UNITED STATES | ||
SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 | ||
SCHEDULE 14A | ||
Proxy Statement Pursuant to Section 14(a) of | ||
the Securities Exchange Act of 1934 (Amendment No. ) |
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This proxy statement contains information related to the solicitation of proxies by the Board of Directors (the Board) of NorthWestern Corporation d/b/a NorthWestern Energy (NorthWestern, the company, we, us, or our) in connection with our |
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON The Notice of Annual Meeting, Proxy Statement, and Shareholders are available on the internet at www.proxyvote.com. | ||||
Notice of March 7, Dear Fellow NorthWestern Corporation Shareholder: You are cordially invited to attend the At the meeting, shareholders will be asked to elect the Board of Directors, to ratify the appointment of our independent registered public accounting firm for YOUR VOTE IS IMPORTANT. We urge you to read this proxy statement carefully. Whether or not you plan to attend the virtual annual meeting, For details on how to access the virtual annual meeting, please see the information under the caption “Attending the Annual Meeting Virtually” in the proxy statement. If you are unable to attend our virtual annual meeting, Thank you for your continued support of NorthWestern Corporation. | ||||||||||||||
Very truly yours, | ||||||||||||||
Robert C. Rowe | ||||||||||||||
3010 West 69th Street|Sioux Falls, SD 57108 NorthWesternEnergy.com |
Table of Contents | ||||||||||||||
Proxy Statement Glossary (inside back cover) | ||||||||||||||
Meeting Date: | April | ||||||||||
Meeting Time: | 10:00 a.m. Mountain Daylight Time | ||||||||||
Location: | |||||||||||
Record Date: | February |
Board Recommendation | ||||||||
Proposal | Page | |||||||
1 | Election of eight directors | FOR each director nominee | ||||||
2 | Approval of Deloitte & Touche LLP as the Independent Registered Accounting Firm for 2018 | FOR | ||||||
3 | Advisory Vote to Approve Named Executive Officer Compensation | FOR |
Board Recommendation | ||||||||||||||||||||||||||
Proposal | Page | |||||||||||||||||||||||||
1 | Election of Directors | FOR each director nominee | ||||||||||||||||||||||||
2 | Ratification of Deloitte & Touche LLP as Independent Registered Public Accounting Firm for 2022 | FOR | ||||||||||||||||||||||||
3 | Advisory Vote to Approve Named Executive Officer Compensation | FOR |
3010 West 69th Street|Sioux Falls, SD 57108 | NorthWesternEnergy.com |
Proxy Summary Items of Business | ||||||||||||||||||||||||||||||||||||||
Proposal | Board Recommendation | Page | ||||||||||||||||||||||||||||||||||||
1 | Election of Directors | FOR each director nominee | ||||||||||||||||||||||||||||||||||||
2 | Ratification of Deloitte & Touche LLP as Independent Registered Public Accounting Firm for 2022 | FOR | ||||||||||||||||||||||||||||||||||||
3 | FOR | |||||||||||||||||||||||||||||||||||||
2021 Executive Pay Overview Alignment of Pay with Shareholder and Customer Interests Our executive pay program is designed to align the long-term interests of our executives, shareholders, and customers. Approximately 79 percent of the compensation of our CEO and about 63 percent of the compensation of our other named executive officers is at risk in the form of performance-based incentive awards. Our Board establishes the metrics and targets for these incentive awards, based upon advice from the Board’s independent compensation consultant. The 2021 performance metrics did not change from 2020. We also require our executives to retain meaningful ownership of our stock (from 2x to 6x their annual base salary). This compensation structure encourages our executives to focus on short- and long-term performance and provides a reward to our executives, shareholders, and customers when we achieve our financial and operating objectives. Our CEO to median employee pay ratio for 2021 was 28 to 1. | ||||||||||||||||||||||||||||||||||||||
Executive Pay Components at a Glance | ||||||||||||||||||||||||||||||||||||||
Percent of Total Compensation | ||||||||||||||||||||||||||||||||||||||
Component | Description | CEO | Other NEO Avg. | Changes in 2021 | ||||||||||||||||||||||||||||||||||
Base Salary Fixed, paid in cash | Target middle of competitive range of peer group, with adjustments for trade area economics, turnover, tenure, and experience | 21% | 36% | Named executive officers received the same 1.5 percent cost of living adjustment provided to employees; two named executive officers received additional increases related to promotions | ||||||||||||||||||||||||||||||||||
Annual Cash Incentive Variable, paid in cash | Based on net income, safety, reliability, and customer satisfaction metrics and individual performance | 21% | 20% | Updated performance targets; target incentive increased for two named executive officers to reflect promotions | ||||||||||||||||||||||||||||||||||
Long-Term Incentive Program Awards Variable, paid in equity | Based on earnings per share, return on average equity and relative total shareholder return performance over a three-year vesting period | 46% | 35% | Updated performance targets; target incentive increased for two named executive officers to align with market median and for two additional named executive officers to reflect promotions | ||||||||||||||||||||||||||||||||||
Executive Retention / Retirement Program Awards Variable, paid in equity | Based on net income performance over a five-year vesting period; paid over five-year period following separation from service | 12% | 9% | Increased target opportunity for one named executive officer to align with market and for two named executive officers to reflect promotions | ||||||||||||||||||||||||||||||||||
Proxy Summary Items of Business to Be Considered at the Annual Meeting | ||||||||||||
Proposal | Board Recommendation | Page | ||||||||||
1 | FOR each director nominee | |||||||||||
2 | FOR | |||||||||||
3 | FOR | |||||||||||
2017 Executive Pay Overview Alignment of Pay with Shareholder and Customer Interests Our executive pay program is designed to align the long-term interests of our executives, shareholders, and customers. About 78 percent of the compensation of our chief executive officer, or CEO, and about 58 percent of the compensation of our other named executive officers is at risk in the form of performance-based incentive awards that use Board-established metrics and targets, based upon advice from the Board’s independent compensation consultant. Other than the addition of a safety training metric, the performance metrics did not change from the prior year. We also require our executives to retain meaningful ownership of our stock. This structure encourages our executives to focus on short- and long-term performance and provides a reward to our executives, shareholders, and customers when we achieve our financial and operating objectives. Our CEO to median employee pay ratio for 2017 was 23:1. | ||||||||||||
Executive Pay Components at a Glance | ||||||||||||
Percent of Total Compensation | ||||||||||||
Component | Description | CEO | Other NEO Avg. | Changes in 2017 | ||||||||
Base Salary Fixed, paid in cash | Target middle of competitive range of peer group, with adjustments for trade area economics, turnover, tenure, and experience | 22% | 42% | One executive received 3.00 percent increase; CEO and remaining executives received 2.75 percent cost of living adjustment provided to all employees | ||||||||
Annual Cash Incentive Variable, paid in cash | Based on net income, safety, reliability, and customer satisfaction metrics and individual performance | 22% | 18% | Updated performance targets; added safety training metric; CEO target opportunity increased to align with market median | ||||||||
Long-Term Incentive Program Awards Variable, paid in equity | Based on earnings per share, return on average equity and relative total shareholder return performance over a three-year vesting period | 44% | 32% | Increased target opportunity for one executive to align with market median; no change to performance metrics; updated performance targets | ||||||||
Executive Retention / Retirement Program Awards Variable, paid in equity | Based on net income performance over a five-year vesting period; paid over five-year period following separation from service | 11% | 9% | No change in 2017 | ||||||||
Proxy Summary |
Performance Against Incentive Targets In 2017, we managed our business through warmer than average winter weather and achieved all-time high customer satisfaction and near all-time high safety performance, while providing shareholders a 17.4 percent return for the three‑year period ending December 31, 2017, which lagged our peer group. As a result, we achieved near target performance for our 2017 annual incentive awards and below target performance for our long-term incentive awards. | |||||||||||||||
2017 Annual Cash Incentive Outcome | 2015 Long-Term Incentive Program Vesting | ||||||||||||||
Financial (55%) – % of Target Achieved | 93 | % | ROAE / Avg. Net Inc. Growth – % of Target Achieved | 35 | % | ||||||||||
Safety (15%) – % of Target Achieved | 107 | % | Relative TSR – % of Target Achieved | 10 | % | ||||||||||
Reliability (15%) – % of Target Achieved | 95 | % | Total Payout to Participants* | 45 | % | ||||||||||
Customer Sat. (15%) – % of Target Achieved | 116 | % | |||||||||||||
Total Funding | 99 | % | * Each component weighted 50% for total payout | ||||||||||||
Shareholder Feedback on Executive Pay At our 2017 annual meeting, our 2016 named executive officer pay program was approved by 99.2 percent of the votes cast. In light of the overwhelming approval from our shareholders, we have not changed the overall structure of our named executive officer pay program for 2017. We continue to use the same executive pay components and operate within the parameters previously approved by our shareholders. 2017 Corporate Governance Overview Our Board has nominated eight individuals for election. We list all nominees on the following page in Proposal No. 1—Election of Directors. Last year, shareholders elected our eight director nominees by at least 99 percent of the votes cast. Our ninth current Board member, Dr. E. Linn Draper, Jr., announced in February 2018 that he would be retiring as a Board member and would not be seeking re-election at this year’s annual meeting. As a result of his announcement, our Board has elected Mr. Stephen P. Adik, current chair of our Audit Committee, to serve as non-executive chair of the Board following Dr. Draper’s retirement, subject to Mr. Adik’s election to serve as a director at our 2018 annual meeting. Each of our Board members and nominees is independent, with the sole exception of our CEO. Our Board currently is led by an independent non-executive chair, and our three Board committees – Audit; Compensation; and Governance – are chaired by and composed entirely of independent directors. Following Dr. Draper’s retirement, our Board will continue to be led by an independent non-executive chair. In addition, diversity is important to our Board, as reflected in the graphs below regarding our slate of nominees. We made no material changes to our corporate governance practices in 2017. | |||||||||||||||
