirements of section 409A of the Code) equal to three times (two in the case of Mr. Nazar) the sum of the NEO’s annual base salary plus his annual incentive. The annual incentive is equal to the higher of target annual incentive in the year of termination or the average percentage of the NEO’s annual incentive divided by his base salary for each of the three years prior to the year in which the change in control occurred. Since all annual incentive compensation for 20162019 was earned on December 31, 2016,2019, no prorated amounts of 20162019 annual incentive compensation are included.

 

(3)

Under Mr. Robo’s deferred retirement award, if Mr. Robo was discharged without cause or resigned for good reason upon or after a change in control, then a portion of his outstanding unvested deferred retirement award (including reinvested dividends) would vest according to the schedule contained in the award agreement. If such termination had occurred on December 31, 20162019 under these circumstances, the vesting percentage would have been 70% for100% of the total deferred retirement award granted to Mr. Robo in 2012. Amounts shown are based on the closing NextEra Energy common stock price on December 30, 201631, 2019 of $119.46.$242.16.

 

(4)

The amount shown represents the value of a cash lump sum payment due within 45 days of termination (subject to the requirements of Code section 409A) equal to the incremental increase in value of the NEO’s nonqualified SERP benefits under the defined benefit and defined contribution formulas if the NEO had continued employment for three years (or, for Mr. Nazar, two years) from the date of termination, and assuming the NEO received the annual compensation increases required under the Retention Agreement for the three-year ortwo-year employment period.

 

(5)

The Retention Agreements provide for continued coverage under all employee benefit plans for three years (two in the case of Mr. Nazar). Welfare plansPlans include the broad-based employee medical plan, the broad-based employee dental plan, short-term and long-term disability insurance and the broad-based employee life insurance plan. Amounts shown represent three-year employer costs (two-year(two-year employer costs in the case of Mr. Nazar), based on December 31, 20162019 rates (plus, for employee medical and dental coverage, projected average annual cost increase of 2%)0.30% and decrease of 0.05%, respectively). For long-term disability, the estimated total actuarial liability is equal to the approximate cost of insuring the liability for the severance period. These amounts assume no offsets for benefits provided by a subsequent employer. The amount set forth on this line is also payable to the NEO or his beneficiaries if the NEO dies or becomes disabled during the employment period following a change in control.

 

(6)

The Retention Agreements provide for continued participation in certain other benefits and perquisites for three years (two in the case of Mr. Nazar). Amounts shown include: social club memberships; participation in the executive vehicle program;program (or, for Mrs. Kujawa, annual perquisite allowance in lieu of executive vehicle program); personal financial planning, accounting and legal services; personal communication and computer equipment; home security, including monitoring and maintenance; and personal excess liability insurance. The Retention Agreements do not provide for use of Company-owned aircraft. The amount shown for each NEO represents the Company’s approximate three-year costs (two-year(two-year costs in the case of Mr. Nazar) for providing such perquisites to the NEO, based on 20162019 and prior years’ actual costs.

 

(7)

Includes an aggregate cost per NEO of $28,500$23,750 for outplacement services, fees for legal or accounting advice related to tax treatment of certain payments under the Retention Agreements and reimbursement for miscellaneous relocation expenses incurred by the NEO in pursuing other business opportunities which are not reimbursed by another employer. Such reimbursements are required under the Retention Agreements.

 

84


(8)

The amount shown for Mr.For Messrs. Robo isand Sieving, the aggregate estimatedpayment due (calculated as required under section 280G of the Code) does not exceed 110% of the “safe harbor amount” under section 280G, or 2.99 times their five-year average W-2 earnings and, therefore, no gross-up payment duewill be made to either and the amounts payable under histhe Retention Agreement forwill be reduced to the excise tax imposed on amounts shown inTable 7a: Potential Compensation to Named Executives Upon Change in Control“safe harbor amount.” Mrs. Kujawa’s and inTable 7b: Potential Compensation to Named Executives at One-Year Anniversary of Change in Control, as well as for the excise taxes imposed on amounts shown in this table in the rows above. Messrs. Ketchum’s, Nazar’sSilagy’s and Silagy’sNazar’s Retention Agreements do not provide for excise tax gross-ups. The aggregate payment due to Mr. Nazar exceeds the “safe harbor amount” under section 280G of the Internal Revenue Code, and, in accordance with Mr. Nazar’s Retention Agreement, the amounts shown as payable to Mr. Nazar would be reduced by the indicated amount to the “safe harbor amount.” The aggregate payment due to each of Mrs. Kujawa and Messrs. Ketchum and Silagy does not exceed such NEO’s “safe harbor amount.” With the exception of a portion of accelerated stock option awards, the aggregate change in control-related compensation and benefit amount in excess of the NEO’s “base amount” is considered an “excess parachute payment” and is subject to an excise tax under section 4999 of the Code. In circumstances where the NEO is entitled to receive from the Company a lump sum cash gross-up payment, the payment would be in an amount such that the net gross-up payment (after federal, state, and local income and excise taxes and any penalties and interest are paid) is equal to the Code section 4999 excise tax. The 20162019 annual incentive award and the performance share award for the performance period ended December 31, 20162019 (payout values for which are included inTable 1a: 20162019 Summary Compensation Table and inTable 4: 20162019 Option Exercises and Stock Vested,, respectively) were fully earned as of the assumed change in control date and are therefore not part of the “excess parachute payment” amount or the estimated gross-up amount.

Each Retention Agreement provides that a change in control occurs upon any of the following events:

 

(1)

the acquisition by any individual, entity or group of 20% or more of either NextEra Energy’s common stock or the combined voting power of NextEra Energy, other than directly from NextEra Energy or pursuant to a merger or other business combination which does not itself constitute a change in control; or

 

(2)

the incumbent directors of NextEra Energy ceasing, for any reason, to constitute a majority of the Board, unless each director who was not an incumbent director was elected, or nominated for election,

85


by a majority of the incumbent directors and directors subsequently so elected or appointed (excluding those elected as a result of an actual or threatened election contest or other solicitation of proxies); or

 

(3)

there is consummated a merger, sale of assets, reorganization or other business combination of NextEra Energy or any subsidiary with respect to which (a) the voting securities of NextEra Energy outstanding immediately prior to the transaction do not, immediately following the transaction, represent more than 55% (60% for Mr. Robo) of the common stock and the voting power of all voting securities of the resulting ultimate parent entity or (b) members of the Board constitute less than a majority of the members of the board of directors of the resulting ultimate parent entity; or

 

(4)

the shareholders approve the liquidation or dissolution of NextEra Energy.

In addition, the Retention Agreements extend the NEOs’ protection to certain potential change in control situations, which are:

 

(1)

the announcement of an intention to take or consider taking actions which, if consummated or approved by shareholders, would constitute a change in control; or

 

(2)

the acquisition by any individual, entity or group of 15% or more of either NextEra Energy’s common stock or the combined voting power of NextEra Energy, other than directly from NextEra Energy or pursuant to a merger or other business combination which does not itself constitute a change in control.

No accelerated or incremental payments are triggered by a potential change in control, but the NEO is protected for a three-year (two-year(two-year in the case of Mr. Nazar) employment period. In addition, if an agreement is entered into providing for the merger, sale of assets, reorganization or other business combination of NextEra Energy as set forth above, and such merger, sale of assets, reorganization or other business combination is approved by the shareholders of NextEra Energy but thereafter does not become effective, Mr. Robo will be entitled to a cash retention payment in an amount equal toone-half of the sum of his then-current annual base salary plus his annual incentive compensation under the Annual Incentive Plan, payable within 30 days after termination of the transaction.

85


Potential Payments Under the Severance Plan

The Severance Plan provides for the payment of severance benefits to the NEOs and to certain other senior executives if their employment is involuntarily terminated other than for Cause, defined as discussed below (and other than in a termination governed by the terms of the Retention Agreements). SeeCompensation Discussion & Analysis for a discussion of the purpose of the Severance Plan.

The Severance Plan provides severance benefits following involuntary termination other than for Cause in exchange for entry into a release of claims against the Company and an agreement (the “Non-Competition“Non-Competition Agreement”) to adhere to certainnon-competition and related covenants protective of the Company. Following a covered involuntary termination and the execution of the release and theNon-Competition Agreement, the NEO would receive a cash payment equal to two times his annual base salary plus two times his target annual incentive compensation for the year of termination, payable in two equal annual installments. In addition, the NEO’s outstanding equity and equity-based awards would vest pro rata, and become payable at the end of any applicable performance periods, subject to the attainment by the Company of the specified performance objectives. The NEO also would receive certain ancillary benefits, including outplacement assistance or payment in an amount equal to the value of the outplacement assistance. Amounts payable under the Severance Plan are subject to a cap equal to six times the average of the NEO’s last three years’ base salary plus annual incentive.

If the employment of Mrs. Kujawa or Messrs. Robo, Ketchum, Pimentel,Silagy, Nazar or Silagy,Sieving, or any of them, had been involuntarily terminated on December 31, 20162019 in circumstances triggering the Company’s obligations under the Severance Plan, the Company estimates that the amounts shown inTable 9 below would have become payable.

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Table 9: Potential Post-Employment Compensation Upon Termination Qualifying for Payments

Under the Severance Plan

 

 

James
L. Robo

 

  

Rebecca J.
Kujawa

 

  

John W.
Ketchum

 

  

Eric
E. Silagy

 

  

Manoochehr
K. Nazar

 

  

Charles E.
Sieving

 

 
 

James

L. Robo

  John W.
Ketchum
  Armando
Pimentel, Jr.
  Manoochehr
K. Nazar
  Eric
E. Silagy
   

Cash Severance(1)

 $6,370,000  $1,955,000  $2,849,540  $2,972,280  $2,706,740  $

 

7,540,000

 

 

 $

 

1,798,600

 

 

 

 $

 

3,344,920

 

 

 

 $

 

3,923,940

 

 

 

 $

 

3,391,500

 

 

 

 $

 

3,207,680

 

 

 

  

Long-Term Incentive Awards:

                  
  

Performance Share Awards(2)

  6,324,212   583,801   1,187,193   1,192,091   787,122   

 

11,417,360

 

 

 

  

 

539,530

 

 

 

  

 

2,187,920

 

 

 

  

 

2,875,890

 

 

 

  

 

2,182,350

 

 

 

  

 

1,540,380

 

 

 

  

Restricted Stock Awards(3)

  3,417,631   517,740   930,235   931,191   612,471   

 

2,111,920

 

 

 

  

 

592,160

 

 

 

  

 

879,720

 

 

 

  

 

1,201,600

 

 

 

  

 

937,160

 

 

 

  

 

639,190

 

 

 

  

Stock Option Awards(4)

  1,568,197   78,406   547,308   560,737   336,258   

 

17,906,560

 

 

 

  

 

446,390

 

 

 

  

 

2,785,710

 

 

 

  

 

3,705,220

 

 

 

  

 

2,999,710

 

 

 

  

 

2,096,860

 

 

 

  

Deferred Retirement Awards(5)

  3,635,765   0   0   0   0   

 

4,394,960

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

Certain Limited Outplacement and Other Perquisites(6)

  35,000   35,000   35,000   35,000   35,000   

 

35,000

 

 

 

  

 

35,000

 

 

 

  

 

35,000

 

 

 

  

 

35,000

 

 

 

  

 

35,000

 

 

 

  

 

35,000

 

 

 

  

Cutback Under Plan Benefit Cap(7)

  0   0   0   0   0   

 

10,241,200

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

 

0

 

 

 

  

Total:

 $21,350,805  $3,169,947  $5,549,276  $5,691,299  $4,477,591  $

 

33,164,600

 

 

 

 $

 

3,411,680

 

 

 

 $

 

9,233,270

 

 

 

 $

 

11,741,650

 

 

 

 $

 

9,545,720

 

 

 

 $

 

7,519,110

 

 

 

 

(1)

The amount shown represents the value of a cash lump sum payment equal to two times the sum of the NEO’s annual base salary plus his target annual incentive in effect on December 31, 2016.2019.

