Latest News

Dominion Energy reduces CEO's cash pay-out on long-term goals

Dominion Energy reduces CEO's cash pay-out on long-term goals

Dominion Energy's CEO Robert Blue lost out on more than $4 Million in cash when the utility failed to achieve its performance targets for shareholder return and operating profits during 2022-2024.

Blue disclosed in a filing with the U.S. Securities and Exchange Commission on Friday that it had received $438.240, or just 9%, of the target payout. The company said the target payout was nearly $5 million. The company didn't respond to a request for comment.

Dominion's shareholder return was the second lowest of all peers during this 3-year period. This resulted in no payout for that goal. The 50% of Blue’s performance-based compensation target came from that goal. The company's return on total assets was negative 21% over that time period.

Analysts claim that Dominion stock fell during the period of performance as investors lost faith in the management team. Dominion took several steps to reduce its debt, including selling its Cove Point Liquefied Natural Gas Plant to Berkshire Hathaway. The sale netted about $3.3 billion after tax.

Dominion expects its electricity sales to increase over the next ten years as the company builds more data centers in Virginia, which are energy-hungry.

Blue did not receive any long-term pay for performance related to Dominion’s operating profit goal of 2022-2024. Dominion reported that with a performance-weighting of 40% the operating profit per share came to $8.87. This was well below the threshold of $11.70.

Dominion exceeded its minimum renewable energy target, despite the fact that fewer solar power projects were completed during the performance period. Blue received 9% of the target cash payout for the three goals with a weighting of 10%.

(source: Reuters)