Diverse Slate of Director Nominees | |||||||||||||||
Proposal No. 1 Election of Directors | |||||||||
The Board of Directors recommends you vote “FOR” each of the eight director nominees. | The Board of Directors recommends you vote “FOR” each of the eight director nominees. | Our Board is nominating eight people for election as directors at the annual meeting. All of the nominees currently serve as a director of our Board. After election, nominees will serve for one year, until the next annual meeting of shareholders (or until a successor is able to serve). Our nominees are listed below, and we provide additional background information and individual qualifications for each nominee in the Corporate Governance—Individual Directors section of this proxy statement, beginning on page 44. | |||||||
Name Occupation | Independent | Age | Director Since | Committee Membership | |||||
Stephen P. Adik Retired Vice Chair, NiSource, Inc. | Yes | 74 | 2004 | Audit (Chair); Comp. | |||||
Anthony T. Clark Senior Advisor, Wilkinson Barker Knauer, LLP; former Commissioner, FERC and NDPSC (and Chair) | Yes | 46 | 2016 | Gov. | |||||
Dana J. Dykhouse CEO, First PREMIER Bank | Yes | 61 | 2009 | Comp. (Chair); Audit | |||||
Jan R. Horsfall CEO, Maxletics Corporation | Yes | 57 | 2015 | Audit; Gov. | |||||
Britt E. Ide President, Ide Energy & Strategy; Executive Director, Yellowstone Club Community Foundation | Yes | 46 | 2017 | Gov. | |||||
Julia L. Johnson President, NetCommunications, LLC; former Commissioner and Chair, Florida PSC | Yes | 55 | 2004 | Gov. (Chair); Comp. | |||||
Robert C. Rowe President and CEO, NorthWestern Energy | No | 62 | 2008 | N/A | |||||
Linda G. Sullivan Executive Vice President and CFO, American Water | Yes | 54 | 2017 | Audit | |||||
Performance Against Incentive Targets In 2021, we continued to manage our business through the challenges of the COVID-19 pandemic and increased our net income from 2020, while investing a record amount of capital and continuing strong employee safety and strong customer satisfaction. For the three-year period ending December 31, 2021, we achieved an average return on equity of 8.7 percent and a total shareholder return of 5.9 percent, while our EPS growth rate was negative 1.36 percent. Despite the challenges associated with the pandemic, we achieved target performance for our 2021 annual incentive awards, but we failed to achieve target for our long-term incentive awards, as reflected in the tables below. | |||||||||||||||||||||||||||||||||||||||||
2021 Annual Cash Incentive Outcome | 2019 Long-Term Incentive Program Vesting | ||||||||||||||||||||||||||||||||||||||||
Financial (55%) – % of Target Achieved | 112 | % | ROAE / Avg. EPS Growth – % of Target Achieved | 90 | |||||||||||||||||||||||||||||||||||||
Safety (15%) – % of Target Achieved | 110 | % | Relative TSR – % of Target Achieved | 55 | % | ||||||||||||||||||||||||||||||||||||
Reliability (15%) – % of Target Achieved | 91 | % | Total Payout to Participants* | 73 | % | ||||||||||||||||||||||||||||||||||||
Cust. Sat. (15%) – % of Target Achieved | 94 | % | |||||||||||||||||||||||||||||||||||||||
Total Funding | 106 | % | * Each component weighted 50% for total payout | ||||||||||||||||||||||||||||||||||||||
Shareholder Feedback on Executive Pay At our 2021 virtual annual meeting, shareholders approved our 2020 named executive officer pay by 98.7 percent of the votes cast. In light of the overwhelming approval from our shareholders, we have not changed the overall structure of our named executive officer pay program for 2021. We continue to use the same executive pay components and operate within the parameters our shareholders previously approved. ESG Sustainability Over the past 100 years, we have maintained our commitment to provide our customers with reliable and affordable electric and natural gas service while also being good stewards of the environment. We have an obligation to ensure sustainable long-term strategies and practices to meet today’s needs while preparing for tomorrow’s demands. Thus, we have responded to climate change, its implications, and risks by increasing our environmental sustainability efforts and our access to clean energy resources. But more must be done. In 2021, we continued working together to deliver a bright future by maintaining our focus on environmental, social, and governance (ESG) sustainability. We supported our ESG efforts with a cross-functional committee of company leaders, chaired by our president and chief operating officer, to identify opportunities to effectively communicate our ESG story and transition to a cleaner energy future. Our Board oversees our ESG sustainability efforts and initiatives and has designated responsibilities for various components of ESG to the Board’s Compensation, Governance, or Operations committees. On at least a quarterly basis, management informs the Board and its committees of our progress on various ESG initiatives that we believe are material to our business. We have released publicly numerous ESG sustainability reports, together with other information on ESG issues relevant to NorthWestern, on our website via our Sustainability Portal at NorthWesternenergy.com/about-us/environmental-social-governance. As part of that Sustainability Portal, we publish our Key Sustainability Statistics Report, Environmental Stewardship Report, corporate policies addressing ESG-related matters, and various ESG reporting frameworks. Our website and these ESG reports and related website content are not incorporated by reference into this proxy statement. We currently have several ESG initiatives underway, including: •Environment. With our recent announcement, we have committed to Net Zero by 2050 for our Scope one and two electric and natural gas emissions. We believe we can achieve our emissions reduction commitment through incremental steps regarding a diverse and balanced generation portfolio; energy efficiency programs; grid and gas infrastructure modernization; electrification of fleet vehicles; our sustainable procurement committee; and other measures. During 2021, we mapped our | |||||||||||||||||||||||||||||||||||||||||
ESG efforts to the Sustainability Accounting Standards Board (SASB) framework, and by the end of 2022, we anticipate addressing the expanded voluntary reporting framework regarding climate related information developed by the Taskforce on Climate-related Financial Disclosure (TCFD). •Social. We care for our employees and communities. We continue to promote our safety culture and value the diversity of thought, background, culture, perspective, and experience our employees bring to our business. We provide challenging opportunities to accompany competitive and equitable compensation and benefits, while developing our future leaders and taking care of our retired employees. We partner with our communities to support charitable contributions and sustainable economic development in our service territories. •Governance.Our governance practices are sound, as demonstrated by our ranking as the 5th best utility for governance practices by Moody’s Investor Service. Our Board is diverse from several perspectives and is led by an independent chair. Our dedication to strong governance is demonstrated through the descriptions of our governance practices in this proxy statement. | ||||||||||||||
Oversight of ESG Our Board has general oversight of our ESG initiatives and has delegated oversight responsibility with respect to certain ESG components to several of the Board’s Committees, as reflected formally in committee charters and depicted in the illustration below. During 2021, management presented, at least quarterly, to the Board or applicable Committee(s) regarding our ESG initiatives. For years, safety has been a standing agenda item at our Board and Committee meetings, and in 2021, ESG reporting and diversity, equity and inclusion efforts became additional standing agenda items. We anticipate that our Board and its committees will continue to take an active role as our ESG strategy, policies, programs, and public reporting evolve. In addition to Board oversight of ESG matters, our executive team established in 2020 an internal, cross-functional ESG Committee, led by our president and chief operating officer, as a central coordinating body to facilitate our ESG strategy and reporting efforts. Our ESG Committee serves as a crucial central depository and coordinator of our company-wide ESG efforts. The illustration below depicts how we oversee ESG issues at NorthWestern. | ||||||||||||||
Proxy Summary |
ESG Reporting | ||||||||||||||||||||
Although we have been providing information about matters related to ESG for many years, it was not part of a formal or coordinated process until we established our internal ESG Committee in 2020. That committee centralized all aspects of reporting that could be considered to be related to ESG and, in 2021, finished a large disclosure project designed to gather ESG information, synthesize it into a publicly available report, and work with ESG ratings providers to ensure that the ratings we were receiving were based upon complete and accurate information. We focused on two providers during the first half of 2021 and improved our ratings as a result of those efforts. Following that initial push, our committee expanded its efforts and published reports aligned with the ESG reporting requirements for SASB. Since September 2021, our reporting has been SASB compliant. Recently, we issued our Net Zero by 2050 report and announced our commitment to transition to an even cleaner energy future with net zero carbon and methane emissions by 2050. The Net Zero by 2050 report summarizes the incremental steps we will take and the investments we have identified that will allow us to build upon the substantial progress we already have made and transition to an even cleaner energy future. Implications of climate change mean we must continue to increase NorthWestern Energy’s environmental sustainability and create an even cleaner portfolio of electric and gas resources and infrastructure for our customers and communities. Net Zero by 2050 is achievable for our electric and natural gas business by responsibly taking incremental steps toward this goal and maintaining our commitment to reliable, affordable, environmentally sustainable service capable of meeting the needs of all customers. On the heels of our Net Zero by 2050 report, our next target will be to address the TCFD reporting framework. Although we have not finalized our analysis concerning the TCFD framework, we anticipate completing this work by the end of 2022 and can offer our preliminary thoughts regarding the four pillars of TCFD. | ||||||||||||||||||||