 

(2)

Upon a qualifying involuntary termination, a pro rata portion of outstanding performance share awards would continue to vest and would be paid based on the Company’s actual level of achievement of the performance objectives at the conclusion of the performance period. Amounts shown include the value of the performance shares awarded for the three-year performance periods ending December 31, 20172020 and December 31, 2018,2021, respectively, based on the closing NextEra Energy common stock price on December 30, 201631, 2019 of $119.46.$242.16. As the actual level of achievement of the performance objectives at the conclusion of the performance periods ending December 31, 20172020 and December 31, 2018,2021, respectively, would not have been known upon a hypothetical qualifying involuntary termination on December 31, 2016,2019, amounts shown assume target, or 100%, performance. Actual payouts would be between 0% and 200% of target.

 

86


(3)

Upon a qualifying involuntary termination, a pro rata portion of outstanding performance-based restricted stock and common unit awards would continue to vest, subject to the attainment of the applicable performance objective. Amounts shown assume the attainment of the performance objective and are based on the closing NextEra Energy common stock price on December 30, 201631, 2019 of $119.46.$242.16 and NEP common unit price on December 31, 2019 of $52.65.

 

(4)

Upon a qualifying involuntary termination, outstanding stock option awards would vest on a pro rata basis. Amounts shown reflect thein-the-money values of the stock options that would vest based on the difference between the option exercise price and the closing NextEra Energy common stock price on December 30, 201631, 2019 of $119.46.$242.16.

 

(5)

Upon a qualifying involuntary termination, the outstanding unvested deferred retirement award granted to Mr. Robo would vest on a pro rata basis. Amounts shown are based on the closing NextEra Energy common stock price on December 30, 201631, 2019 of $119.46.$242.16.

 

(6)

Includes a maximum cost per NEO of $25,000 for providing outplacement services, plus the cost of financial planning, legal or accounting services.

 

(7)

The total value of severance paid to each NEO is subject to a cap equal to six times the average of such NEO’s last three years’ base salary plus annual incentive. Based on a qualifying involuntary termination on December 31, 2016,2019, the estimated total severance that would have been payable to each of the NEOsMr. Robo would not have exceededbe reduced to the plan benefit cap and would not have been subject to a cutback.amount indicated, which is the maximum capped amount.

Under the Severance Plan, an involuntary termination is defined as any of the following:

 

(1)

the participant’s termination by the Company or an affiliate without Cause (as described further below) and other than as a result of death or disability; or

 

(2)

the participant’s resignation after the occurrence of one or more of the following without the participant’s consent:

 

 (i)

the Company’s material breach of a material provision of the Severance Plan or the Company’s or an affiliate’s material breach of a material provision of any other agreement between the participant and the Company or such affiliate;

 

 (ii)

a relocation of participant’s principal place of employment by more than 90 miles; or

 

 (iii)

a material, adverse change in the participant’s title, authority, duties or responsibilities with the Company or an affiliate, or any reduction in the participant’s annual base salary or annual target cash incentive opportunity.

87


Cause is generally defined under the Severance Plan as any of the following:

 

(1)

repeated violations by the participant of the participant’s obligations to the Company or an affiliate that are willful and deliberate, which are committed in bad faith or without reasonable belief that the violations are in the Company’s or an affiliate’s best interests and that are not remedied within a reasonable period of time after the participant’s receipt of written notice; or

 

(2)

the participant’s conviction of a felony.

The NEOs are required to comply with certain protective covenants, including two-year non-competetwo-yearnon-compete andnon-solicitation provisions, in order to receive payments under the Severance Plan. Any severance payments would be subject to repayment and/or forfeiture if any of the protective covenants are violated.

Other Potential Post-Employment Payments to NEOs

Potential Payments Under Equity Award Agreements

The award agreements for each long term equity incentive award (except Mr. Robo’s deferred retirement award, the terms of which are described below) outstanding during 20162019 contain provisions which govern treatment of the award in the event of the NEO’s termination of employment due to death, disability, retirement at or after age 6555 (“normal retirement”), or retirement after age 50 meeting terms and conditions set by, and acceptable to, the Compensation Committee (an “approved early retirement”). Under the terms of the equity award agreements (other than the deferred retirement awards), each outstanding unvested equity award vests on a pro rata basis for service through the date of death or disability or normal retirement (for

87


(for performance share, stock option, performance-based restricted stock and performance-based restricted stockNEP common unit awards based on days of service completed during the vesting period). The pro rata portion of each stock option, performance-based restricted stock and performance-based restricted stockNEP common unit award is vested upon death or disability. In the case of normal retirement, stock option awards vest upon retirement and performance-based restricted stock and NEP common units generally vestsvest upon itstheir normal vesting date following satisfaction of applicable performance criteria. The pro rata portion of each performance share award is paid after the end of the performance period, subject to satisfaction of applicable performance criteria. SeeTable 3: 20162019 Outstanding Equity Awards at Fiscal Year End for information for each NEO as of December 31, 20162019 about outstanding unvested equity awards which would vest as determined in the manner set forth above upon death, disability or normal retirement.

If a NEO was eligible for, and retired in accordance with, an approved early retirement, all outstanding and unvested equity awards (except the deferred retirement awards, as described below) would vest in full, and would be paid out either on the vesting schedule set forth in each award agreement or upon retirement, generally subject to satisfaction of applicable performance criteria.

The value of the prorated outstanding long-term incentive awards at December 31, 20162019 for each of the NEOs would have been approximately: Mr. Robo, $14,385,050;$37,073,520; Mrs. Kujawa, $1,745,290; Mr. Ketchum, $1,435,740;$6,979,560; Mr. Pimentel, $3,254,880;Silagy, $9,325,400; Mr. Nazar, $3,265,060;$7,333,880; and Mr. Silagy, $2,127,330.Sieving, $5,086,270. As of December 31, 2016,2019, each of Messrs. Robo, Pimentel,Silagy and Nazar and Silagy were of an age which would have made them eligible for consideration by the Compensation Committee for an approved early retirement (Mr. Ketchum would not have been eligible for consideration for an approved early retirement).retirement. If the Compensation Committee had approved an early retirement for any of Messrs. Robo, Pimentel,Silagy or Nazar or Silagy on that date (which the Compensation Committee did not do), the value on December 31, 20162019 of the outstanding long-term incentive awards that would have continued to vest on their original terms (performance shares and performance-based restricted stock)stock and NEP common units) or vested (options) would have been approximately: Mr. Robo, $19,829,560;$49,508,290; Mr. Pimentel, $4,539,310;Silagy, $12,685,510; and Mr. Nazar $4,466,390; and Mr. Silagy, $3,054,610.$9,617,570.

The award agreement governing Mr. Robo’s deferred retirement award provides for partial accelerated vesting of the stock and accrued dividends upon death or disability, according to a schedule contained in the award agreement, but the award agreement does not provide for accelerated vesting upon retirement. If

88


Mr. Robo had terminated employment on December 31, 20162019 due to death or disability, 50%80% of his total deferred retirement award granted in 2012 would have vested. The value of the unvested shares vesting solely due to death or disability would have been approximately $2,575,199.$3,483,230. This amount is based on the closing price of the Company’s common stock on December 30, 201631, 2019 of $119.46.$242.16. All equity award agreements (including the agreements governing deferred retirement awards) includenon-solicitation andnon-competition provisions (effective during employment and for atwo-year period after termination), as well asnon-disparagement provisions. The terms of these protective covenants survive the termination of the award agreement and termination of employment.

88


Director Compensation

2019 Compensation ofNon-Employee Directors

 

89


DIRECTOR COMPENSATION

Table 10: 2016 Director Compensation

  

Name

(a)

 Fees Earned
or Paid
in Cash(2)
($)
(b)
  Stock
Awards(3)
($)
(c)
  Option
Awards
($)
(d)
  Non-Equity
Incentive
Plan
Compensation
($)
(e)
  Change in
Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
($)
(f)
  All Other
Compensation(4)(5)
($)
(g)
  Total
($)
(h)
 

Fees Earned
or Paid
in Cash(1)
($)
(b)

 

Stock
Awards(2)
($)
(c)

 

Option
Awards
($)
(d)

 

Non-Equity
Incentive
Plan
Compensation
($)
(e)

 

Change in
Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
($)
(f)

 

All Other
Compensation(4)(5)
($)
(g)

 

Total
($)
(h)

 

  

Sherry S. Barrat

 $144,953  $140,704  $0  $0  $0  $0  $285,657  

 

$132,000

 

 

 

 

$166,175

 

 

 

 

$0

 

 

 

 

$0

 

 

 

 

$0

 

 

 

 

$0

 

 

 

 

$298,175

 

 

Robert M. Beall, II(1)

  60,500   140,704   0   0   278   0   201,482 
  

James L. Camaren

  116,000   140,704   0   0   0   0   256,704  

 

128,000

 

 

 

 

166,175

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

294,175

 

 

  

Kenneth B. Dunn

  114,000   140,704   0   0   0   20,000   274,704  

 

140,000

 

 

 

 

166,175

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

10,000

 

 

 

 

316,175

 

 

  

Naren K. Gursahaney

  122,000   140,704   0   0   0   0   262,704  

 

136,000

 

 

 

 

166,175

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

302,175

 

 

  

Kirk S. Hachigian

  123,272   140,704   0   0   0   0   263,976  

 

148,000

 

 

 

 

166,175

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

314,175

 

 

  

Toni Jennings

  122,000   140,704   0   0   0   0   262,704  

 

136,000

 

 

 

 

166,175

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

10,000

 

 

 

 

312,175

 

 

  

Amy B. Lane

  114,000   140,704   0   0   0   0   254,704  

 

147,000

 

 

 

 

166,175

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

313,175

 

 

  

Rudy E. Schupp

  119,500   140,704   0   0   0   0   260,204  

 

160,000

 

 

 

 

166,175

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

326,175

 

 

  

John L. Skolds

  135,000   140,704   0   0   0   0   275,704  

 

156,000

 

 

 

 

166,175

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

322,175

 

 

  

William H. Swanson

  144,000   140,704   0   0   0   10,000   294,704  

 

165,000

 

 

 

 

166,175

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

20,000

 

 

 

 

351,175

 

 

  

Hansel E. Tookes, II

  129,000   140,704   0   0   0   0   269,704  

 

132,000

 

 

 

 

166,175

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

298,175

 

 

  

Darryl L. Wilson

 

 

126,000

 

 

 

 

166,175

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

292,175

 

 

 

(1)

Mr. Beall served as a director until May 2016 and, having reached the mandatory retirement age for Directors, did not stand for re-election at the 2016 annual meeting.

