WEC Energy Group (WEC, Financial) has outlined its performance measures for the 2025 plan year, impacting the annual incentive compensation for its named executive officers (NEOs). The company's Compensation Committee has established a framework under the WEC Energy Group Short-Term Performance Plan (STPP) and the Performance Unit Plan (PUP) to align executive incentives with financial and operational goals.
For the 2025 annual incentive under the STPP, the performance of WEC Energy Group will be primarily evaluated based on earnings per share (EPS) and cash flow, with a respective weighting of 75% and 25%. Additionally, awards may be adjusted by up to 10% based on performance in customer satisfaction, safety, and diversity metrics.
For NEOs involved in utility operations in Wisconsin, the incentive structure includes a 50% weighting on the net income of WEC Energy Group's Wisconsin utility operations, alongside a 25% weighting each for EPS and cash flow. Adjustments of up to 10% can also be made based on operational and social performance metrics specific to Wisconsin operations.
Under the PUP, the 2025 performance unit awards will be determined by the company's total shareholder return over a three-year period compared to a custom peer group (55% weighting) and the weighted average authorized return on equity of WEC Energy's utility subsidiaries (45% weighting). The stock price to earnings ratio compared to peers is an additional measure that can enhance the vesting percentage by up to 25%, with a maximum vesting cap at 200% of the target award.
These measures reflect WEC Energy Group's commitment to aligning executive compensation with shareholder interests and operational excellence, ensuring that leadership is incentivized to drive financial performance and strategic growth.
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