AMERICAN ELECTRIC POWER CO INC
For the period ended Apr 29, 2025. Filed Mar 13, 2025.
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What shareholders are asked to vote on at a company's meeting. It is where to find what directors and top executives are paid, and who owns the most shares.
Apr 29, 2025 · Filed Mar 13, 2025
Contents
Executive Compensation Program Detail
Summary of Executive Compensation Components. The following table summarizes the major components of the Company’s executive compensation program.
| Component | Purpose | |||
|---|---|---|---|---|
| Base Salary | • | To provide a market-competitive and consistent minimum level of compensation that is paid throughout the year. | ||
| Annual IncentiveCompensation | •• | To focus and align executives' efforts with the Company's objectives for the year.For 2024, the HR Committee approved performance measures with the following weights: | ||
| • | Operating Earnings Per Share (60 percent weight) | |||
| • | Safety (20 percent weight) | |||
| • | Compliance (5 percent weight) | |||
| • | Affordability (5 percent weight) | |||
| • | Reliability (5 percent weight) | |||
| • | Employee Engagement (5 percent weight) | |||
| Long-TermIncentiveCompensation | • | To motivate management to create sustainable shareholder value by linking a substantial portion of their potential compensation directly to longer-term shareholder returns. | ||
| • | To help ensure that management remains focused on longer-term results, which the HR Committee considers essential given the large amount of long-term investment in physical assets required in our business. | |||
| • | To reduce executive turnover and maintain management consistency. | |||
Base Salary. The HR Committee determines base salary increases for our named executive officers based on the following factors:
The performance of the executive during the previous year.
The market-competitiveness of the executive’s base salary, total cash compensation and total compensation.
The Company’s salary increase budget.
The current scope and responsibilities of the position.
Internal comparisons.
The experience and potential of each executive.
The impact on our business of an executive's departure.
Effective April 1, 2024, base salary increases averaging 3.7 percent were provided to the named executive officers, other than Mr. Fehrman, who was not yet employed by AEP, Mr. Fowke, whose compensation had recently been set for the Interim President and CEO position, and Ms. Sloat, who exited the Company shortly thereafter. The HR Committee established Mr. Fehrman’s salary as President and CEO at $1,500,000 effective upon his August 1, 2024 hire date, and Mr. Fowke’s salary for the Interim President and CEO position at $1,600,000 effective upon his February 26, 2024 hire date.
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