(2)

In 2016, Mr. Gursahaney elected to defer 100% of his annual cash retainer and meeting fees and2019, Ms. Jennings elected to defer $10,000$15,000 each quarter of her annual retainer.

 

(3)(2)

Non-employee directors of NextEra Energy received shares of NextEra Energy common stock in an amount determined by dividing $140,000$165,000 by the closing price of the common stock on the date of grant, rounded up to the nearest ten shares. On February 12, 2016,14, 2019, eachnon-employee director then in office received a grant of 1,260910 shares of stock valued at $111.67$182.61 per share, which Messrs. GursahaneyMs. Lane and Mr. Tookes and Ms. Lane elected to defer. Dividends are paid on the shares in cash. Dividends on deferred shares are credited to the participant’s account under the Deferred Compensation Plan. The amounts in this column represent the aggregate grant date fair value of equity-based compensation awards granted during 20162019 to eachnon-employee director valued in accordance with applicable SEC and accounting rules. For the February 20162019 equity compensation award, the grant date fair value was $140,704$166,175 per director.

 

    

As of December 31, 2016,2019, the following directors had unvested restricted stock awards outstanding: Mr. Gursahaney, 590; Mr. Hachigian, 400;outstanding awarded in connection with their initial election to the Board: Ms. Lane, 1,310; and Mr. Skolds, 400.1,310. (SeeCommon Stock Ownership of Certain Beneficial Owners and Management for complete March 17, 201723, 2020 balances.)

 

(4)

In accordance with applicable SEC rules, perquisites and personal benefits with an aggregate value of less than $10,000 are omitted.

 

(5)

Includes matching contributions to educational institutions on behalf of each of Messrs. Dunn ($20,000) and Swanson ($10,000)and Ms. Jennings made under the NextEra Energy Foundation’s matching gift program, which is available to all employees and directors. The matching contribution on behalf of Mr. DunnSwanson matched eligible contributions made by Mr. DunnSwanson in 20152018 and 2016.2019.

Additional Information About Director Compensation

NextEra Energy directors who are salaried employees of NextEra Energy or any of its subsidiaries do not receive any additional compensation for serving as a director or committee member. Mr. Robo is the only such director currently serving on the Board. Effective January 1, 2017, 2020,non-employee directors of NextEra Energy received an annual cash retainer of $90,000$105,000 plus a number of shares of NextEra Energy common stock determined by dividing $145,000$170,000 by the closing price of NextEra Energy common stock on the grant

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date, rounded up to the nearest ten shares. The grant date for the annual retainers paid for 20172020 was February 17, 2017,13, 2020, at which time thenon-employee directors of NextEra Energy were each granted 1,150620 shares of NextEra Energy common stock. These shares are generally not transferable until the director meets the Company’s stock ownership guidelines. When joining the Board, newly-electednon-employee

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directors are awarded a grant of NextEra Energy common stock that is approximately equal to the annual common stock retainer awarded to existingnon-employee directors, prorated based on the new Director’s date of election to the Board. These shares are not transferable until the director meets the Company’s stock ownership guidelines and, under the current non-employee directors stock plan, are subject to forfeiture if the director ceases to be a director within five years of his or her initial election to the Board for any reason other than death, disability or attainment of the Board’s mandatory retirement age. guidelines.

Non-employee Board committee chairpersons receive an additional annual retainer of $20,000$25,000 for chairing the Audit Committee, $20,000 for chairing the Compensation and Nuclear Committees and $15,000 for chairing the other committees. The Lead Director receives an annual retainer of $25,000,$30,000, except that a Lead Director who also serves as a Chair of any Board committee is only entitled to receive a single annual retainer in an amount equal to the Lead Director annual retainer. A fee of $2,000 is paid tonon-employee directors for each Board and committee meeting attended, whether in person or by telephone. Directors may defer all or a portion of their cash compensation and all or a portion of their equity compensation in the Deferred Compensation Plan and may participate in the Company’s matching gift program, which matches gifts to educational institutions up to a maximum of $10,000 per donor per year. Board members may travel on Company aircraft while on Company business and in limited circumstances fornon-business reasons if the Company would incur little, if any, incremental cost, space is available and the aircraft is in use for another authorized purpose. Board members may be accompanied by their immediate family members if space is available. Travel expenses to attend Board or committee meetings or while on Board business are reimbursed.

Director Stock Ownership Policy

Pursuant to the Corporate Governance Principles & Guidelines, to more closely align the interests of directors and shareholders, directors are required to own NextEra Energy common stock in an amount equal to seven times the annual cash retainer within five years after their initial election to the Board. All directors other than Mr. Wilson, who joined the Board in October 2018, currently meet this stock ownership guideline. Mr. Wilson has until October 2023 to meet the requirement. SeeCommon Stock Ownership of Certain Beneficial Owners and Management for information about director ownership of NextEra Energy common stock as of March 17, 2017.23, 2020.

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SHAREHOLDER PROPOSALS FOR 2018 ANNUAL MEETINGQuestions and Answers About the Annual Meeting

Why did I only receive a Notice of Internet Availability of Proxy Materials directing me to the Internet instead of the proxy statement and annual report?

Under SEC rules, NextEra Energy is furnishing proxy materials to many of its shareholders on the internet, rather than mailing paper copies of the materials to each shareholder.

On or about April 3, 2020, NextEra Energy mailed to many of its shareholders of record a Notice containing instructions on how to access and review the proxy materials, including the proxy statement and annual report to shareholders, on the internet. The Notice also instructs shareholders on how to access their proxy card to be able to submit their proxies on the internet. Brokerage firms and other nominees who hold NextEra Energy shares on behalf of beneficial owners will be sending their own similar Notice. Other shareholders, in accordance with their prior requests, have received ane-mail notification of how to access the proxy materials and submit their proxies on the internet. On or about April 3, 2020, NextEra Energy also began mailing a full set of proxy materials to certain shareholders, including shareholders who have previously requested a paper copy of the proxy materials.

Internet distribution of the proxy materials is designed to expedite receipt by shareholders, lower the cost of the annual meeting and conserve natural resources. However, if you would prefer to receive printed proxy materials, please follow the instructions included in the Notice. If you have previously elected to receive NextEra Energy’s proxy materials electronically, you will continue to receive the materials viae-mail unless you elect otherwise.

How do I access the proxy materials if I received a Notice of Internet Availability of Proxy Materials?

The Notice provides instructions regarding how to view NextEra Energy’s proxy materials for the 2020 annual meeting on the internet. As explained in greater detail in the Notice, to view the proxy materials and submit your proxy, you will need to follow the instructions in your Notice and have available your16-digit control number(s) contained in your Notice.

How do I request paper copies of the proxy materials?

Whether you hold NextEra Energy shares through a brokerage firm, bank or other nominee (in “street name”), or hold NextEra Energy shares directly in your name, as a shareholder of record, through NextEra Energy’s transfer agent, Computershare Trust Company, N.A. (“Computershare”) you may request paper copies of the 2020 annual meeting proxy materials by following the instructions listed atwww.proxyvote.com, by telephoning800-579-1639 or by sending ane-mail tosendmaterial@proxyvote.com.

What is the purpose of the annual meeting?

At the annual meeting, shareholders will act upon the matters identified in the accompanying notice of annual meeting of shareholders. These matters include the election as directors of the nominees specified in this proxy statement, ratification of appointment of Deloitte & Touche as NextEra Energy’s independent registered public accounting firm for 2020, approval, bynon-binding advisory vote, of NextEra Energy’s compensation of its NEOs as disclosed in this proxy statement and, if properly presented at the meeting, consideration of two shareholder proposals.

Who may attend the annual meeting?

Subject to space availability, all shareholders as of the record date, or their duly appointed proxies, may attend the annual meeting. Since seating is limited, admission to the meeting will be on a first-come, first-served basis. Registration and seating will begin at 7:30 a.m., Central time. If you plan to attend, please note that you will be required to present valid picture identification, such as a driver’s license or passport. Invited representatives of the media and financial community may also attend the annual meeting.

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You will need proof of ownership of NextEra Energy common stock on the record date to attend the annual meeting:

If you hold shares directly in your name as a shareholder of record or if you are a participant in NextEra Energy’s Employee Retirement Savings Plan:

If you received the Notice and you plan to attend the annual meeting, you may request an admission ticket by calling NextEra Energy Shareholder Services at800-222-4511.

If you received the proxy materials by mail, an admission ticket is attached to your proxy/confidential voting instruction card. If you plan to attend the annual meeting, please submit your proxy but keep the admission ticket and bring it with you to the annual meeting.

If your shares are held in “street name,” you will need to bring proof that you were the beneficial owner of those “street name” shares of NextEra Energy common stock as of the record date, such as a legal proxy or a copy of a bank or brokerage statement, and check in at the registration desk at the annual meeting.

For the safety of attendees, all boxes, handbags and briefcases are subject to inspection. Cameras (including cell phones with photographic capabilities), recording devices and other electronic devices are not permitted at the annual meeting.

Will the annual meeting be webcast?

The annual meeting will be webcast (audio, listen only) on May 21, 2020. If you do not attend the annual meeting, you are invited to visitwww.nexteraenergy.comat 8:00 a.m., Central time, on Thursday, May 21, 2020 to access the webcast of the annual meeting. You will not be able to vote your shares via the webcast. A replay of the webcast also will be available on NextEra Energy’s website for 90 days after the annual meeting.

Who is entitled to vote at the annual meeting?

Only NextEra Energy shareholders at the close of business on March 23, 2020, the record date for the annual meeting, are entitled to receive notice of, and to vote at, the annual meeting. If you were a shareholder on that date, you will be entitled to vote all of the NextEra Energy shares that you held on that date at the annual meeting or any adjournment or postponement of the annual meeting.

What are the voting rights of the holders of the Company’s common stock?

Each outstanding share of NextEra Energy common stock will be entitled to one vote on each matter properly brought before the annual meeting.

What constitutes a quorum?

The presence at the annual meeting, in person or by proxy, of the holders of a majority of the shares outstanding as of the record date will constitute a quorum, permitting the business of the meeting to be conducted.

In determining the presence of a quorum at the annual meeting, abstentions in person, proxies received but marked as abstentions as to any or all matters to be voted on that permit abstentions and proxies received with brokernon-votes on some but not all matters to be voted on will be counted as present.

What is a broker“non-vote”?

