Wec Energy Group, Inc. · NYSE:WEC
Wec Energy — Investor Presentation (September 2016)
23 slides from Wec Energy's investor presentation, Sep 7, 2016
Slide 1: Corporate governance overview
Corporate governance overview • Company overview • Leadership team • Governance practices • Executive compensation program • Environmental and social performance
Slide 2: Our corporate strategy is to create long-term value
2WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW “ Our corporate strategy is to create long-term value by focusing on the fundamentals: world-class reliability, operating efficiency and financial discipline. In addition, we keep our customers at the heart of the business, work every day to help gro
Slide 3: Company overview
• WEC Energy Group formed when Wisconsin Energy Corp. acquired Integrys Energy Group in June 2015 • Leading electric and natural gas utility in the Midwest • Eighth largest natural gas distribution company in the country • One of the 15 largest investor-owned utility systems in the United States • M
Slide 4: WEC Energy Group is formed
4WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW WEC Energy Group is formed Wisconsin Energy Corp. acquired Integrys Energy Group on June 29, 2015. Completed transaction in 53 weeks. Combined two companies with origins dating back to the 1800s. » More than a century of operating history. ELECTRIC D
Slide 5: An energy industry leader
5WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW WEC Energy Group, an energy industry leader WEC Energy Group is one of the nation’s largest electric and natural gas delivery companies with deep operational expertise, scale and financial resources to meet the region’s future energy needs. WEC Energ
Slide 6: Shareholder returns - track record of performance
6WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW Shareholder returns - track record of performance Over the past decade, WEC Energy Group has consistently delivered among the best total returns in the industry. One Year Three Year Five Year Ten Year 300% 250% 200% 150% 100% 50% 0% 254.8%— WEC Energ
Slide 7: Leadership team
• Board is led by non-executive chairman and independent presiding director • New CEO appointed from within the company, effective May 1, 2016 • Non-executive chairman served as CEO for prior 13 years • Experienced leadership team, many having worked together for more than 10 years Leadership team
Slide 8: WEC Board of Directors
8WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW WEC Energy Group Board of Directors The board of directors strategically acted to separate the offices of chief executive officer and chairman of the board as a component of its management succession planning. The board is now led by a non-executive
Slide 9: Allen L. Leverett named chief executive officer
9WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW Allen L. Leverett named chief executive officer effective May 1, 2016 Allen Leverett was named president of WEC Energy Group in June 2015 and chief executive officer in May 2016. He was appointed to the board of directors in January 2016. Experience
Slide 10: Leadership team
10WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW Leadership team Leverett is supported by a seasoned leadership team. Seven of his 11 direct reports have been with the company more than 10 years. Kevin Fletcher President WI Utilities Joined company in 2011 Scott Lauber EVP and Chief Financial Offi
Slide 11: Governance practices
• One of the earliest adopters of formal corporate governance guidelines • Commonsense Principles of Corporate Governance benchmarking • Regular assessment of board experience and qualifications incorporated into active succession-planning processes • Experientially skilled and diverse board of dire
Slide 12: Commonsense Principles and WEC practices
12WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW COMMONSENSE PRINCIPLES WEC ENERGY GROUP PRACTICES Board composition/internal governance ✔ • 11 of 13 independent directors • Annual election of directors since 2005 • Board committee structure/service evaluated annually • Stockholders can nominate d
Slide 13: Board experientially skilled and diverse
13WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW 6 OF 6 9 OF 13 11 OF 13 Audit committee members are financial experts new directors elected in the past four years Directors are current or former CEOs 3 6 2 Directors are women Directors are African American Directors are independent FINANCIAL E XP
Slide 14: Governance practices evolve with shareholder input
14WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW Governance practices evolve with shareholder input At the May 2016 annual meeting, shareholders approved the board proceeding to adopt a proxy access bylaw. • Ownership threshold • Ownership duration • Nominating group size limit • Cap (max percent
Slide 15: Executive compensation program
• Includes short- and long-term components • Program design links pay to performance measures • Substantial portion of compensation is at risk • Recent changes to program components as a result of shareholder input Executive compensation program
Slide 16: Independent compensation committee administers the program
16WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW Experienced, independent compensation committee administers the program • Compensation committee chair has attained the National Association of Corporate Directors top designation of Board Leadership Fellow • All members of compensation committee ar
Slide 17: Compensation incentive program
17WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW Compensation incentive program The company’s executive compensation program is tied to short- and long-term incentives with a substantial portion at-risk. 12% 57% 18% 31% Annual base salary Annual base salary Total variable incentive pay 8 8% Total
Slide 18: Environmental and social performance
• Balance the delivery of safe, reliable and affordable energy with a commitment to protecting the environment • Follow a multi-emission strategy to achieve greater environmental benefit for lower cost • Goal of reducing CO2 emissions by approximately 40 percent below 2005 levels by 2030 • Strategic
Slide 19: Guiding principles of our environmental commitment
19WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW GUIDING PRINCIPLES OF OUR ENVIRONMENTAL COMMITMENT Practice responsible environmental stewardship of all properties and natural resources entrusted to our management. Support research and implement new technologies for emissions control, energy effi
Slide 20: Supporting a clean energy future
20WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW Supporting a clean energy future Over the past decade, WEC Energy Group has implemented a multi-emission strategy to achieve greater environmental benefit for lower cost. 120% 100% 80% 60% 40% 20% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Slide 21: More than a decade of turning principles into action
21WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW More than a decade of turning principles into action • Retired 11 coal-fueled generating units on our system, totaling 652 megawatts (MW). • Added two combined-cycle natural gas units totaling 1,090 MW that replaced coal-fueled power generation. • C
Slide 22: Social performance measures
22WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW Since 2004, WEC Energy Group has strategically linked management annual incentive compensation to operational goals that include the following social performance measures: 2015 employee safety* • Safest year in company history • Injuries down 85 per
Slide 23: Forward-looking information
23WEC ENERGY GROUP | CORPORATE GOVERNANCE OVERVIEW Much of the information contained in this presentation is forward-looking information based upon management’s current expectations and projections that involve risks and uncertainties. Forward-looking information includes, among other things, inform
WEC Energy Group — Investor Presentation (September 2016) on 6ix