TCFD Pillar | Recommended Disclosure | NorthWestern Response | ||||||||||||||||||
Governance Disclose the organization’s governance around climate-related risks and opportunities. | Describe the board’s oversight of climate-related risks and opportunities. | The charters for our Board’s Compensation, Governance, and Operations Committees formalize the board’s oversight of ESG-related matters. The Governance Committee has primary oversight of ESG reporting and governance, the Operations Committee has specific oversight of environmental and other operational concerns, and the Compensation Committee oversees various human capital and social matters. In addition to the charters, our 2021 and 2022 proxy statements and our Net Zero by 2050 report discuss these oversight responsibilities. | ||||||||||||||||||
Describe management’s role in assessing and managing climate-related risks and opportunities. | ||||||||||||||||||||
To learn more about our sustainability and ESG efforts, as well as the various reports mentioned in this ESG Reporting summary, please visit the Sustainability Portal which can be found on our public website and is located at NorthWesternenergy.com/about-us/environmental-social-governance. Our Net Zero by 2050 report is available at NorthWesternenergy.com/NetZero. Our website, the Sustainability Portal, the Net Zero by 2050 report, other reports mentioned in this ESG Sustainability summary, and related website content are not incorporated by reference into this proxy statement. | ||||||||||||||||||||
TCFD Pillar | Recommended Disclosure | NorthWestern Response | ||||||||||||||||||
Strategy Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material. | Describe the climate-related risks and opportunities the organization has identified over the short, medium and long term. | Our Net Zero by 2050 report highlights that we, like the rest of the regulated energy industry, have been transitioning our generation portfolio to cleaner resources to reduce emissions. We have made considerable progress with that transition through the addition of owned and contracted carbon‑free resources and currently have a generation portfolio that is 56% carbon-free, significantly better than the electric industry’s 40% equivalent measure. | ||||||||||||||||||
Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning. | As noted in our Net Zero by 2050 report, we see significant opportunity to continue to invest in assets to support our clean energy transition. However, legislative and regulatory support of this transition will be necessary to ensure recovery of new investment and appropriate treatment on recovery of our existing fossil fuel resources in the event these resources are retired in advance of their planned useful life. | |||||||||||||||||||
Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C scenario. | The Electric Business portion of our Net Zero by 2050 report details our preliminary portfolio analysis and its alignment with the Paris Accord (2°C scenario). In summary, to help make informed resource planning decisions in line with the 2°C goal, NorthWestern has referenced two studies completed by the Electric Power Research Institute (EPRI) to assess scenarios and pathways for the | |||||||||||||||||||
Risk Management Disclose how the organization identifies, assesses and manages climate-related risks. | Describe the organization’s processes for identifying and assessing climate-related risks. | We deploy a robust ERM program developed nearly 20 years ago. This program is overseen by an executive ERM committee that has identified wild fire as the largest climate-related risk we currently experience. Over the last decade, we have made significant investment to clear hazard trees in heavily forested areas, especially focusing on those areas infested with mountain pine beetles. Those areas often have standing dead trees that are at a much higher risk of falling into our transmission and distribution power lines and sparking fire. In addition, with warmer temperatures and reduced precipitation, we are experiencing longer fire seasons. Both forested and prairie grass fires pose a risk to us and our customers and communities. We continue to expand our fire mitigation activities to address these risks while also hardening our system against other physical and cyber related threats. | ||||||||||||||||||
Describe the organization's processes for managing climate-related risks. | ||||||||||||||||||||
Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization's overall risk management. | ||||||||||||||||||||
Proxy Summary |
TCFD Pillar | Recommended Disclosure | NorthWestern Response | ||||||||||||||||||
Metrics and Targets Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. | Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. | We utilize several different frameworks to disclose our climate related metrics, including the industry specific templates developed in collaboration with the Edison Electric Institute and the American Gas Association. These reports can be found on the Sustainability Portal on our website. | ||||||||||||||||||
Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 GHG emissions and the related risks. | While our Net Zero 2050 report announces a target that is specific to our Scope 1 and 2 emissions, we will continue to identify and assess our Scope 3 emissions. However, we currently believe there are too many complexities and variables outside our control to establish any Scope 3 targets at this time. | |||||||||||||||||||
Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. | Our Net Zero by 2050 report describes the targets we are using to manage climate-related risks and opportunities and the incremental steps we will take as we transition to a cleaner energy future. | |||||||||||||||||||
Environmental Sustainability | ||||||||||||||||||||
With our recent Net Zero by 2050 announcement, we committed to build upon the considerable progress we have already made with respect to our electricity portfolio and transition to an even cleaner energy future. Today, our total portfolio of electric generation is approximately 56% carbon-free, which is higher than the national electric utility average of 40%, and our natural gas system has a leak per mile rate that also beats the industry average thanks to our investments in pipe infrastructure and leak detection capabilities. But more must be done. During the last 10 years, nearly all the owned assets we have put into service are carbon‑free resources. In 2014, NorthWestern Energy bought Montana hydro facilities, adding 446 megawatts of clean generation to our portfolio. These facilities are the backbone of our generation fleet in that state. We built or bought more than | ||||||||||||||||||||
130 megawatts of wind facilities in both Montana and South Dakota. These clean resources have reduced our Scope 1 carbon emissions significantly over the last decade. Implications of climate change mean we must continue to increase our environmental sustainability and create an even cleaner portfolio of electric and gas resources and communities. Net Zero by 2050 is achievable for our electric and natural gas business by responsibly taking incremental steps toward this goal and maintaining our commitment to reliable, affordable, environmentally sustainable service capable of meeting the needs of all customers. | ||||||||||||||||||||
NorthWestern Energy - 2021 Electric Portfolio | ||||||||||||||||||||
55.9% Carbon-Free Electricity Portfolio from Owned and Long-Term Contract Resources - Based on MWHs | ||||||||||||||||||||
U.S. Electric Utilities - 2020 Net Electric Generation | ||||||||||||||||||||
39.9% Carbon-Free U.S. Electric Utilities Net Generation - Based on MWHs | ||||||||||||||||||||
Source: EIA.gov Table 7.2b Electric Net Generation: U.S. Electric Power Sector - 2020 | ||||||||||||||||||||
Proxy Summary |
Net Zero by 2050 | |||||||||||||||||||||||
Electric Operations | Carbon-Free Resources Continue transition to a carbon-free portfolio | Natural Gas Plants Gas plants needed to offset intermittency of renewable energy and will ultimately transition to peak load only | Fossil Fuel Transition Retire coal plants the earlier of depreciable life or when no longer cost effective | ||||||||||||||||||||
Natural Gas Operations | Pipeline Modernization Replace aging pipe and other infrastructure to minimize leaks | Enhanced Leak Detection Use technology to improve leak detection and expand plant emission monitoring | Development of Alternative Fuels Renewable natural gas and/or Hydrogen | ||||||||||||||||||||
Other Actions | Partner with customers on emissions reductions Enhance energy efficiency programs, expand green energy offering and develop other solutions for customers | Electric Vehicles Convert fleet to electric over time and develop infrastructure to support EVs | Carbon Offsets Utilize carbon offsets as necessary | ||||||||||||||||||||
Social Sustainability | |||||||||||||||||||||||
We care for our employees, retirees and communities. We continue to promote our safety culture and value the diversity of thought, background, culture, perspective, and experience our employees bring to our business. We provide challenging opportunities to accompany competitive and equitable compensation and benefits, while developing our future leaders. This includes an integrated learning and performance management system that includes annual performance reviews that link goals and competencies together so that managers are able to provide a holistic view to employees in regards to their performance against goals as well as key competencies as they relate to their role in the organization. This process provides opportunities to develop and enhance skills and knowledge, and enables our employees to grow professionally and perform their duties in a safe and efficient manner. We partner with our communities, supporting charitable contributions and sustainable economic development in our service territories. During 2021, we began a diversity, equity, and inclusion initiative that included unconscious bias training for our team of managers, and our Governance Committee made diversity, equity, and inclusion a standing agenda item at each of its meetings as it oversees our human capital efforts. We continue to maintain a diverse workforce, with an executive team that is 44% female and a board of directors that is 38% female and has one ethnically diverse member (13%). In addition, the | |||||||||||||||||||||||