A broker“non-vote” occurs when a broker, bank or other holder of record that holds shares for a beneficial owner (“broker”) does not vote on a particular proposal because the broker has not received voting instructions from the beneficial owner and does not have discretionary voting power for that particular proposal. Brokers may vote on ratification of the appointment of NextEra Energy’s independent registered public accounting firm even if they have not received voting instructions from the beneficial owners whose

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shares they hold. However, brokers may not vote on any of the other matters submitted to shareholders at the 2020 annual meeting, including the election of directors, advisory vote on approval of executive compensation or on the shareholder proposals, unless they have received voting instructions from the beneficial owner.

What is the difference between holding shares as a shareholder of record and as a beneficial owner?

If your shares are registered directly in your name with NextEra Energy’s transfer agent, Computershare, you are considered, with respect to those shares, the “shareholder of record.” The Notice or, for some shareholders of record, a full set of the proxy materials has been sent directly to you by or on behalf of NextEra Energy.

If your shares are held in “street name,” you are considered the “beneficial owner” of the shares. The Notice or, for some beneficial owners, a full set of the proxy materials has been forwarded to you by or on behalf of your broker, who is considered, with respect to those shares, the shareholder of record.

How do I submit my proxy or voting instructions?

On the Internet or by telephone or, if you received the proxy materials by mail, also by mail

On the Internet—You may submit your proxy or voting instructions on the internet 24 hours a day and up until 11:59 p.m., Eastern time, on Wednesday, May 20, 2020 by going towww.proxyvote.com and following the instructions on your screen. Please have your Notice or proxy/confidential voting instruction card available when you access the web page. If you hold your shares in “street name,” your broker, bank, trustee or other nominee may provide additional instructions to you regarding how to submit your proxy or voting instructions on the internet.

By Telephone—You may submit your proxy or voting instructions by telephone by calling the toll-free telephone number(800-690-6903) found on your proxy/confidential voting instruction card or in your internet instructions, 24 hours a day and up until 11:59 p.m., Eastern time, on Wednesday, May 20, 2020 and following the prerecorded instructions. Please have your proxy/confidential voting instruction card or Notice and instructions provided on the internet available when you call. If you hold your shares in “street name,” your broker, bank, trustee or other nominee may provide additional instructions to you regarding how to submit your proxy or voting instructions by telephone.

By Mail—If you received the proxy materials by mail, you may submit your proxy by mail by marking the enclosed proxy/confidential voting instruction card, dating, signing and returning it in the postage-paid envelope provided to NextEra Energy, Inc. Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. Your proxy/confidential voting instruction card must be received no later than Wednesday, May 20, 2020. If you hold your shares in “street name,” your broker, bank, trustee or other nominee may provide additional instructions to you regarding voting your shares by mail.

Please see the Notice, your proxy/confidential voting instruction card or the information your broker provided to you for more information on your options. NextEra Energy’s proxy tabulator, Broadridge Investor Communications Solutions, Inc. (“Broadridge”), must receive any proxy/confidential voting instruction card that will not be delivered in person at the annual meeting, or any vote on the internet or by telephone, no later than 11:59 p.m., Eastern time, on Wednesday, May 20, 2020.

If you are a shareholder of record and you return your signed proxy/confidential voting instruction card or submit your proxy on the internet or by telephone, but do not indicate your voting preferences, the persons named as proxies in the proxy/confidential voting instruction card will vote the shares represented by that proxy as recommended by the Board on all proposals.

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In person at the annual meeting

All shareholders may vote in person at the annual meeting. However, if you are a beneficial owner of shares, you must obtain a legal proxy from your broker and present it to the inspector of election with your ballot to be able to vote in person at the annual meeting. See the response toWho may attend the annual meeting? for additional information on how to attend the annual meeting.

May I change my vote after I submit my proxy or voting instructions on the Internet or by telephone or after I return my proxy/confidential voting instruction card or voting instructions?

Yes. If you are a shareholder of record, you may revoke your proxy before it is exercised by:

providing written notice of the revocation to the Corporate Secretary of the Company at the Company’s offices at P.O. Box 14000, 700 Universe Blvd., Juno Beach, Florida 33408-0420;

making timely delivery of later-dated voting instructions on the internet or by telephone or, if you received the proxy materials by mail, also by making timely delivery of a valid, later-dated proxy/confidential voting instruction card; or

voting by ballot at the annual meeting, although please note that attendance at the meeting will not by itself revoke a previously granted proxy.

You may change your proxy by using any one of these methods regardless of the method you previously used to submit your proxy. If you are a beneficial owner of shares, you may submit new voting instructions by contacting your broker. You may also vote in person at the annual meeting if you obtain a legal proxy as described in the answer to the previous question. All shares for which proxies have been properly submitted and not revoked will be voted at the annual meeting.

How do I vote my Employee Retirement Savings Plan (401(k)) shares?

If you participate in the NextEra Energy, Inc. Employee Retirement Savings Plan (the “plan”), you may give voting instructions to Fidelity Management Trust Company, as trustee of the plan (“Trustee”). If you are anon-bargaining NextEra Energy employee, or a bargaining unit employee outside the state of Florida, you may give your voting instructions to the Trustee by following the instructions you received in ane-mail from NEXTERA ENERGY, INC. [id@ProxyVote.com] sent to your worke-mail address (unless you opted to receive a paper copy of the proxy materials). If you are a FPL bargaining unit employee in Florida, a participant in the plan who is not a current employee of NextEra Energy or its subsidiaries or if you opted out ofe-mail delivery, you may give your voting instructions to the Trustee on the internet or by telephone by following the instructions on your proxy/confidential voting instruction card, or you may give your voting instructions to the Trustee by mail by completing and returning the proxy/confidential voting instruction card accompanying this proxy statement.

Your instructions will tell the Trustee how to vote the number of shares of NextEra Energy common stock in the plan reflecting your proportionate interest in the NextEra Energy Stock Fund and the NextEra Energy Leveraged ESOP Fund. You have this right because the plan deems you to be a “named fiduciary” of the shares of common stock allocated to your account for voting purposes. Your instructions will also determine the vote of a proportionate number of shares of common stock in the NextEra Energy Leveraged ESOP Fund which are not yet allocated to participants. If you do not give the Trustee voting instructions, the number of shares reflecting your proportionate interest in the NextEra Energy Stock Fund and the NextEra Energy Leveraged ESOP Fund will be voted by the Trustee in the same manner as it votes proportionate interests for which it receives voting instructions and your proportionate share of the unallocated NextEra Energy Leveraged ESOP Fund shares will be voted by the Trustee in the same manner as it votes unallocated shares for which instructions are received. The Trustee will vote your shares in accordance with your duly executed instructions received by 11:59 p.m., Eastern time, on Monday, May 18, 2020.

You may also revoke previously given voting instructions by 11:59 p.m., Eastern time, on Monday, May 18, 2020, by filing written notice of revocation with the Trustee or by giving new voting instructions in any of the

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ways described above. The Trustee will follow the last timely voting instructions which it receives from you. Your voting instructions will be kept confidential by the Trustee.

What is “householding” and how does it affect me?

NextEra Energy has adopted a procedure approved by the SEC called “householding.” Under this procedure, shareholders of record who have the same address and last name and do not participate in electronic delivery of proxy materials will receive only one package containing individual copies of the Notice or proxy materials in paper form for each shareholder of record at the address. This procedure will reduce the volume of duplicate materials shareholders receive, conserve natural resources and reduce NextEra Energy’s postage costs. Shareholders who participate in householding and to whom a full set of proxy materials has been mailed will continue to receive separate proxy cards.

If you are a shareholder of record and are eligible for householding, but you and other shareholders of record with whom you share an address currently receive multiple packages containing copies of the Notice or proxy materials in paper form, or if you hold shares in more than one account, and in either case you wish to receive only a single package for your household in the future, please contact Computershare in writing at Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078 or by calling888-218-4392. You may contact Computershare at the same mailing address or telephone number if you wish to revoke your consent to future householding mailings.

If your household receives only a single package containing a copy of the Notice or the proxy materials, and you wish to receive a separate copy for each shareholder of record, please contact Broadridge toll-free at866-540-7095, or write to Broadridge, Householding Department, 51 Mercedes Way, Edgewood, NY 11717, and separate copies will be provided promptly.

Beneficial owners may request information about householding from their banks, brokers or other holders of record.

What vote is required to approve the matters proposed?

A nominee for director will be elected to the Board if the votes cast for such nominee’s election by shareholders present in person or represented by proxy at the meeting and entitled to vote on the matter exceed the votes cast by such shareholders against such nominee’s election. See the director resignation policy described inProposal 1 for information about NextEra Energy’s policy if a nominee for director fails to receive the required vote. All other voting items will be approved if the votes cast favoring the action exceed the votes cast opposing the action. Discretionary voting by brokers is only permitted for the ratification of the appointment of Deloitte & Touche as NextEra Energy’s independent registered public accounting firm for 2020. Brokernon-votes and abstentions will not affect the outcome or be counted as a vote cast in favor or against any of the other voting items presented.

Unless you give other instructions, the persons named as proxies will vote in accordance with the recommendations of the Board. The Board’s recommendations are set forth together with the description of each proposal in this proxy statement.

Who pays for the solicitation of proxies?

NextEra Energy is soliciting proxies and it will bear the expense of solicitation. Proxies will be solicited principally by mail and by electronic media, although directors, officers and employees of NextEra Energy or its subsidiaries may solicit proxies personally, by telephone or by electronic means, but without compensation other than their regular compensation. NextEra Energy has retained D.F. King & Co., Inc. to assist it in the solicitation of proxies, for which D.F. King & Co., Inc. will be paid a fee of $12,500 plus reimbursement ofout-of-pocket expenses. NextEra Energy will reimburse custodians, nominees and other persons for theirout-of-pocket expenses in sending the Notice and/or proxy materials to beneficial owners.

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Could other matters be decided at the annual meeting?

At the date of printing of this proxy statement, the Board did not know of any matters to be submitted for action at the annual meeting other than those referred to in this proxy statement and does not intend to bring before the meeting any matter other than the proposals described in this proxy statement. If, however, other matters are properly brought before the annual meeting, or any adjourned or postponed meeting, your proxies include discretionary authority on the part of the individuals appointed to vote your shares or act on those matters according to their discretion, including voting to adjourn or postpone the annual meeting one or more times to solicit additional proxies with respect to any proposal or for any other reason.

How can I submit a shareholder proposal for the 2021 annual meeting of shareholders?

Proposals on matters appropriate for shareholder consideration consistent with Rule14a-8 under the Exchange Act submitted by shareholders for inclusion in the proxy statement and form of proxy for the 20182021 annual meeting of shareholders must be received by the Corporate Secretary at the Company’s principal executive offices not later than November 27, 2017.December 4, 2020. The submission of such proposals by shareholders is subject to regulation by the SEC pursuant to Rule14a-8.

