| Percent of Total Compensation | |||||||||||
| Component | Description | CEO | Other NEO Avg. | ||||||||
| Base Salary Fixed, paid in cash | Target middle of competitive range of peer group, with adjustments for trade area economics, turnover, tenure, and experience | 25% | 44% | ||||||||
| Annual Cash Incentive Variable, paid in cash | Based on net income, safety, reliability, and customer satisfaction metrics and individual performance | 25% | 22% | ||||||||
| Long-Term Incentive Program Award Variable or at risk, paid in equity | 70 percent performance share units, based on EPS, ROAE and relative TSR performance over a three-year performance period and 30 percent restricted share units vesting over a three-year restricted period. | 50% | 34% | ||||||||
| 2023 Annual Cash Incentive Outcome | 77% | Long-Term Incentive Program Vesting in 2023 | 28% | ||||||
| For our executives, the funding (as a percentage of target) under the annual incentive plan has ranged from 74 percent to 136 percent for the five previous years, as illustrated in the table to the right. | Historical Funding of Annual Cash Incentive (as a percentage of target) | ||||||||||||||||||||||
| 2018 | 2019 | 2020 | 2021 | 2022 | |||||||||||||||||||
| 136% | 126% | 74% | 106% | 96% | |||||||||||||||||||
| For many years, including 2023, the annual incentive plan has used four categories of performance measures to determine the plan funding percentage – financial, safety, reliability, and customer satisfaction. The relative weightings of these measures are set forth in the graphic to the left. In order for any awards under the 2023 annual incentive plan to be earned and paid out, the Company must attain at least 90 percent of the budgeted net income target, which coincides with the threshold net income target for the plan. This metric for determining performance against our financial goal is derived from our audited financial statements. | |||||||||||||||||||||||
| 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annual Incentive Plan Information | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Performance Measures | Weight (% of Total Plan Payout) | Performance Level | Target % Achieved | Final Funding % of Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Threshold | Target | Maximum | Actual Achieved | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial (55%) (1) | Net Income ($ in millions) | 55 | % | $191.0 | $ | 212.3 | $ | 233.5 | $194.1 | 57.3 | 31.5 | Safety (15%) (2) | Lost Time Incident Rate | 5 | % | 0.56 | 0.46 | 0.23 | 0.45 | 102.2 | 5.1 | Total Recordable Incident Rate | 5 | % | 1.75 | 1.49 | 1.05 | 1.34 | 117.0 | 5.9 | Safety Training Completion | 5 | % | 99.0 | % | 99.5 | % | 100.0 | % | 100.0 | % | 149.6 | 7.5 | Reliability (15%) (3) | SAIDI (excluding major event days) | 5.0 | % | 116.00 | 102.00 | 89.00 | 88.80 | 150.0 | 7.5 | SAIDI (including major event days) | 5.0 | % | 165.00 | 122.00 | 94.00 | 94.80 | 148.6 | 7.4 | Gas – Leaks per 100 Miles of Main | 2.5 | % | 14.60 | 10.00 | 6.80 | 9.60 | 106.4 | 2.7 | Gas – Damages per 1000 Locates | 2.5 | % | 3.80 | 3.00 | 1.20 | 3.10 | 96.3 | 2.4 | Customer Satisfaction (15%) (4) | J.D. Power Residential Electric and Gas Survey Performance Ranking | 5 | % | 720.00 | 730.00 | 734.00 | 696.80 | — | — | Operational Performance – Customer Survey by Flynn Wright | 5 | % | 33.48 | 37.20 | 40.92 | 35.20 | 73.1 | 3.7 | Reputational Perceptions – Customer Survey by Flynn Wright | 5 | % | 32.17 | 35.75 | 39.32 | 33.40 | 66.5 | 3.3 | TOTAL FUNDING PERCENTAGE | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