Governance Sustainability | |||||||||||||||||||||||
Our governance practices are sound, as demonstrated by our ranking as the 5th best utility for governance practices by Moody’s Investor Service. We have provided details concerning our governance practices in the We have nominated eight individuals for election | |||||||||||||||||||||||
Proxy Summary |
Proposal No. 1 Election of Directors | |||||||||||||||||||||||||||||
The Board of Directors recommends you vote “FOR” each of the eight director nominees. | Our Board is nominating eight people for election as directors at the annual meeting. All of the nominees currently serve as a director of our Board. Elected directors will serve for one year, until the next annual meeting of shareholders (or until a successor is able to serve). Our nominees are listed below, and we provide additional background information and individual qualifications for each nominee in the Corporate Governance—Individual Directors section of this proxy statement, beginning on page 50. Unless you specifically withhold your authority to vote for the election of directors, the persons named in the accompanying proxy intend to vote “FOR” the election of each of the director nominees. | ||||||||||||||||||||||||||||
Name Occupation | Independent | Age | Director Since | Committee Membership | |||||||||||||||||||||||||
Anthony T. Clark Senior Advisor, Wilkinson Barker Knauer, LLP; former Commissioner, FERC and NDPSC (and Chair) | Yes | 50 | 2016 | Comp.; Gov. | |||||||||||||||||||||||||
Dana J. Dykhouse CEO, First PREMIER Bank | Yes | 65 | 2009 | Independent Board Chair | |||||||||||||||||||||||||
Jan R. Horsfall Managing Partner, Red Surfboard, LLC | Yes | 61 | 2015 | Operations (Chair); Audit | |||||||||||||||||||||||||
Britt E. Ide President, Ide Energy & Strategy | Yes | 50 | 2017 | Comp.; Gov. | |||||||||||||||||||||||||
Robert C. Rowe Chief Executive Officer, NorthWestern Energy | No | 66 | 2008 | N/A | |||||||||||||||||||||||||
Linda G. Sullivan Retired Executive Vice President and CFO, American Water | Yes | 58 | 2017 | Audit (Chair); Operations | |||||||||||||||||||||||||
Mahvash Yazdi President, Feasible Management Consulting | Yes | 70 | 2019 | Comp. (Chair); Operations | |||||||||||||||||||||||||
Jeffrey W. Yingling Partner, Energy Capital Ventures | Yes | 62 | 2019 | Audit; Gov. (chair) | |||||||||||||||||||||||||
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All nominees have advised the Board that they are able and willing to serve as directors. If any nominee becomes unavailable for any reason (which is not anticipated), the shares represented by the proxies may be voted for such other person or persons as may be determined by the holders of the proxies (unless a proxy contains instructions to the contrary). In no event will the proxy be voted for more than eight nominees. Board Nomination Process Our Board values the diversity of its members. When selecting this slate of nominees, our Board concluded these nominees will provide insight from a number of perspectives based on their diversity with respect to gender, age, ethnicity, skills and background, as well as location of residence. We believe these varied perspectives expand the Board’s ability to provide relevant guidance to our business. Our Board also concluded that these individuals bring extensive professional experience from both within and outside our industry. This diversity of experience provides our Board with a broad collective skill set which is advantageous to the Board’s oversight of our company. While the industry-specific expertise possessed by certain of the nominees is essential, we also will benefit from the viewpoints of directors with expertise outside our industry. Over the past several years, our Governance Committee has led our Board through a director succession planning process to allow for a smooth and gradual transition from our longer tenured directors while preserving the culture of the Board. The process reviews individual skill sets and tenures of current members and considered additional skills that could be beneficial for the Board in the future, with a particular focus on company strategy, emerging risks, and a diversity of perspectives. Our Board recommends a vote “FOR” election of each of the nominees. Vote Required Directors will be elected by a favorable vote of a plurality of the shares of voting stock present at the virtual annual meeting or by proxy and entitled to vote, | |||||||||||||||||||||||
Board Diversity | |||||||||||||||||||||||
Items of Business |
Proposal No. 2 Ratification of Deloitte & Touche LLP, as Independent Registered Public Accounting Firm for 2022 | ||||||||||||||||||||||||||||||||
The Board of Directors recommends you vote “FOR” the ratification of Deloitte as our independent accounting firm for 2022. | Our Audit Committee oversees the integrity of our accounting, financial reporting and auditing processes. To assist with those responsibilities, the committee has appointed Deloitte & Touche LLP as our independent registered public accounting firm to audit our financial statements for 2022. The Board is asking you to ratify the committee’s decision at the annual meeting. The Board values your input on the committee’s appointment of Deloitte, but approval by shareholders is not required by law. If shareholders do not ratify the appointment of Deloitte, the committee will reconsider its selection. Regardless of the voting result, the committee may appoint a new firm at any time if the committee believes a change would be in the best interests of the company and its shareholders. Deloitte representatives will be present at the annual meeting. They will have the opportunity to make a statement if they desire to do so and are expected to be available to respond to appropriate questions. Description of Fees The table below presents a summary of the fees Deloitte billed us for professional services for the fiscal years ended December 31, 2020 and 2021. | |||||||||||||||||||||||||||||||
Fee Category | 2020 Fees ($) | 2021 Fees ($) | ||||||||||||||||||||||||||||||
Audit fees | 1,324,144 | 1,339,144 | ||||||||||||||||||||||||||||||
Audit-related fees | — | 199,300 | ||||||||||||||||||||||||||||||
Tax fees | 108,018 | 104,733 | ||||||||||||||||||||||||||||||
All other fees | — | — | ||||||||||||||||||||||||||||||
Total fees | 1,432,162 | 1,643,177 | ||||||||||||||||||||||||||||||
Audit fees are fees billed for professional services rendered for the audit of our financial statements, internal control over financial reporting, review of the interim financial statements included in quarterly reports, services in connection with debt and equity securities offerings, and services that are normally provided by Deloitte in connection with statutory and regulatory filings or engagements. For 2021, this amount includes estimated billings for the completion of the 2021 audit, which Deloitte rendered after year-end. Audit-related fees are fees billed for assurance and related services that are reasonably related to the performance of the audit or review of our consolidated financial statements and are not reported under “Audit Fees.” The 2021 audit-related fees concerned Deloitte’s review of the company’s registration statements (and preparation of comfort letters) and our use of certain Deloitte research tools. | ||||||||||||||||||||||||||||||||
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Items of Business |
Tax fees are fees billed for tax compliance, tax advice and tax planning. All other fees are fees for products and services other than the services reported above. In fiscal years Pre-approval Policies and Procedures SEC rules require public company audit committees to pre-approve audit and non-audit services. Our Audit Committee follows procedures pursuant to which audit, audit-related, tax, and all permissible non-audit services are pre-approved by category of service. The fees are budgeted, and actual fees versus the budget are monitored throughout the year. During the year, circumstances may arise when it may become necessary to engage the independent public accountants for additional services not contemplated in the pre-approved budget. In those instances, we will obtain the specific pre-approval of the Audit Committee before engaging the independent public accountants. The procedures require the Audit Committee to be informed of each service, and the procedures do not include any delegation of the Audit Committee’s responsibilities to management. The Audit Committee may delegate pre-approval authority to one or more of its members. The member to whom such authority is delegated will report any pre-approval decisions to the Audit Committee at its next scheduled meeting. Pursuant to the provisions of the Audit Committee Charter, before Deloitte is engaged to render audit or non-audit services, the Audit Committee must pre-approve such engagement. For 2021, the Audit Committee (or the Chair of the Audit Committee pursuant to delegated authority) pre-approved 100 percent of the audit and tax fees. | |||||||||||||||||||||||||||||
Fee Category | 2016 Fees ($) | 2017 Fees ($) | |||||||||
Audit fees | 1,350,850 | 1,382,084 | |||||||||
Audit-related fees | — | — | |||||||||
Tax fees | 325,400 | 85,221 | |||||||||
All other fees | — | ||||||||||
Total fees | 1,676,250 | 1,467,305 | |||||||||
Pre-approval Policies and Procedures Rules adopted by the SEC in order to implement requirements of the Sarbanes-Oxley Act of 2002 require public company audit committees to pre-approve audit and non-audit services. Our Audit Committee follows procedures pursuant to which audit, audit-related, and tax services and all permissible non-audit services, are pre-approved by category of service. The fees are budgeted, and actual fees versus the budget are monitored throughout the year. During the year, circumstances may arise when it may become necessary to engage the independent public accountants for additional services not contemplated in the original pre-approval. In those instances, we will obtain the specific pre-approval of the Audit Committee before engaging the independent public accountants. The procedures require the Audit Committee to be informed of each service, and the procedures do not include any delegation of the Audit Committee’s responsibilities to management. The Audit Committee may delegate pre-approval authority to one or more of its members. The member to whom such authority is delegated will report any pre-approval decisions to the Audit Committee at its next scheduled meeting. Pursuant to the provisions of the Audit Committee Charter, before Deloitte is engaged to render audit or non-audit services, the Audit Committee must pre-approve such engagement. For 2017, the Audit Committee (or the Chair of the Audit Committee pursuant to delegated authority) pre-approved 100 percent of the tax fees. | |||||||||||