Under the Bylaws, a shareholder proposal submitted for consideration at the 20182021 annual meeting of shareholders, butnot for inclusion in NextEra Energy’s proxy statement and form of proxy, must be received by the Corporate Secretary no earlier than January 18, 201821, 2021 and no later than February 17, 2018.20, 2021. Proposals received before January 18, 201821, 2021 or after February 17, 201820, 2021 will be considered untimely and not properly presented. Notice of such proposals must contain the information specified in the Bylaws, including a brief description of the business desired to be brought before the meeting, the text of a proposal (if any), the reasons for conducting such businessavailable at the meeting, any material interest in such business of the shareholder and any beneficial owner of NextEra Energy’s securities on whose behalf the proposal is made, and a description of all agreements, arrangements or understandings between such shareholder and beneficial owner (if any) and any other persons (including the names of such persons) in connection with

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the proposal or such business.www.investor.nexteraenergy.com/corporate-governance. These advance notice, informational and other provisions are in addition to, and separate from, the requirements that a shareholder must meet in order to have a proposal included in NextEra Energy’s proxy statement and form of proxy under SEC regulations. SEC rules will permit management to vote proxies in their discretion, notwithstanding a shareholder’s compliance with the Bylaws, if NextEra Energy receives notice of the shareholder’s proposal before the close of business on February 17, 2018, NextEra Energy advises shareholders in the proxy statement for the 2018 annual meeting of shareholders about the nature of the matter proposed and how management intends to vote on such matter, and the proposing shareholder does not comply with certain provisions of the SEC’s proxy rules.

Shareholder proposals shouldmust be sent to the attention of the Corporate Secretary by mail (U.S. certified mail in the case of proposals required to comply with the advance notice provisions of the Bylaws), by personal delivery to NextEra Energy, Inc., P.O. Box 14000, 700 Universe Boulevard, Juno Beach, Florida 33408-0420 or by facsimile to561-691-7702.

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NO INCORPORATION BY REFERENCENo Incorporation by Reference

In the Company’s filings with the SEC, information is sometimes “incorporated by reference.” This means that the Company is referring you to information that has previously been filed with the SEC and the information should be considered as part of the particular filing. As provided under SEC rules, the “Audit Committee Report” and the “Compensation Committee Report” contained in this proxy statement will not be deemed to be “soliciting material” or “filed” with the SEC, except to the extent that the Company specifically requests that the information be treated as soliciting material or the Company specifically incorporates such information by reference into a document filed with the SEC. In addition, this proxy statement includes several website addresses. These website addresses are intended to provide inactive, textual references only. The information on, or accessible through, these websites is not part of this proxy statement.

SHAREHOLDER ACCOUNT MAINTENANCEShareholder Account Maintenance

NextEra Energy’s transfer agent is Computershare. All communications concerning accounts of NextEra Energy shareholders of record, including address changes, name changes, inquiries as to requirements to transfer shares of common stock and similar issues, can be handled by calling Computershare at888-218-4392 or by calling NextEra Energy Shareholder Services at800-222-4511. For other information about NextEra Energy, shareholders can visit NextEra Energy’s website atwww.nexteraenergy.com.www.nexteraenergy.com.

Regardless of the number of shares you own, it is important that your shares be represented at the annual meeting. Accordingly, the Company requests that you review the proxy materials and submit your proxy or voting instructions on the Internetinternet or by telephone at your earliest convenience by following the instructions on your Notice of Internet Availability of Proxy Materials. Alternatively, if you received your annual meeting proxy materials by mail, you may submit your proxy or voting instructions on the Internet, or by telephone or you may mark, date, signby marking, dating, signing and returnreturning the accompanying proxy/confidential voting instruction card.

By order of the Board of Directors.Directors,

W. Scott Seeley

Vice President, Compliance & Corporate Secretary

March 27, 2017

April 3, 2020

 

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APPENDIXAppendix A

NEXTERA ENERGY, INC.

2017 NON-EMPLOYEE DIRECTORS STOCK PLAN

As Amended and Restated as of May 18, 2017

Article I

Purpose

The NextEra Energy, Inc. 2017 Non-Employee Directors Stock Plan, effective as of the Amendment Date, is an amendment and restatement of the FPL Group, Inc. 2007 Non-Employee Directors Stock Plan. The purpose of the Plan is to further strengthen the alignment of interests between members of the Board of Directors of NextEra Energy, Inc. who are not employees of the Corporation and the Corporation’s shareholders through the increased ownership by non-employee directors of shares of the Corporation’s common stock.

Article II

Definitions

The following definitions shall apply for the purposes of the Plan, unless a different meaning is plainly indicated by the context:

Section2.1Amendment Date” means May 18, 2017, subjectReconciliations ofNon-GAAP to approval of the Plan by the Corporation’s shareholders on such date, the Plan having been approved by the Board on February 17, 2017.

Section2.2Beneficiarymeans the person designated by an Eligible Director to receive any Shares or other consideration with respect to Shares to be issued to such Eligible Director that become distributable following the Eligible Director’s death.

Section2.3Boardmeans the Board of Directors of the Corporation.

Section 2.4Code” means the Internal Revenue Code of 1986, as amended.

Section2.5Committeemeans the Committee described in Section 4.1.

Section2.6Corporationmeans NextEra Energy, Inc., a corporation organized and existing under the laws of the State of Florida, and any successor thereto.

Section2.7Disability means a condition of incapacity, mental or physical, for the performance of services which the Committee determines, on the basis of competent medical evidence, is likely to be permanent, to continue for an indefinite period of at least one hundred eighty (180) days, or to result in death.

Section2.8Dividend Equivalentmeans a right, granted to a Recipient under Section 5.4, to receive cash, Shares, or other property equal in value to dividends paid with respect to a specified number of Shares.

Section2.9Effective Date means May 25, 2007.

Section2.10Eligible Directoron any date means a member of the Board who is not a common-law employee of the Corporation.

Section2.11“Exchange Actmeans the Securities Exchange Act of 1934, as amended.

Section2.12Fair Market Valuemeans, with respect to a Share on a specified date: (a) the final reported sales price on the date in question (or if there is no reported sale on such date, on the last

A-1


preceding date on which any reported sale occurred) as reported in the principal consolidated reporting system with respect to securities listed or admitted to trading on the principal United States securities exchange on which the Shares are listed or admitted to trading, as of the close of the market in New York City and without regard to after-hours trading activity; or (b) if the Shares are not listed or admitted to trading on any such exchange, the closing bid quotation with respect to a Share on such date, as of the close of the market in New York City and without regard to after-hours trading activity, on the National Association of Securities Dealers Automated Quotations System, or, if no such quotation is provided, on another similar system, selected by the Committee, then in use; or (c) if Sections 2.12(a) and (b) are not applicable, the Fair Market Value of a Share as the Committee may determine in good faith.

Section2.13Grant Instrumentmeans any written agreement, in such written, electronic, or other form as determined by the Committee, between an Eligible Director and the Corporation evidencing his or her rights under the Plan. In the absence of such a written agreement, written resolutions of the Committee or the members of the Board who are independent directors adopted in accordance with the Plan evidencing the Eligible Director’s rights under the Plan shall be deemed a Grant Instrument.

Section2.14Non-Employee Directormeans a member of the Board who qualifies as a non-employee director for purposes of Rule 16b-3 promulgated under the Exchange Act or the corresponding provisions of any successor rule or regulation.

Section2.15Planmeans the NextEra Energy, Inc. 2017 Non-Employee Directors Stock Plan, as amended from time to time.

Section2.16Recipientmeans the person to whom Shares or Dividend Equivalents are issued under the Plan.

Section2.17Retirement” means termination of Service as a member of the Board pursuant to the Corporation’s mandatory retirement policy for non-employee directors as in effect from time to time.

Section 2.18Service means, unless the Committee provides otherwise in a Grant Instrument, service in any capacity as a common-law employee, consultant or non-employee director to the Corporation or a parent or subsidiary of the Corporation.

Section2.19Share means a share of common stock, par value $.01 per share, of NextEra Energy, Inc. In the event Shares are converted into or exchanged for other securities, or an adjustment is made under Section 6.4 which converts Shares available under the Plan into other securities, references to Shares shall include, as appropriate, references to such other securities.

Article III

Available Shares

Section3.1Shares Available under the Plan.Subject to Article VI, the maximum aggregate number of Shares which may be issued under Sections 5.1, 5.3, and 5.4 of the Plan on and after the Amendment Date shall be 500,000 Shares, including Shares previously granted under the Plan that remain subject to a forfeiture condition on the Amendment Date. Shares issued under the Plan may be either authorized and unissued shares, treasury shares or shares purchased in the open market.

Section3.2Computation of Shares Available.For purposes of Section 3.1, the number of Shares available under the Plan shall be (a) reduced by one (1) Share for each Share issued under Sections 5.1, 5.3, and 5.4, and (b) increased by one (1) Share for each Share forfeited pursuant to the terms of the Plan.

Article IV

Administration

Section4.1Committee.The Plan shall be administered by a committee of two or more individuals appointed by the Board who are Non-Employee Directors. Unless otherwise determined by the Board, the

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Compensation Committee shall act as the Committee hereunder. The members of the Committee shall serve at the discretion of the Board. Those members of the Board who are “independent directors” under the corporate governance standards of the principal national securities exchange on which the Corporation lists its securities may, in their discretion, take any action and exercise any power, privilege or discretion conferred on the Committee under the Plan with the same force and effect under the Plan as if done or exercised by the Committee. No member of the Committee or the independent directors shall participate in any action taken by such body under the Plan if he or she is personally affected thereby, unless all members of the Committee or independent directors, as applicable, are similarly affected.

Section4.2Committee Action.The Committee shall hold such meetings, and may make such administrative rules and regulations for the conduct of its meetings, as it may deem proper. A majority of the members of the Committee shall constitute a quorum, and the action of a majority of the members of the Committee present at a meeting at which a quorum is present, as well as actions taken pursuant to the written consent of a majority of all of the members of the Committee without holding a meeting, shall be deemed to be actions of the Committee. Any person dealing with the Committee shall be fully protected in relying upon any written notice, instruction, direction or other communication signed by the Secretary of the Committee and one member of the Committee, by two members of the Committee or by a representative of the Committee authorized to sign the same in its behalf.

Section4.3Committee Responsibilities.Subject to the terms and conditions of the Plan and such limitations as may be imposed by the Board, the Committee shall be responsible for the overall management and administration of the Plan and shall have plenary authority to carry out its responsibilities, including, without limitation, the authority: (a) to interpret the provisions of the Plan, and to determine all questions that may arise under the Plan; (b) to adopt rules and regulations and to prescribe forms for the operation and administration of the Plan; and (c) to take any other action not inconsistent with the provisions of the Plan that it may deem necessary or appropriate. All decisions, determinations and other actions of the Committee made or taken in accordance with the terms of the Plan shall, in the absence of manifest error, be final and conclusive and binding upon the Corporation and all other parties having an interest therein.