Leased Employees In connection with their audit of our 2017 annual financial statements, more than 50 percent of Deloitte’s work was performed by full-time, permanent employees of Deloitte. Vote Required The affirmative vote of the holders of a majority in voting power of the shares of our common stock which are present in person or represented by proxy and entitled to vote thereon is required to ratify the appointment of Deloitte. Brokers may vote a client’s proxy in their own discretion on this proposal. Abstentions will have the same effect as a vote against the proposal. Unless instructed to the contrary in the proxy, the shares represented by the proxies will be voted “FOR” the proposal to ratify the selection of Deloitte to serve as the independent registered public accounting firm for NorthWestern Corporation for the fiscal year ending December 31, 2018. | |||||||||||
Deloitte. | ||||||||||||||||||||||||||||||
Vote Required The affirmative vote of the holders of a majority in voting power of the shares of our common stock which are present online at the virtual annual meeting or represented by proxy and entitled to vote thereon is required to ratify the appointment of Deloitte as our independent registered public accounting firm for 2022. If voting instructions are not provided, brokers may vote a client’s proxy in | |||||||||||||||||||||||||||||
Items of Business |
Proposal No. 3 Advisory Vote to Approve Named Executive Officer Compensation | |||||||||||||||||
The Board of Directors recommends you vote “FOR” the resolution approving named executive officer compensation. | We would like your input as to how we pay our named executive officers, as required by Section 14A of the Exchange Act, through an advisory vote to approve named executive officer compensation (or a say-on-pay vote). Your vote will provide insight and guidance to us and our Board regarding your sentiment about our executive pay philosophy, policies and practices, as described in this proxy statement. Our Board will consider the guidance received by the say-on-pay vote when determining executive pay for the remainder of 2022 and beyond. We ask you to support our executive pay and vote in favor of the say-on-pay resolution. | ||||||||||||||||
Last year, through the say-on-pay vote, 98.7 percent of the votes cast approved how we pay our named executive officers. In fact, since our first say-on-pay vote in 2011, at least 94 percent of the votes cast have approved our executive pay each year. We view your voting guidance over the years as strong support for the way we pay our executives. Thus, in 2021, we left intact the executive pay program you previously approved and continued to use the same four components: base salary, annual cash incentive awards, long-term incentive awards, and retention/retirement awards. We did not change the design of these components. In fact, the only changes for 2021 from the 2020 program you approved, were (1) 1.5 percent base salary increases (the | |||||||||||||||||
same increase available to some employees) and (2) additional increases to certain executives’ target incentives either to align with the market or to reflect increased responsibilities following their promotions. | |||||||||||||||||
Our Human Resources Committee, or Compensation Committee, and our Board believe the company’s overall executive pay program is structured to reflect a strong pay-for-performance philosophy and aligns the long-term interests of our executives and our shareholders. Accordingly, the Board recommends that shareholders approve our executive pay program by voting “FOR” the following advisory resolution: RESOLVED, that the compensation paid to the company’s named executive officers (as disclosed pursuant to the compensation disclosure rules of the Securities and Exchange Commission, including the compensation discussion and analysis, the compensation tables and any related material disclosed in the company’s 2022 proxy statement) is hereby APPROVED. This advisory vote to approve named executive officer pay is not binding on the company. However, we and our Board will take into account the result of the vote when determining future executive pay arrangements. | |||||||||||||||||
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Items of Business |
Vote Required The affirmative vote of the holders of a majority in voting power of the shares of our common stock which are present at the virtual annual meeting or represented by proxy and entitled to vote thereon is required to approve the say-on-pay resolution set forth above. If your shares are held through a broker, bank, or other nominee and you do not vote your shares, your bank, broker, or other nominee may not vote your shares in this | |||||||||||||||||
Section | Summary | Page | ||||||||||||
Highlights of our | ||||||||||||||
How our pay and performance, relative to our peers, provides value to shareholders | ||||||||||||||
Details about how our Board uses shareholder feedback to set pay | ||||||||||||||
How our Compensation Committee governs our executive pay programs | ||||||||||||||
How our Compensation Committee determined the amount of | ||||||||||||||
Details about the different parts of | ||||||||||||||
Information on other aspects of our pay program | ||||||||||||||
Items of Business |
Our basic | Total Shareholder Return Our TSR was | Dividend Yield Our dividend of of | ||||||||||||||||||||||||||||||
Safety In | Reliability The reliability of our electric | Customer Service | ||||||||||||||||||||||||||||||
Named Executive Officers | |||||||||||||||
Robert C. Rowe | Crystal D. Lail | ||||||||||||||
Vice President and Chief Financial Officer | |||||||||||||||
Brian B. Bird | Curtis T. Pohl | ||||||||||||||
President and Chief Operating Officer (former Chief Financial Officer) | Vice President - Distribution | ||||||||||||||
Heather H. Grahame | Bobbi L. Schroeppel | ||||||||||||||
General Counsel and Vice President - | |||||||||||||||
Vice President - Customer Care, Communications and HR | |||||||||||||||
Compensation Discussion and Analysis |
Our Pay Practices | ||||||||||||
Our executive pay program accomplishes our goals by incorporating certain pay practices while avoiding other, more problematic or controversial practices. | ||||||||||||
What We Do | ||||||||||||
•Place a significant portion of executive pay at risk by granting incentive awards that are paid, if earned, based on continuing annual and long-term individual and company performance. | ||||||||||||
•Utilize multiple performance metrics for long-term incentive awards that align executive and shareholder interests. | ||||||||||||
•Target executive pay around the median of our peers, while also considering trade area economics, turn-over, tenure, experience, and other factors. | ||||||||||||
What We Don’t Do | ||||||||||||
•Use employment or golden parachute agreements. | ||||||||||||
•Provide change in control payments exceeding three times base salary and target bonus. Our only change in control provision appears in our Equity Compensation Plan and provides for the immediate vesting or cash payment of any unvested equity awards upon a change in control. | ||||||||||||
•Grant stock options. No stock options are currently outstanding, and none have been issued under our Equity Compensation Plan. | ||||||||||||
•Allow option repricing or liberal share recycling. These practices are expressly prohibited under our Equity Compensation Plan. | ||||||||||||
•Promise multi-year guarantees for salary increases. | ||||||||||||
•Provide perquisites for executives that differ materially from those available to employees generally. | ||||||||||||
•Maintain a non-performance-based top hat plan or separate retirement plan available only to our executive officers. We do maintain a performance-based executive retirement / retention program, with five-year cliff vesting and a five-year payout period after the recipient’s separation from service. | ||||||||||||
•Pay tax gross-ups to our executives. | ||||||||||||
•Pay dividends or dividend equivalents on unvested performance shares or units. | ||||||||||||
•Allow our executives or directors to hedge company securities. | ||||||||||||
NorthWestern Energy | Proxy Statement | Page 15 |
Compensation Discussion and Analysis |
Component | Description | Why we include this component | How we determine amount | Decisions for | Reason for Change | |||||||||||||
Base Salary | Short-term fixed cash compensation | Provide a base level of compensation for executive talent | Target middle of competitive range of peer group, with adjustments for trade area economics, turnover, tenure, and experience | |||||||||||||||
Annual Cash Incentive | Short-term variable cash compensation, based on corporate performance against annually established metrics (financial, safety, reliability, and customer satisfaction) and individual performance | Motivate employees to meet and exceed annual company objectives that are part of our strategic plan | Target middle of competitive range of peer group, with adjustments for trade area economics, turnover, tenure, and experience | |||||||||||||||
Performance Unit Awards under Long-Term Incentive Program (LTIP) | Long-term variable, equity compensation, paid following three-year vesting period if financial performance metrics (EPS, ROAE, and TSR) are achieved | Provide market-competitive, performance-based compensation opportunities while aligning interests of executives and shareholders | Market survey of similar peer group roles and responsibilities and assessment of the strategic value of each position | Reflect increased responsibilities | ||||||||||||||
Restricted Share Grants under Executive Retention / Retirement Program (ERRP) | Long-term variable, equity compensation, with corporate performance metrics over a five-year vesting period; paid over five-year period following separation from service | In lieu of a non-performance based supplemental retirement benefit, provide market-competitive, performance-based compensation opportunity that aligns interests of executives and shareholders, while encouraging retention and the continuity of our strategic plan | Peer group and competitive survey data and judgment on internal equity of positions and scope of responsibilities, as well as an assessment of the strategic value of each position |