Article V

Full Value Shares

Section5.1Discretionary Grants.The Committee, in its discretion, may make a grant of Shares (or an interest in Shares, however denominated, to be settled in the future by delivery of Shares) to any one or more Eligible Directors as consideration for services rendered or promised to be rendered as a member of the Board or its committees at such times, for such number of Shares and on such other terms and conditions (including but not limited to restrictions on the voting and dividend rights associated with such Shares, service-related vesting, forfeiture provisions, holding period, and transfer restrictions) as the Committee may determine and may specify in a Grant Instrument. Unless the Committee determines otherwise and so specifies in a Grant Instrument, grants under this Section 5.1: (a) shall be in the form of issued and outstanding Shares registered in the name of the Eligible Director; (b) shall be fully vested and nonforfeitable when awarded; and (c) shall carry full voting and dividend rights in favor of the holder of record from the date of grant. Unless an Eligible Director requests otherwise, with the Committee’s consent, or the Committee determines otherwise, grants under this Section 5.1 shall be effected by direct registration of the Shares in a book-entry account on the Corporation’s stock transfer records established for the Eligible Director by the Corporation’s transfer agent. The Committee shall make such arrangements for control of Shares issued under this Section 5.1, or for the imposition of restrictions on certificates, book-entry accounts or other evidence of such Shares, as it deems necessary or appropriate to enforce the transfer restriction and other provisions of this Section 5.1 and any Grant Instrument.

Section5.2Voluntary Conversion of Cash Compensation.A Non-Employee Director may elect, at such time and in such manner as the Committee may prescribe, that all or any portion of his or her

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compensation for Service on the Board and its committees that, after the application of Section 5.1, is payable in cash be converted into and distributed to the Eligible Director in Shares of equivalent Fair Market Value. Notwithstanding the preceding, fractional Shares will not be payable under this Section 5.2 and any cash relating to a conversion that would result in a fractional Share shall instead be paid to the Eligible Director. The Committee shall determine the dates and frequency of such conversion and distribution. Shares distributed under this Section 5.2 shall be fully vested and nonforfeitable. Unless an Eligible Director requests otherwise, with the Committee’s consent, or the Committee determines otherwise, Share payments under this Section 5.2 shall be effected by direct registration of the Shares in a book-entry account on the Corporation’s stock transfer records established for the Eligible Director by the Corporation’s transfer agent.

Section5.3Awards to New Directors.The Committee, in its discretion, may make a one-time grant of Shares (or an interest in Shares, however denominated, to be settled in the future by delivery of Shares) to an Eligible Director after his or her first election or appointment to the Board for such number of Shares and on such other terms and conditions (including but not limited to restrictions on the voting and dividend rights associated with such Shares, service-related vesting, forfeiture provisions, holding period, and transfer restrictions) as the Committee may determine and may specify in a Grant Instrument. Unless the Committee determines otherwise and so specifies in a Grant Instrument, grants under this Section 5.3: (a) shall be in the form of issued and outstanding Shares registered in the name of the Eligible Director; (b) shall be fully vested and nonforfeitable when awarded; and (c) shall carry full voting and dividend rights in favor of the holder of record from the date of grant. Any such award shall be made within six (6) months after such Eligible Director is first elected or appointed to the Board. The Committee shall determine the number of Shares included in such award. Unless an Eligible Director requests otherwise, with the Committee’s consent, or the Committee determines otherwise, grants under this Section 5.3 shall be effected by direct registration of the Shares in a book-entry account on the Corporation’s stock transfer records established for the Eligible Director by the Corporation’s transfer agent. The Committee shall make such arrangements for control of Shares issued under this Section 5.3, or for the imposition of restrictions on certificates, book-entry accounts or other evidence of such Shares, as it deems necessary or appropriate to enforce the transfer restriction and other provisions of this Section 5.3 and any Grant Instrument.

Section5.4Dividend Equivalents.The Committee is authorized to grant Dividend Equivalents to Eligible Directors. The Committee may provide that Dividend Equivalents shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional Shares or awards, or otherwise reinvested.

Section5.5Deferral.Compensation payable under the Plan shall be eligible for deferral for federal (and, to the extent applicable, state and local) income tax purposes if and to the extent provided under a separate written deferred compensation plan of the Corporation that complies with the requirements of Section 409A of the Code and the regulations promulgated thereunder. The provisions of such deferred compensation plan shall determine, among other things, the dates as of which Shares issuable under the Plan shall be issued and/or transferred to the Eligible Director, and the dates as of which dividend, voting and other rights associated with such Shares shall attach, but in no event shall such dates be earlier than the corresponding dates that would apply under the Plan in the absence of a deferral election.

Section5.6Holding Period for Shares.Shares acquired by an Eligible Director pursuant to a grant made to such Eligible Director under Section 5.1 or 5.3 may not be sold or transferred by the Eligible Director so long as he or she remains a member of the Board;provided, however, that an Eligible Director may sell or transfer Shares in excess of the Shares required to be held according to the Corporation’s written stock ownership guidelines for Eligible Directors as specified from time to time in the Corporate Governance Principles and Guidelines.

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Article VI

Term, Amendment, Termination and Adjustments

Section6.1Term.The Plan originally became effective as of the Effective Date. The Plan, as amended and restated, shall become effective as of the Amendment Date.

Section 6.2Termination.The Board may suspend or terminate the Plan in whole or in part at any time prior to the tenth anniversary of the Amendment Date by giving written notice of such suspension or termination to the Committee. Unless sooner terminated, the Plan shall terminate automatically on the day preceding the tenth anniversary of the Amendment Date. In the event of any suspension or termination of the Plan, all awards theretofore granted under the Plan that are outstanding on the date of such suspension or termination shall remain outstanding for the period and on the terms and conditions set forth in any Grant Instruments evidencing such awards.

Section6.3Amendment.The Board may amend the Plan in whole or in part at any time; provided, however,that, the effectiveness of any such amendment to the Plan shall be contingent on approval of such amendment by the Corporation’s shareholders to the extent provided by the Board or required to comply with applicable laws or the rules or regulations established by any national securities exchange on which the Corporation lists or seeks to list Shares or other securities.

Section6.4Adjustments in the Event of Business Reorganization.In the event any recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, or exchange of Shares for other securities, stock dividend or other special and nonrecurring dividend or distribution (whether in the form of cash, securities or other property), liquidation, dissolution, or other similar corporate transaction or event, affects the Shares such that an adjustment is appropriate in order to prevent dilution or enlargement of the rights of Recipients under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (a) the number and kind of securities deemed to be available thereafter for issuances of Shares in the aggregate to all Eligible Directors and individually to any one Eligible Director and (b) the number and kind of securities that may be delivered or deliverable in respect of undistributed Shares. In addition, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in, grants of Shares (including, without limitation, cancellation of awards in exchange for the in-the-money value, if any, of the vested portion thereof, or substitution of Shares using stock of a successor or other entity) in recognition of unusual or nonrecurring events (including, without limitation, events described in the preceding sentence) affecting the Corporation or any parent or subsidiary or the financial statements of the Corporation or any parent or subsidiary, or in response to changes in applicable laws, regulations, or accounting principles.

Article VII

Miscellaneous

Section7.1Status as an Employee Benefit Plan.The Plan is not intended to satisfy the requirements for qualification under Section 401(a) of the Code or to satisfy the definitional requirements for an “employee benefit plan” under Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended. The Plan is intended to be exempt from the regulatory requirements of the Employee Retirement Income Security Act of 1974, as amended, and shall be construed and administered so as to effectuate this intent.

Section7.2No Right to Continued Service.Neither the establishment of the Plan nor any provisions of the Plan nor any action of the Board or the Committee with respect to the Plan shall be held or construed to confer upon any Eligible Director any right to a continuation of his or her position with the Corporation as a director or otherwise. The Corporation reserves the right to remove any participating member of the Board or terminate his or her Service in other capacities or change the terms and conditions of any such Service to the same extent it could do so if the Plan had not been adopted.

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Section7.3Construction of Language.Whenever appropriate in the Plan, words used in the singular may be read in the plural, words used in the plural may be read in the singular, and words importing the masculine gender may be read as referring equally to the feminine or the neuter. Any reference to an Article or Section number shall refer to an Article or Section of the Plan unless otherwise indicated. The headings of Articles and Sections are included solely for convenience of reference. If there is any conflict between such headings and the text of the Plan, the text shall control.

Section7.4Governing Law.The Plan shall be construed, administered and enforced according to the laws of the State of Florida without giving effect to the conflict of laws principles thereof. The federal and state courts located in Palm Beach County, Florida shall have exclusive jurisdiction over any claim, action, complaint or lawsuit brought under the terms of the Plan. By accepting any Shares granted under the Plan, each Eligible Director, and any other person claiming any rights under the Plan, agrees to submit himself, and any such legal action as he or she shall bring under the Plan, to the sole jurisdiction of such courts for the adjudication and resolution of any such disputes.

Section7.5Non-Alienation of Benefits.Except as expressly provided in the Plan, the right to receive a benefit under the Plan shall not be subject in any manner to anticipation, alienation or assignment, nor shall such right be liable for or subject to debts, contracts, liabilities, engagements or torts.

Section7.6Notices.Any communication required or permitted to be given under the Plan, including any notice, direction, designation, comment, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally or five (5) days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such party at the address listed below, or at such other address as one such party may by written notice specify to the other party: (a) if to the Committee: NextEra Energy, Inc., 700 Universe Boulevard, Juno Beach, FL 33408, Attention: Corporate Secretary; and (b) if to a Recipient or Beneficiary to the Recipient’s or Beneficiary’s address as shown in the Corporation’s records.

Section7.7Approval of Shareholders.The Plan shall be subject to approval by the Corporation’s shareholders. Any Shares granted prior to the date such approval is obtained shall be granted contingent on such approval and shall be void ab initio in the event such approval is not obtained.

Section7.8Designation of Beneficiary.An Eligible Director who has received an award may designate a Beneficiary to receive any payments or unvested Shares that become payable or vested on the date of his or her death. Such designation (and any change or revocation of such designation) shall be made in writing in the form and manner prescribed by the Committee. In the event that the Beneficiary designated by an Eligible Director dies prior to the Eligible Director, or in the event that no Beneficiary has been designated, any payments or vested Shares that become available for distribution on the Eligible Director’s death shall be paid to the executor or administrator of the Eligible Director’s estate, or if no such executor or administrator is appointed within such time as the Committee, in its sole discretion, shall deem reasonable, to such one or more of the spouse and descendants and blood relatives of such deceased person as the Committee may select.

Section7.9Conditions to the Issuance of Shares.The Corporation’s obligation to deliver Shares shall, if the Committee so requests, be conditioned upon the receipt of a representation as to the investment intention of the Eligible Director or Beneficiary to whom such Shares are to be delivered, in such form as the Committee shall determine to be necessary or advisable to comply with the provisions of applicable federal, state or local law. It may be provided that any such representation shall become inoperative upon a registration of the Shares or upon the occurrence of any other event eliminating the necessity of such representation. The Corporation shall not be required to deliver any Shares under the Plan prior to (a) the admission of such Shares to listing on any stock exchange on which Shares may then be listed, or (b) the completion of such registration or other qualification under any state or federal law, rule or regulation as the Committee shall determine to be necessary or advisable.

Section7.10Effect of Future Services.To the extent Shares are issued or issuable to an Eligible Director hereunder in consideration for the performance of future services, the Eligible Director’s

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performance of services for the Corporation after knowing such Shares have been issued, or after having a legally binding right to the issuance of Shares in the future, shall be deemed acceptance of such Shares or the future right to such Shares, as applicable.

Section7.11Compliance with Section 409A of the Code.To the extent that the Plan and/or Shares granted under the Plan are construed to be non-qualified deferred compensation plans described in Section 409A of the Code, the Plan and any Grant Instruments shall be operated, administered and construed so as to comply with the requirements of Section 409A. The Plan and any Grant Instruments shall be subject to amendment, with or without advance notice to Recipients and other interested parties, and on a prospective or retroactive basis, including, but not limited to, amendment in a manner that adversely affects the rights of Recipients and other interested parties, to the extent necessary to effect compliance with Section 409A of the Code.

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APPENDIX B

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL MEASURESFinancial Measures

The tables below present reconciliations of eachnon-GAAP financial measure to the most comparable GAAP financial measure for the years ended December 31, 20162019 and December 31, 2015.2018. See page 3836 of the Company’s Annual Report on Form10-K for the year ended December 31, 20162019 for the reasons the Company uses adjusted earnings.

Reconciliation of Adjusted Earnings to Net Income Attributable to NextEra Energy, Inc. to Adjusted Earnings

 

   2016  2015 
   (millions) 

Net Income Attributable to NextEra Energy, Inc.

 $2,912  $2,752 

Adjustments—pretax:

        

Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges

  108   (290

Other than temporary impairment losses—net

  5   21 

Resolution of contingencies related to a previous asset sale

  (9   

Gains on sale of natural gas generation facilities

  (445   

Operating loss (income) of Spain solar projects

  12   (5

Merger-related expenses

  135   26 

Less related income tax expense

  166   95 

Adjusted Earnings

 $2,884  $2,599 
   
   

2018

 

  

2019

 

 
   

(millions)

 

 
   

 

Net Income Attributable to NextEra Energy, Inc.

 

 $

 

6,638

 

 

 

 $

 

3,769

 

 

 

   

 

Adjustments:

 

  

 

    

 

 

 

  

 

    

 

 

 

   

 

 

Net losses associated with non-qualifying hedges

  

 

248

 

 

 

  

 

546

 

 

 

   

 

 

Change in unrealized losses (gains) on equity securities held in NEER’s nuclear decommissioning funds and OTTI-net

  

 

180

 

 

 

  

 

(249

 

 

   

 

 

Impact of income tax rate change on differential membership interests

  

 

(572

 

 

  

 

120

 

 

 

   

 

 

NEP investment gains-net

  

 

(3,786

 

 

  

 

(124

 

 

   

 

 

Operating loss (income) of Spain solar projects

  

 

1

 

 

 

  

 

(8

 

 

   

 

 

Acquisition-related

  

 

32

 

 

 

  

 

54

 

 

 

   

 

 

Less related income tax expense (benefit)

  

 

932

 

 

 

  

 

(46

 

 

   

 

Adjusted Earnings

 

 $

 

3,673

 

 

 

 $

 

4,062

 

 

 

Reconciliation of Adjusted Earnings Per Share to Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution)to Adjusted Earnings Per Share

 

   2016  2015 

Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution)

 $  6.25  $  6.06 

Adjustments—pretax:

        

Net unrealized mark-to-market losses (gains) associated with non-qualifying hedges

  0.23   (0.64

Other than temporary impairment losses—net

     0.05 

Resolution of contingencies related to a previous asset sale

  (0.02   

Gains on sale of natural gas generation facilities

  (0.95   

Operating loss (income) of Spain solar projects

  0.03   (0.01

Merger-related expenses

  0.29   0.06 

Less related income tax expense

  0.36   0.19 

Adjusted Earnings Per Share (assuming dilution)

 $6.19  $5.71 
   
   

2018

 

  

2019

 

 
   

(millions)

 

 
   

 

Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution)

 

 $

 

  13.88

 

 

 

 $

 

  7.76

 

 

 

   

 

Adjustments:

 

  

 

    

 

 

 

  

 

    

 

 

 

   

 

Net losses associated with non-qualifying hedges

 

  

 

0.50

 

 

 

  

 

1.12

 

 

 

   

 

Change in unrealized losses (gains) on equity securities held in NEER’s nuclear decommissioning funds and OTTI-net

 

  

 

0.38

 

 

 

  

 

(0.51

 

 

   

 

Impact of income tax rate change on differential membership interests

 

  

 

(1.17

 

 

  

 

0.25

 

 

 

   

 

NEP investment gains-net

 

  

 

(7.91

 

 

  

 

(0.26

 

 

   

 

Operating income of Spain solar projects

 

  

 

 

 

 

  

 

(0.02

 

 

   

 

Acquisition-related

 

  

 

0.07

 

 

 

  

 

0.11

 

 

 

   

 

Less related income tax expense (benefit)

 

  

 

1.95

 

 

 

  

 

(0.08

 

 

   

 

Adjusted Earnings Per Share (assuming dilution)

 

 $

 

7.70

 

 

 

 $

 

8.37

 

 

 

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NextEra Energy 2020 Annual Meeting

Hyatt Regency Hill Country

9800 Hyatt Resort Drive

San Antonio, TX 78251

 

B-1


LOGOLOGO

 

From North:

Start out going south on I-380/IA-27.Follow I-44 and US-281 to Texas 151 Access Rd W in San Antonio. Take Exit 13the exit toward the Eastern Iowa Airport/Ely. Turn left onto County Hwy E70/Wright Brothers Boulevard SW. Turn left onto Kirkwood Boulevard SW. Turn right onto 76th Avenue Drive SW. The main entranceWestover Hills Blvd from TX-151 W. Follow Texas 151 Access Rd W to The Hotel at Kirkwood CenterHyatt Resort Dr. Hyatt Regency Hill Country Resort & Spa will be on the right.right-hand side.

Alternatively: I-10 E/US-87 S. Take TX-1604 Loop W to Texas 151 Access Rd E in San Antonio. Take the exit toward Westover Hills Blvd from TX-151E. Continue to Texas 151 Access Rd E. Take Westover Hills Blvd and Rogers Rd to Hyatt Resort Dr. Hyatt Regency Hill Country Resort & Spa will be on the left-hand side.

 

From South:

Start out going north on I-380 N/US-218 N/IA-27 N.Follow I-37 N to Texas 151 Access Rd W in San Antonio. Take Exit 13the exit toward the Eastern Iowa Airport/Ely. Turn right onto County Hwy E70/Wright Brothers Boulevard SW. Turn left onto Kirkwood Boulevard SW. Turn right onto 76th Avenue Drive SW. The main entranceWestover Hills Blvd from TX-151 W. Follow Texas 151 Access Rd W to The Hotel at Kirkwood CenterHyatt Resort Dr. Hyatt Regency Hill Country Resort & Spa will be on the right.right-hand side.

 

From East:

Start out going west on US-30W.Follow I-10 W to Texas 151 Access Rd W in San Antonio. Take the exit 254 for C Street SW toward Ely/County Road. Turn right and continue on C StreetWestover Hills Blvd from TX-151 W. Follow Texas 151 Access Rd SW. Turn right onto 76th Avenue Drive SW. Continue approximately 1 mile and the main entranceW to The Hotel at Kirkwood CenterHyatt Resort Dr. Hyatt Regency Hill Country Resort & Spa will be on the left.right-hand side.

 

From West:

Start out going east on UW-30E.Follow US-90 E to Texas 151 Access Rd W in San Antonio. Take the exit 253 for Kirkwood Boulevard/Bowling Street. Turn left onto Kirkwood Boulevard SW. Turn left onto 76th Avenue Drive SW. The main entrancetoward Westover Hills Blvd from TX-151 W. Follow Texas 151 Access Rd W to The Hotel at Kirkwood CenterHyatt Resort Dr. Hyatt Regency Hill Country Resort & Spa will be on the right.right-hand side.


LOGO

700 UNIVERSE BOULEVARD

JUNO BEACH, FL 33408

LOGO

VOTE BY INTERNET -www.proxyvote.com/NEE or scan the QR Barcode above

Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 p.m. Eastern time the day before the cut-off date or meeting date. Follow the instructions to obtain your records and to create an electronic voting instruction form.

ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS

If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years.

VOTE BY PHONE - 800-690-6903

Use any touch-tone telephone to transmit your voting instructions up until 11:59 p.m. Eastern time the day before the cut-off date or meeting date. Have your proxy/confidential voting instruction card in hand when you call and then follow the instructions.

VOTE BY MAIL

Mark, sign and date your proxy/confidential voting instruction card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.

LOGO

TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:

E22998-P91440                         KEEP THIS PORTION FOR YOUR RECORDS

DETACH AND RETURN THIS PORTION ONLY

THIS PROXY/CONFIDENTIAL VOTING INSTRUCTION CARD IS VALID ONLY WHEN SIGNED AND  DATED.

700 UNIVERSE BOULEVARD JUNO BEACH, FL 33408
VOTE BY INTERNET—www.proxyvote.com/NEE or scan the QR Barcode above
Use the Internet to transmit your voting instructions and for electronic delivery of information. Vote by 11:59 p.m. Eastern time on May 20, 2020 for shares held directly and by 11:59 p.m. Eastern time on May 18, 2020 for shares held in a Plan. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.
ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS
If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically viae-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years.
VOTE BYPHONE—800-690-6903
Use any touch-tone telephone to transmit your voting instructions. Vote by 11:59 p.m. Eastern time on May 20, 2020 for shares held directly and by 11:59 p.m. Eastern time on May 18, 2020 for shares held in a Plan. Have your proxy card in hand when you call and then follow the instructions.
VOTE BY MAIL
Mark, sign and date your proxy/confidential voting instruction card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge,
51 Mercedes Way, Edgewood, NY 11717.
TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:
D05964-P36701-Z76606 KEEP THIS PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLY
THIS PROXY/CONFIDENTIAL VOTING INSTRUCTION CARD IS VALID ONLY WHEN SIGNED AND DATED.
NEXTERA ENERGY, INC.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” ALL THE NOMINEES LISTED:
1. Election as directors of the nominees specified in the proxy statement
Nominees: For Against Abstain
1a. Sherry S. Barrat ! ! ! For Against Abstain 1b. James L. Camaren ! ! ! 1l. William H. Swanson ! ! ! 1c. Kenneth B. Dunn ! ! ! 1m. Darryl L. Wilson ! ! !
1d. Naren K. Gursahaney ! ! ! THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE For Against Abstain “FOR” PROPOSALS 2 AND 3:
1e. Kirk S. Hachigian ! ! ! 2. Ratification of appointment of Deloitte & Touche LLP as ! ! ! NextEra Energy’s independent registered public accounting firm for 2020 1f. Toni Jennings ! ! !
3. Approval, bynon-binding advisory vote, of NextEra Energy’s
1g. Amy B. Lane ! ! ! compensation of its named executive officers as disclosed in the ! ! ! proxy statement
1h. David L. Porges ! ! ! THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE For Against Abstain “AGAINST” PROPOSALS 4 AND 5:
1i. James L. Robo ! ! ! 4. A proposal entitled “Political Contributions Disclosure” to request ! ! ! semiannual reports disclosing political contribution policies and expenditures 1j. Rudy E. Schupp ! ! !
5. A proposal entitled “Right to Act by Written Consent” to request
1k. John L. Skolds action by written consent of shareholders
The proxies are also authorized to vote in their discretion upon such other business as may properly be brought before the meeting or any adjournment(s) or postponement(s) thereof.
The shares represented by this proxy/confidential voting instruction card when properly executed will be voted in the manner directed herein by the undersigned. If no direction is made, this proxy/confidential voting instruction card will be voted FOR all nominees listed in proposal 1, FOR proposals 2 and 3 and AGAINST proposals 4 and 5. If any other matters properly come before the meeting or any adjournment(s) or postponement(s) thereof, the persons named in this proxy/the trustee will vote in their/its discretion.
Please sign your name exactly as it appears hereon. When signing as attorney, executor, administrator, trustee or guardian, please add your title as such. When signing as joint tenants, all parties in the joint tenancy must sign. If a signer is a corporation, please sign in full corporate name by duly authorized officer.
Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date

NEXTERA ENERGY, INC.