NorthWestern Energy | Proxy Statement | Page 16 |
Compensation Discussion and Analysis |
THREE-YEAR TSR | ||
5-YEAR CEO PAY ALIGNMENT | ||||||||
VS. BASIC EPS | VS. ROAE | VS. CUMULATIVE TSR | ||||||
EPS reflects diluted earnings per average share of our common stock. TSR illustrates the growth of $100 invested in our common stock on December 31, |
NorthWestern Energy | Proxy Statement | Page 17 |
Compensation Discussion and Analysis |
CEO PAY FOR PERFORMANCE VS. 2021 PEERS | |||||||||||
1-YEAR | 3-YEAR | ||||||||||
Relative 1-Year CEO Pay* | Relative 1-Year CEO Pay* | Relative 1-Year TSR* | Relative 3-Year CEO Pay* | Relative 3-Year TSR* | Relative 1-Year CEO Pay* | Relative 1-Year TSR* | Relative 3-Year CEO Pay* | Relative 3-Year TSR* | ||||||||||||||||||||||||||||||||||
Great Plains Energy | 100% | Avista Corp. | 100% | PNM Resources Inc. | 100% | Otter Tail Corporation | 100% | |||||||||||||||||||||||||||||||||||
Vectren Corporation | 96% | Vectren Corporation | 89% | Vectren Corporation | 94% | Avista Corp. | 100% | |||||||||||||||||||||||||||||||||||
PNM Resources Inc. | PNM Resources Inc. | 100% | Otter Tail Corporation | 100% | PNM Resources Inc. | 100% | Otter Tail Corporation | 100% | ||||||||||||||||||||||||||||||||||
OGE Energy Corp. | OGE Energy Corp. | 45% | Portland General Electric | 41% | OGE Energy Corp. | 84% | MGE Energy Inc. | 82% | ||||||||||||||||||||||||||||||||||
Black Hills Corporation | 92% | Great Plains Energy | 71% | Avista Corp. | 83% | Vectren Corporation | 90% | Black Hills Corporation | 35% | OGE Energy Corp. | 39% | IDACORP, Inc. | 60% | IDACORP, Inc. | 63% | |||||||||||||||||||||||||||
PNM Resources Inc. | 89% | El Paso Electric Co. | 70% | Black Hills Corporation | 73% | El Paso Electric Co. | 81% | |||||||||||||||||||||||||||||||||||
Avista Corp. | 82% | PNM Resources Inc. | 67% | Great Plains Energy | 72% | IDACORP, Inc. | 81% | |||||||||||||||||||||||||||||||||||
OGE Energy Corp. | 79% | ALLETE, Inc. | 62% | Portland General Electric | 60% | ALLETE, Inc. | 81% | |||||||||||||||||||||||||||||||||||
Spire Inc. | Spire Inc. | 35% | IDACORP, Inc. | 33% | Spire Inc. | 55% | Portland General Electric | 56% | ||||||||||||||||||||||||||||||||||
Otter Tail Corporation | Otter Tail Corporation | 33% | MGE Energy Inc. | 31% | Black Hills Corporation | 52% | Black Hills Corporation | 50% | ||||||||||||||||||||||||||||||||||
ONE Gas Inc. | ONE Gas Inc. | 33% | Black Hills Corporation | 29% | ONE Gas Inc. | 51% | PNM Resources Inc. | 45% | ||||||||||||||||||||||||||||||||||
IDACORP, Inc. | 74% | IDACORP, Inc. | 53% | IDACORP, Inc. | 58% | MGE Energy Inc. | 78% | IDACORP, Inc. | 30% | ALLETE, Inc. | 19% | Portland General Electric | 44% | Avista Corp. | 34% | |||||||||||||||||||||||||||
Portland General Electric | 62% | Otter Tail Corporation | 41% | OGE Energy Corp. | 46% | PNM Resources Inc. | 78% | Portland General Electric | 25% | Avista Corp. | 18% | Otter Tail Corporation | 41% | OGE Energy Corp. | 33% | |||||||||||||||||||||||||||
El Paso Electric Co. | 50% | NorthWestern Energy | 30% | NorthWestern Energy | 36% | Portland General Electric | 50% | |||||||||||||||||||||||||||||||||||
NorthWestern Energy | 42% | Portland General Electric | 29% | El Paso Electric Co. | 34% | Great Plains Energy | 41% | NorthWestern Energy | 19% | Northwest Natural Holding | 18% | NorthWestern Energy | 35% | NorthWestern Energy | 27% | |||||||||||||||||||||||||||
Northwest Natural Holding | Northwest Natural Holding | 17% | Spire Inc. | 12% | Avista Corp. | 28% | ONE Gas Inc. | 24% | ||||||||||||||||||||||||||||||||||
Avista Corp. | Avista Corp. | 16% | ONE Gas Inc. | 10% | Northwest Natural Holding | 27% | Spire Inc. | 13% | ||||||||||||||||||||||||||||||||||
ALLETE, Inc. | 28% | OGE Energy Corp. | 10% | ALLETE, Inc. | 28% | Black Hills Corporation | 37% | ALLETE, Inc. | 3% | NorthWestern Energy | 7% | ALLETE, Inc. | 20% | ALLETE, Inc. | 11% | |||||||||||||||||||||||||||
Otter Tail Corporation | 25% | Black Hills Corporation | 7% | Otter Tail Corporation | 20% | NorthWestern Energy | 24% | |||||||||||||||||||||||||||||||||||
MGE Energy Inc. | —% | MGE Energy Inc. | —% | MGE Energy Inc. | —% | OGE Energy Corp. | —% | MGE Energy Inc. | —% | PNM Resources Inc. | —% | MGE Energy Inc. | —% | Northwest Natural Holding | —% | |||||||||||||||||||||||||||
*Relative CEO pay and TSR are expressed as a percentile of the range between the highest and lowest values. | ||||||||||||||||||||||||||||||||||||||||||
Source: CEO Pay for the one-year period is the 2016 total compensation and for the three-year period is the 2014-16 total compensation, as published in the 2015, 2016, and 2017 proxy statement Summary Compensation Tables for each respective company. We have excluded any change in pension value from the total compensation calculation because its inclusion could lead to inconsistent comparisons from company to company based upon differing pension plan provisions, length of employee tenure, and other factors. Total Shareholder Return is from SNL Financial for the one- and three-year periods ended December 31, 2017, and assumes reinvestment of dividends. We have excluded the CEO compensation and TSR for one of our peers, Westar Energy, Inc., from this presentation due to a pending merger transaction and the related lack of proxy statement compensation disclosure. | ||||||||||||||||||||||||||||||||||||||||||
*Relative CEO pay and relative TSR are expressed as a percentile of the range between the highest and lowest values of actual CEO pay and actual TSR. | *Relative CEO pay and relative TSR are expressed as a percentile of the range between the highest and lowest values of actual CEO pay and actual TSR. | |||||||||||||||||||||||||||||||||||||||||
Source: CEO Pay for the one-year period is the 2020 total compensation and for the three-year period is the 2018-2020 total compensation, as published in the 2019, 2020, and 2021 proxy statement Summary Compensation Tables for each respective company. We have excluded any change in pension value from the total compensation calculation because its inclusion could lead to inconsistent comparisons from company to company based upon differing pension plan provisions, length of employee tenure, and other factors. Total Shareholder Return is from S&P Global Market Intelligence for the one- and three-year periods ended December 31, 2021, and assumes reinvestment of dividends. | Source: CEO Pay for the one-year period is the 2020 total compensation and for the three-year period is the 2018-2020 total compensation, as published in the 2019, 2020, and 2021 proxy statement Summary Compensation Tables for each respective company. We have excluded any change in pension value from the total compensation calculation because its inclusion could lead to inconsistent comparisons from company to company based upon differing pension plan provisions, length of employee tenure, and other factors. Total Shareholder Return is from S&P Global Market Intelligence for the one- and three-year periods ended December 31, 2021, and assumes reinvestment of dividends. |
NorthWestern Energy | Proxy Statement | Page 18 |
Compensation Discussion and Analysis |
NAMED EXECUTIVE OFFICER PAY VS. 2021 PEERS | PAY MULTIPLE OF CEO TO SECOND HIGHEST PAID NAMED EXECUTIVE OFFICER | ||||||||||
Source: Total compensation (excluding change in pension value) as published in the proxy statement summary compensation table for each respective company. We excluded change in pension value because its inclusion could lead to inconsistent comparisons from company to company based upon differing pension plan provisions, length of employee tenure, and other factors. |
Our | ||||||||||||||||||||
Our Compensation Committee (a) selects the members of our peer group and periodically examines whether peers continue to meet the criteria for inclusion described For | ||||||||||||||||||||
ALLETE, Inc. (ALE) Avista Black Hills Corporation IDACORP, Inc. (IDA) MGE Energy Inc. (MGEE) NorthWestern Energy (NWE) Northwest Natural Holding Co. (NWN) OGE Energy Corp. (OGE) ONE Gas Inc. (OGS) Otter Tail Corporation (OTTR) PNM Resources Inc. (PNM) Portland General Electric Company (POR) | Market Capitalization(1) | Revenue (2) | ||||||||||||||||||
(1) Market capitalization range of our peer group as of February | ||||||||||||||||||||
(2) Range of publicly available trailing twelve months total revenues for our peer group | ||||||||||||||||||||
NorthWestern Energy | Proxy Statement | Page 19 |
Compensation Discussion and Analysis |
Align Interests. Provide pay that aligns management (and employee) interests with those of shareholders and customers. | Peer Comparison. Establish overall pay approximating the median of our peer group and applicable position comparisons. | Attract Talent. Set pay that will attract talent from both within and outside the utility industry. | ||||||||||||||||||||||||||||||
Economic Circumstances. Set pay based on economic circumstances, including turnover and retention considerations. | Pay for Performance. Tie all components of incentive pay to the company’s short-and long-term financial and operational performance. | No Executive Perks. Executives participate in same benefits plans available to all non‑union employees, with no additional perquisites, other than executive physicals. | ||||||||||||||||||||||||||||||
NorthWestern Energy | Proxy Statement | Page 20 |
Compensation Discussion and Analysis |
July Review and discuss timeline for setting executive pay | October Review materials from independent compensation consultant: | |||||||||||||||||||||||||
•Executive pay overview | ||||||||||||||||||||||||||
•Peer compensation analysis | ||||||||||||||||||||||||||
•Preliminary design of annual and long-term incentive opportunities | ||||||||||||||||||||||||||
December Evaluate overall executive pay program: | February Finalize executive pay: | |||||||||||||||||||||||||
•Review preliminary five-year financial plan | ||||||||||||||||||||||||||
•Approve upcoming annual incentive plan grants | ||||||||||||||||||||||||||
•Review proposed long-term incentive grants | ||||||||||||||||||||||||||
•Approve annual executive retention / retirement grants | •Review final five-year financial plan •Approve executive pay •Approve long-term incentive program grants •Review performance metrics results for prior year and approve payouts for current annual incentive plan and vesting of long-term incentive program | |||||||||||||||||||||||||
NorthWestern Energy | Proxy Statement | Page 21 |
CEO PAY MIX | OTHER NAMED EXECUTIVE OFFICER AVERAGE PAY MIX | ||||||||||
Charts represent target level for each component of compensation. |
NorthWestern Energy | Proxy Statement | Page 22 |