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR ALL THE NOMINEES LISTED:

1.Election as directors of the nominees specified in the proxy statement

Nominees:

ForAgainstAbstain

1a.    Sherry S. Barrat

1b.    James L. Camaren

1c.    Kenneth B. Dunn

1d.    Naren K. Gursahaney

1e.    Kirk S. Hachigian

1f.    Toni Jennings

1g.   Amy B. Lane

1h.    James L. Robo

1i.   Rudy E. Schupp

1j.    John L. Skolds

1k.   William H. Swanson

1l.    Hansel E. Tookes, II

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE “FOR” PROPOSALS 2 AND 3:

ForAgainstAbstain
2.

Ratification of appointment of Deloitte & Touche LLP as NextEra Energy’s independent registered public accounting firm for 2017

3.

Approval, by non-binding advisory vote, of NextEra Energy’s compensation of its named executive officers as disclosed in the proxy statement

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE FOR “1 YEAR” ON PROPOSALS 4:

1 Year2 Years3 YearsAbstain
4.

Non-binding advisory vote on whether NextEra Energy should hold a non-binding shareholder advisory vote to approve NextEra Energy’s compensation to its named executive officers every 1, 2 or 3 years

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE “FOR” PROPOSAL 5:

ForAgainstAbstain
5.

Approval of the NextEra Energy, Inc. 2017 Non-Employee Directors Stock Plan

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE “AGAINST” PROPOSAL 6:

ForAgainstAbstain
6.

A proposal by the Comptroller of the State of New York, Thomas P. DiNapoli, entitled “Political Contributions Disclosure” to request semiannual reports disclosing political contribution policies and expenditures

The proxies are also authorized to vote in their discretion upon such other business as may properly be brought before the meeting or any adjournment(s) or postponement(s) thereof.

The shares represented by this proxy/confidential voting instruction card when properly executed will be voted in the manner directed herein by the undersigned.If no direction is made, this proxy/confidential voting instruction will be voted FOR all nominees listed in proposal 1, FOR proposals 2, 3 and 5, “1 YEAR” on proposal 4 and AGAINST proposal 6. If any other matters properly come before the meeting or any adjournment(s) or postponement(s) thereof, the persons named in this proxy/the trustee will vote in their/its discretion.

Please sign your name exactly as it appears hereon. When signing as attorney, executor, administrator, trustee or guardian, please add your title as such. When signing as joint tenants, all parties in the joint tenancy must sign. If a signer is a corporation, please sign in full corporate name by duly authorized officer.

Signature [PLEASE SIGN WITHIN BOX]DateSignature (Joint Owners)Date

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LOGOLOGO

Annual Meeting Admission Ticket


Admission: This ticket, along with a form of picture

identification, admits the named shareholder(s).


Security: For the safety of attendees, all boxes,

handbags and briefcases are subject to inspection.


NextEra Energy, Inc.’s 20172020 Annual Meeting of Shareholders will be

held at 8:00 a.m. Central time on May 18, 2017, in the Ballroom21, 2020, at the HotelHyatt Regency Hill Country at Kirkwood Center

at 7725 Kirkwood Boulevard SW, Cedar Rapids, Iowa.

9800 Hyatt Resort Drive, San Antonio, Texas.
If you plan to attend the Annual Meeting of Shareholders, please

bring this Admission Ticket. If you require special assistance, call

NextEra Energy Shareholder Services at800-222-4511.


Note: As part of our precautions regarding the coronavirus orCOVID-19, we are planning for the possibility that the 2020 annual meeting may be held virtually over the internet. If we decide to hold a virtual annual meeting, we will announce the decision to do so in advance and details on how to participate will be issued by press release, posted on our website and filed with the SEC as additional proxy material.
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE SHAREHOLDER MEETING TO BE HELD ON MAY 18, 2017:

21, 2020: The proxy statement and annual report to security holders are available atwww.proxyvote.com/NEE
D05965-P36701-Z76606
NEXTERA ENERGY, INC.
PROXY AND CONFIDENTIAL VOTING INSTRUCTION Annual Meeting ofShareholders-May 21, 2020
This proxy is solicited on behalf of the Board of Directors. The shareholder(s) signing on the reverse side hereby appoint(s) W. Scott Seeley and Charles E. Sieving, and each of them, proxies, with full power of substitution, and hereby authorize(s) them to represent and to vote all shares of Common Stock, par value $.01 per share, of NextEra Energy, Inc. (“Common Stock”) that such shareholder(s) would be entitled to vote at the Annual Meeting of Shareholders of NextEra Energy, Inc. to be held May 21, 2020, and any adjournment(s) or postponement(s) thereof, upon the matters referred to on this proxy and, in their discretion, upon any other business that may properly be brought before the meeting or any adjournment(s) or postponement(s) thereof.
This confidential voting instruction card is solicited on behalf of the Trustee (as hereinafter defined) of the Plan (as hereinafter defined). The participant or beneficiary in the NextEra Energy, Inc. Employee Retirement Savings Plan (“Plan”) signing on the reverse side, acting as a named fiduciary, hereby provides the voting instructions specified to the trustee of the Plan (the “Trustee”), which instructions shall be kept confidential and shall be taken into account by the Trustee in voting, in person, by limited or general power of attorney, or by proxy, the shares and fractional shares of Common Stock that are held by the Trustee, in its capacity as Trustee of the Plan, as of March 23, 2020, at the Annual Meeting of Shareholders of NextEra Energy, Inc. to be held on May 21, 2020, and at any adjournment(s) or postponement(s) thereof. As a named fiduciary, the participant has the right to direct the Trustee how to vote the shares allocated to the participant in the NextEra Energy Stock Fund and NextEra Energy Leveraged ESOP Fund. The Trustee must follow the participant’s directions, except in limited circumstances. As a named fiduciary, the participant, and not the Trustee, will be responsible for the consequences of the voting directions given. As to the proposals listed on the reverse side, which are more particularly described in the Proxy Statement, the voting instructions on this confidential voting instruction card will instruct the Trustee how to vote the number of shares of Common Stock reflecting the participant’s proportionate interest in the NextEra Energy Stock Fund and the NextEra Energy Leveraged ESOP Fund. The instructions will also determine the vote on a proportionate number of shares of Common Stock in the NextEra Energy Leveraged ESOP Fund which are not yet allocated to participants. If the participant does not give the Trustee voting instructions, the number of shares reflecting the participant’s proportionate interest in the NextEra Energy Stock Fund and NextEra Energy Leveraged ESOP Fund will be voted by the Trustee in the same manner as it votes proportionate interests for which it receives voting instructions and a proportionate share of the unallocated NextEra Energy Leveraged ESOP Fund shares will be voted by the Trustee in the same manner as it votes unallocated shares for which instructions are received.

E22999-P91440      

NEXTERA ENERGY, INC.

PROXY AND CONFIDENTIAL VOTING INSTRUCTION

Annual Meeting ofShareholders-May 18, 2017

This proxy is solicited on behalf of the Board of Directors. The shareholder(s) signing on the reverse side hereby appoint(s) John W. Ketchum and Charles E. Sieving, and each of them, proxies, with full power of substitution, and hereby authorize(s) them to represent and to vote all shares of Common Stock, par value $.01 per share, of NextEra Energy, Inc. (“Common Stock”) that such shareholder(s) would be entitled to vote at the Annual Meeting of Shareholders of NextEra Energy, Inc. to be held May 18, 2017, and any adjournment(s) or postponement(s) thereof, upon the matters referred to on this proxy and, in their discretion, upon any other business that may properly be brought before the meeting or any adjournment(s) or postponement(s) thereof.

This confidential voting instruction is solicited on behalf of the Trustee (as hereinafter defined) of the Plan (as hereinafter defined). The participant or beneficiary in the NextEra Energy, Inc. Employee Retirement Savings Plan (“Plan”) signing on the reverse side, acting as a named fiduciary, hereby provides the voting instructions specified to the trustee of the Plan (the “Trustee”), which instructions shall be kept confidential and shall be taken into account by the Trustee in voting, in person, by limited or general power of attorney, or by proxy, the shares and fractional shares of Common Stock that are held by the Trustee, in its capacity as Trustee of the Plan, as of March 23, 2017, at the Annual Meeting of Shareholders of NextEra Energy, Inc. to be held on May 18, 2017, and at any adjournment(s) or postponement(s) thereof. As a named fiduciary, the participant has the right to direct the Trustee how to vote the shares allocated to the participant in the NextEra Energy Stock Fund and NextEra Energy Leveraged ESOP Fund. The Trustee must follow the participant’s directions, except in limited circumstances. As a named fiduciary, the participant, and not the Trustee, will be responsible for the consequences of the voting directions given. As to the proposals listed on the reverse side, which are more particularly described in the Proxy Statement, the voting instructions on this Confidential Voting Instruction Card will instruct the Trustee how to vote the number of shares of Common Stock reflecting the participant’s proportionate interest in the NextEra Energy Stock Fund and the NextEra Energy Leveraged ESOP Fund. The instructions will also determine the vote on a proportionate number of shares of Common Stock in the NextEra Energy Leveraged ESOP Fund which are not yet allocated to participants. If the participant does not give the Trustee voting instructions, the number of shares reflecting the participant’s proportionate interest in the NextEra Energy Stock Fund and NextEra Energy Leveraged ESOP Fund will be voted by the Trustee in the same manner as it votes proportionate interests for which it receives voting instructions and a proportionate share of the unallocated NextEra Energy Leveraged ESOP Fund shares will be voted by the Trustee in the same manner as it votes unallocated shares for which instructions are received.

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