Compensation Discussion and Analysis |
We believe executive pay must be internally consistent and equitable to motivate our employees to create shareholder value. We are committed to internal pay equity, and the Compensation Committee monitors the relationship between the pay our executive officers receive and the pay our non-managerial employees receive. The Compensation Committee reviewed a comparison of CEO pay (base salary and incentive pay) to the pay of all our employees (other than our CEO) in | CEO Pay Ratio |
CEO to Median Employee | ||||||||||
Pay Ratio | ||||||||||
President and CEO | Median Employee | |||||||||
Base Salary | $ | 607,232 | $ | 81,939 | ||||||
Stock Awards | 1,497,280 | — | ||||||||
Non-Equity Incentive Plan Compensation | 605,836 | 3,363 | ||||||||
Change in Pension Value and Nonqualified Deferred Compensation Earnings (1) | 94,609 | 9,617 | ||||||||
All Other Compensation | 43,322 | 29,580 | ||||||||
TOTAL | $ | 2,848,279 | $ | 124,499 | ||||||
CEO Pay to Median Employee Pay Ratio | 23 | : | 1 | |||||||
(1) These amounts are attributable to a change in the value of each individual’s defined benefit pension account balance and do not represent earned or paid compensation. Pension values are dependent on many variables including years of service, earnings, and actuarial assumptions. | ||||||||||
NorthWestern Energy | Proxy Statement | Page 23 |
Compensation Discussion and Analysis |
CEO to Median Employee Pay Ratio | ||||||||||||||||||||
CEO | Median Employee | |||||||||||||||||||
Base Salary | $674,138 | $93,127 | ||||||||||||||||||
Stock Awards | $1,906,246 | — | ||||||||||||||||||
Annual Incentive Plan Compensation | $717,359 | $1,458 | ||||||||||||||||||
Change in Pension Value and Nonqualified Deferred Compensation Earnings (1) | $77,372 | — | ||||||||||||||||||
All Other Compensation | $70,252 | $30,478 | ||||||||||||||||||
TOTAL | $3,445,367 | $125,063 | ||||||||||||||||||
CEO Pay to Median Employee Pay Ratio | 28 | : | 1 | |||||||||||||||||
(1) These amounts are attributable to a change in the value of each individual’s defined benefit pension account balance and do not represent earned or paid compensation. Pension values are dependent on many variables including years of service, earnings, and actuarial assumptions. | ||||||||||||||||||||
The primary pay components for our executive officers in | |||||||||||
•Base Salary; | |||||||||||
•Annual performance-based cash incentive awards; and | |||||||||||
•Long-term performance-based equity incentive awards in the form of performance units and ERRP restricted share units. | |||||||||||
NorthWestern Energy | Proxy Statement | Page 24 |
Compensation Discussion and Analysis |
Annualized Base Salary | Increase (%) | |||||
2016 | 2017 | |||||
Name | ($) | ($) | ||||
Robert C. Rowe | 595,578 | 611,956 | 2.75 | |||
Brian B. Bird | 411,951 | 423,280 | 2.75 | |||
Heather H. Grahame | 360,714 | 370,634 | 2.75 | |||
Curtis T. Pohl | 279,922 | 287,620 | 2.75 | |||
Bobbi L. Schroeppel | 258,068 | 265,810 | 3.00 |
The Compensation Committee considers adjustments to base salaries for executive officers on an annual basis. For 2021, the Compensation Committee felt that an increase to the base salaries of our executive officers in line with the increases generally provided to our employees was reasonable in light of the company’s operating results | ||||||||||||||||||||||||||
in 2020. In early 2021, we announced that Brian Bird had been promoted to president and chief operating officer and Crystal Lail had been promoted to vice president and chief financial officer. Their base salary increases reflected the increased responsibilities of their new positions. The table to the right sets forth the base salaries for our named executive officers. The base salary adjustments for 2021 were effective April 1, 2021, with the exception of Mr. Bird and Ms. Lail, who received adjustments as of January 1, 2021. | ||||||||||||||||||||||||||
Annualized Base Salary | Increase (%) | |||||||||||||||||||||||||
2020 | 2021 | |||||||||||||||||||||||||
Name | ($) | ($) | ||||||||||||||||||||||||
Robert C. Rowe | 666,753 | 676,754 | 1.5 | |||||||||||||||||||||||
Brian B. Bird | 461,182 | 500,000 | 8.4 | |||||||||||||||||||||||
Heather H. Grahame | 434,951 | 441,475 | 1.5 | |||||||||||||||||||||||
Crystal D. Lail | 280,706 | 375,000 | 33.6 | |||||||||||||||||||||||
Curtis T. Pohl | 313,375 | 318,076 | 1.5 | |||||||||||||||||||||||
Bobbi L. Schroeppel | 297,536 | 301,999 | 1.5 | |||||||||||||||||||||||
(1) | (2) | (3) | (4) | |||||||||||||||||||||||
Base Salary | x | Individual Target Incentive (% of Base Salary) | x | Plan Funding Percentage (performance vs. metrics) | x | Individual Performance Multiple | = | Individual Payout |
$676,754 | x | 100% | x | 106% | x | 1 | = | $717,359 |
NorthWestern Energy | Proxy Statement | Page 25 |
$611,956 | x | 100% | x | 99% | x | 1 | = | $605,836 |
Compensation Discussion and Analysis |
The table to the right sets forth the 2021 annual incentive target opportunity for our named executive officers. In 2021, the Compensation Committee adjusted the target incentive opportunity for Mr. Bird and Ms. Lail in connection with their promotions and increased responsibilities. The other named executive officers remained at 2020 levels after the Compensation Committee determined that the existing target incentive opportunities were aligned with the incentive opportunity in the market place generally. | 2021 | |||||||||||||||||||||||||
Name | Base Salary ($) | Target Incentive Opportunity (% of base salary) | Target Incentive Opportunity ($) | |||||||||||||||||||||||
Robert C. Rowe | 676,754 | 100% | 676,754 | |||||||||||||||||||||||
Brian B. Bird | 500,000 | 75% | 375,000 | |||||||||||||||||||||||
Heather H. Grahame | 441,475 | 55% | 242,811 | |||||||||||||||||||||||
Crystal D. Lail | 375,000 | 50% | 187,500 | |||||||||||||||||||||||
Curtis T. Pohl | 318,076 | 40% | 127,230 | |||||||||||||||||||||||
Bobbi L. Schroeppel | 301,999 | 40% | 120,800 |
Before each annual incentive plan year begins, management proposes specific performance targets for the plan’s financial and operational measures. The Compensation Committee considers the proposed targets, and the Compensation Committee and the Board approve final targets. Following the end of the plan year, the | ||||||||||||||||||||
Compensation Committee reviews data submitted by management regarding company performance against each of the specific performance targets and determines the degree to which each performance measure was met during | ||||||||||||||||||||
Historical Funding of Annual Cash Incentive (as a percentage of target) | ||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||
113% | 99% | 136% | 126% | 74% | ||||||||||||||||
the year, subject to Board approval. The aggregate percentage of financial and operational measures met during the year represents the plan funding percentage for the annual incentive plan. 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 set forth in the table above. |
For many years, including 2021, 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 right. In order for any awards under the 2021 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. In addition, the 2021 annual incentive plan provided that the lost-time incident rate portion of the safety metric would be forfeited in the event of a work-related fatality, unless the Compensation Committee determined that no actions on the part of the employee or the Company contributed to the incident. | ||||||||
Annual Incentive Plan Metrics | ||||||||
NorthWestern Energy | Proxy Statement | Page 26 |
Compensation Discussion and Analysis |
In 2017, the Compensation Committee adjusted the target incentive opportunity for our chief executive officer only, increasing the opportunity to 100 percent from 80 percent in 2016. The Compensation Committee believed this increase was appropriate to align his incentive opportunity with his peers. The table to the right sets forth the 2017 annual incentive target opportunity for our named executive officers. | 2017 | |||||||
Name | Base Salary | Target Incentive Opportunity (% of base salary) | Target Incentive Opportunity ($) | |||||
Robert C. Rowe | $611,956 | 100% | $611,956 | |||||
Brian B. Bird | $423,280 | 50% | $211,640 | |||||
Heather H. Grahame | $370,634 | 45% | $166,785 | |||||
Curtis T. Pohl | $287,620 | 40% | $115,048 | |||||
Bobbi L. Schroeppel | $265,810 | 35% | $93,034 |
For our executives, the funding (as a percentage of target) under the annual incentive plan has ranged from 80 percent to 125 percent for the five previous years, as set forth in the table to the right. | Historical Funding of Annual Cash Incentive (as a percentage of target) | |||||
2012 | 2013 | 2014 | 2015 (1) | 2016 | ||
98% | 108% | 125% | 80% | 113% | ||
(1) Due to a work-related fatality in 2015, the funding level of the annual cash incentive for executives was 80% (for non-executive employees, the plan was funded at 88%). |
2021 | ||||||||||||||||||||||||||||||||||||||||||||
Annual Incentive Plan Information | ||||||||||||||||||||||||||||||||||||||||||||
Performance Measures | Weight (% of Total Plan Payout) | Performance Level | Target % Achieved | Final Funding % of Total | ||||||||||||||||||||||||||||||||||||||||
Threshold | Target | Maximum | Actual Achieved | |||||||||||||||||||||||||||||||||||||||||
Financial (55%) (1) | ||||||||||||||||||||||||||||||||||||||||||||
Net Income ($ in millions) | 55 | % | $164.3 | $ | 182.5 | $ | 200.8 | $186.8 | 111.9 | 61.5 | ||||||||||||||||||||||||||||||||||
Safety (15%) (2) | ||||||||||||||||||||||||||||||||||||||||||||
Lost Time Incident Rate | 5 | % | 0.58 | 0.47 | 0.24 | 0.46 | 102.2 | 5.1 | ||||||||||||||||||||||||||||||||||||
Total Recordable Incident Rate | 5 | % | 1.80 | 1.51 | 1.09 | 1.64 | 77.6 | 3.9 | ||||||||||||||||||||||||||||||||||||
Safety Training Completion | 5 | % | 99.0 | % | 99.5 | % | 100.0 | % | 100.0 | % | 10,050.0 | 7.5 | ||||||||||||||||||||||||||||||||
Reliability (15%) (3) | ||||||||||||||||||||||||||||||||||||||||||||
SAIDI (excluding major event days) | 5.0 | % | 117.00 | 103.00 | 89.00 | 111.00 | 71.4 | 3.6 | ||||||||||||||||||||||||||||||||||||
SAIDI (including major event days) | 5.0 | % | 168.00 | 124.00 | 94.00 | 131.50 | 91.5 | 4.6 | ||||||||||||||||||||||||||||||||||||
Gas – Leaks per 100 Miles of Main | 2.5 | % | 15.20 | 9.70 | 8.10 | 9.66 | 10,001.3 | 2.5 | ||||||||||||||||||||||||||||||||||||
Gas – Damages per 1000 Locates | 2.5 | % | 3.40 | 3.00 | 1.60 | 2.51 | 10,017.5 | 2.9 | ||||||||||||||||||||||||||||||||||||
Customer Satisfaction (15%) (4) | ||||||||||||||||||||||||||||||||||||||||||||
J.D. Power Residential Electric and Gas Survey Performance Ranking | 5 | % | 707.00 | 723.00 | 727.00 | 720.60 | 92.3 | 4.6 | ||||||||||||||||||||||||||||||||||||
Operational Performance – Customer Survey by Flynn Wright | 5 | % | 35.04 | 38.93 | 42.82 | 38.51 | 94.6 | 4.7 | ||||||||||||||||||||||||||||||||||||
Reputational Perceptions – Customer Survey by Flynn Wright | 5 | % | 34.46 | 38.29 | 42.12 | 37.94 | 95.4 | 4.8 | ||||||||||||||||||||||||||||||||||||
TOTAL FUNDING PERCENTAGE | 106.0 |
2017 Annual Incentive Plan Information | |||||||||||||||||||||||
Performance Measures | Weight (% of Total Plan Payout) | Performance Level | Target % Achieved | Final Funding % of Total | |||||||||||||||||||
Threshold | Target | Maximum | Actual Achieved | ||||||||||||||||||||
Financial (55%) (1) | |||||||||||||||||||||||
Net Income ($ in millions) | 55 | % | $148.4 | $ | 164.9 | $ | 181.4 | $162.7 | 93.4 | % | 51.3 | ||||||||||||
Safety (15%) (2) | |||||||||||||||||||||||
Lost Time Incident Rate | 5 | % | 0.70 | 0.55 | 0.30 | 0.51 | 108.0 | % | 5.4 | ||||||||||||||
Total Recordable Incident Rate | 5 | % | 2.00 | 1.70 | 1.40 | 1.92 | 63.3 | % | 3.2 | ||||||||||||||
Safety Training Completion | 5 | % | 93.0 | % | 96.0 | % | 99.0 | % | 99.2 | % | 150.0 | % | 7.5 | ||||||||||
Reliability (15%) (3) | |||||||||||||||||||||||
SAIDI (excluding major event days) | 5.0 | % | 122.00 | 107.00 | 94.00 | 114.96 | 73.5 | % | 3.7 | ||||||||||||||
SAIDI (including major event days) | 5.0 | % | 191.00 | 130.00 | 103.00 | 131.81 | 98.5 | % | 4.9 | ||||||||||||||
Gas – Leaks per 100 Miles of Main | 2.5 | % | 7.50 | 6.00 | 4.20 | 4.20 | 150.0 | % | 3.8 | ||||||||||||||
Gas – Damages per 1000 Locates | 2.5 | % | 2.50 | 2.10 | 1.70 | 2.30 | 75.0 | % | 1.9 | ||||||||||||||
Customer Satisfaction (15%) (4) | |||||||||||||||||||||||
JD Power Residential Electric and Gas Survey Performance Ranking | 5 | % | 650.00 | 688.00 | 692.00 | 696.60 | 150.0 | % | 7.5 | ||||||||||||||
Operational Performance – Customer Survey by Flynn Wright | 5 | % | 33.73 | 37.48 | 41.23 | 37.54 | 100.8 | % | 5.0 | ||||||||||||||
Reputational Perceptions – Customer Survey by Flynn Wright | 5 | % | 33.16 | 36.84 | 40.52 | 36.54 | 95.9 | % | 4.8 | ||||||||||||||
TOTAL FUNDING PERCENTAGE | 99.0 | % |
NorthWestern Energy | Proxy Statement | Page 27 |
Compensation Discussion and Analysis |
2017 | |||||||||||||||
Name | Base Salary | Target Cash Incentive, as % of Base Salary | Funding Percentage | Individual Performance Multiple | Actual Cash Incentive, as % of Base Salary | Cash Incentive Award ($) | |||||||||
Robert C. Rowe | $ | 611,956 | 100% | 99% | 1.00 | 99.0% | $ | 605,836 | |||||||
Brian B. Bird | $ | 423,280 | 50% | 99% | 1.00 | 49.5% | $ | 209,524 | |||||||
Heather H. Grahame | $ | 370,634 | 45% | 99% | 1.00 | 44.6% | $ | 165,117 | |||||||
Curtis T. Pohl | $ | 287,620 | 40% | 99% | 1.00 | 39.6% | $ | 113,898 | |||||||
Bobbi L. Schroeppel | $ | 265,810 | 35% | 99% | 1.00 | 34.7% | $ | 92,103 |
2021 | |||||||||||||||||||||||||||||||||||
Name | Base Salary ($) | Target Cash Incentive, as % of Base Salary | Funding Percentage (%) | Individual Performance Multiple | Actual Cash Incentive, as % of Base Salary | Cash Incentive Award ($) | |||||||||||||||||||||||||||||
Robert C. Rowe | 676,754 | 100% | 106 | 1.0 | 106.0% | 717,359 | |||||||||||||||||||||||||||||
Brian B. Bird | 500,000 | 75% | 106 | 1.0 | 79.5% | 397,500 | |||||||||||||||||||||||||||||
Heather H. Grahame | 441,475 | 55% | 106 | 1.0 | 58.3% | 257,380 | |||||||||||||||||||||||||||||
Crystal D. Lail | 375,000 | 50% | 106 | 1.0 | 53.0% | 198,750 | |||||||||||||||||||||||||||||
Curtis T. Pohl | 318,076 | 40% | 106 | 1.0 | 42.4% | 134,864 | |||||||||||||||||||||||||||||
Bobbi L. Schroeppel | 301,999 | 40% | 106 | 1.0 | 42.4% | 128,048 |
Clawback of Annual Cash Incentive Awards | ||||||||
Although we have not adopted a formal clawback policy, the annual cash incentive awards are specifically made subject to any formal clawback policy that we may adopt in the future. | ||||||||
NorthWestern Energy | Proxy Statement | Page 28 |
Compensation Discussion and Analysis |
Historical Funding of LTIP (as a percentage of target) | ||||
2011-2013 | 2012-2014 | 2013-2015 | 2014-2016 | 2015-2017 |
92.5% | 168.4% | 167.3% | 108.3% | 44.9% |
Historical Funding of LTIP (as a percentage of target) | ||||||||||||||
2015-2017 | 2016-2018 | 2017-2019 | 2018-2020 | 2019-2021 | ||||||||||
44.9% | 94.3% | 122.2% | 50% | 72.7% |
NorthWestern Energy | Proxy Statement | Page 29 |
Compensation Discussion and Analysis |
The target equity opportunities (value at target and number of shares) for the 2017 grants of LTIP performance units are shown in the table to the right. The table also compares the target opportunities (expressed as a percentage of base salary) applicable to the 2016 and 2017 awards. | Target LTIP Performance Unit Opportunity for 2017 | ||||||||||
2016 | 2017 | 2017 | |||||||||
Name | Base Salary (%) | Base Salary (%) | Value at Target ($) | LTIP Stock Awards (1) | |||||||
Robert C. Rowe | 200% | 200% | 1,191,156 | 24,821 | |||||||
Brian B. Bird | 100% | 100% | 411,951 | 8,584 | |||||||
Heather H. Grahame | 80% | 80% | 288,571.2 | 6,013 | |||||||
Curtis T. Pohl | 60% | 60% | 167,953.2 | 3,500 | |||||||
Bobbi L. Schroeppel | 40% | 50% | 129,034 | 2,689 | |||||||
(1) Based on a weighted average grant date fair value of $47.99, which was calculated using the closing stock price of $57.40 on February 16, 2017, less the present value of expected dividends |
The target equity opportunities (value at target and number of shares) for the 2021 grants of LTIP performance units are shown in the table to the right. The table also compares the target opportunities (expressed as a percentage of base salary) applicable to the 2020 and 2021 awards. | Target LTIP Performance Unit Opportunity for 2021 | ||||||||||||||||||||||||||||
2020 | 2021 | 2021 | 2021 | ||||||||||||||||||||||||||
Name | Base Salary (%) | Base Salary (%) | Value at Target ($) | LTIP Stock Awards (1) | |||||||||||||||||||||||||
Robert C. Rowe | 200% | 225 | 1,500,194 | 29,689 | |||||||||||||||||||||||||
Brian B. Bird | 100% | 140 | 700,000 | 13,853 | |||||||||||||||||||||||||
Heather H. Grahame | 90% | 90 | 391,456 | 7,747 | |||||||||||||||||||||||||
Crystal D. Lail | 45% | 90 | 337,500 | 6,679 | |||||||||||||||||||||||||
Curtis T. Pohl | 60% | 60 | 188,025 | 3,721 | |||||||||||||||||||||||||
Bobbi L. Schroeppel | 50% | 55 | 163,645 | 3,239 | |||||||||||||||||||||||||
(1) Based on a weighted average grant date fair value of $50.53, which was calculated using the closing stock price of $57.47 on February 11, 2021, less the present value of expected dividends. |
Performance Measures — 2017-2019 | Threshold | Target | Maximum | ||||||
Financial Goals – 50% | |||||||||
ROAE | 9 | % | 9.60 | % | 10.2 | % | |||
Simple Average EPS Growth | 0.4 | % | 2.4 | % | 4.4 | % | |||
TSR – 50% | |||||||||
Relative Average vs. Peers | 13th | 6th | 1st |
NorthWestern Energy | Proxy Statement | Page 30 |
Compensation Discussion and Analysis |
2021 Target ERRP Opportunity | |||||||||||||||||||||||
Name | 2021 Base Salary ($) | Award % of Base Salary (%) | Value at Grant Date ($) | ERRP Stock Awards (#) (1) | |||||||||||||||||||
Robert C. Rowe | 676,754 | 60 | 406,060 | 9,380 | |||||||||||||||||||
Brian B. Bird | 500,000 | 30 | 150,000 | 3,465 | |||||||||||||||||||
Heather H. Grahame | 441,475 | 25 | 110,390 | 2,550 | |||||||||||||||||||
Crystal D. Lail | 375,000 | 25 | 93,766 | 2,166 | |||||||||||||||||||
Curtis T. Pohl | 318,076 | 20 | 63,636 | 1,470 | |||||||||||||||||||
Bobbi L. Schroeppel | 301,999 | 20 | 60,400 | 1,395 |
2017 Target ERRP Opportunity | ||||||||||
Name | 2017 Base Salary ($) | Award % of Base Salary (%) | Value at Grant Date ($) | ERRP Stock Awards (1) (#) | ||||||
Robert C. Rowe | $611,956 | 50.0% | 305,978 | 5,862 | ||||||
Brian B. Bird | $423,280 | 25.0% | 105,820 | 2,027 | ||||||
Heather H. Grahame | $370,634 | 20.0% | 74,127 | 1,420 | ||||||
Curtis T. Pohl | $287,620 | 20.0% | 57,524 | 1,102 | ||||||
Bobbi L. Schroeppel | $265,810 | 15.0% | 39,872 | 764 |
Performance Measures — 2015-2017 | Threshold | Target | Maximum | Actual | |||||||||||||||||||||||||||||||||||||
Performance Measures — 2019-2021 | Performance Measures — 2019-2021 | Threshold | Target | Maximum | Actual | ||||||||||||||||||||||||||||||||||||
Financial Goals – 50% | Financial Goals – 50% | ||||||||||||||||||||||||||||||||||||||||
ROAE | 9.0 | % | 9.6 | % | 10.2 | % | 9.8 | % | ROAE | 8.4 | % | 8.8 | % | 9.3 | % | 8.7 | % | ||||||||||||||||||||||||
Average EPS Growth | 0.4 | % | 2.4 | % | 4.4 | % | 3.7 | % | |||||||||||||||||||||||||||||||||
Simple Average EPS Growth | Simple Average EPS Growth | 1.7 | % | 3.2 | % | 4.7 | % | (1.4) | % | ||||||||||||||||||||||||||||||||
Market Goal – 50% | Market Goal – 50% | ||||||||||||||||||||||||||||||||||||||||
Relative TSR Average vs. Peers | 13th | 6th | 1st | 12th | Relative TSR Average vs. Peers | 13th | 6th | 1st | 9th |
NorthWestern Energy | Proxy Statement | Page 31 |
Compensation Discussion and Analysis |
Based on the Compensation Committee’s calculation of these performance measures, the 2015 LTIP performance unit grants vested at 44.9 percent. The table to the right summarizes the performance results with respect to each | |||||||||||
of the performance measures applicable to the 2015 LTIP performance unit grants and the corresponding contributions to the vesting percentage. | |||||||||||
Performance Measures — 2015-2017 | Result | Weight | Vesting | ||||||||
Financial Goals – ROAE and Average Net Income Growth | 69.8 | % | 50 | % | 34.9 | % | |||||
Market Goal – TSR | 20.0 | % | 50 | % | 10.0 | % | |||||
TOTAL | 44.9 | % |
Based on the Compensation Committee’s calculation of these performance measures, the 2019 LTIP performance unit grants vested at 72.7 percent. The table to | Performance Measures — 2019-2021 | Result | Weight | Vesting | ||||||||||||||||||||||
Financial Goals – ROAE and Simple Average EPS Growth | 90.4 | 50 | % | 45.2 | % | |||||||||||||||||||||
Market Goal – TSR | 55.0 | % | 50 | % | 27.5 | % | ||||||||||||||||||||
TOTAL | 72.7 | % | ||||||||||||||||||||||||
the right summarizes the performance results with respect to each of the performance measures applicable to the 2019 LTIP performance unit grants and the corresponding contributions to the vesting percentage. |
Vesting of 2019 Performance Unit Grants | ||||||||||||||||||||
Name | Units at Grant Date (#) | Vesting Percentage (%) | Units upon Vesting (#) | |||||||||||||||||
Robert C. Rowe | 20,868 | 72.7% | 15,171 | |||||||||||||||||
Brian B. Bird | 7,217 | 72.7% | 5,247 | |||||||||||||||||
Heather H. Grahame | 5,952 | 72.7% | 4,327 | |||||||||||||||||
Crystal D. Lail | 1,660 | 72.7% | 1,207 | |||||||||||||||||
Curtis T. Pohl | 2,942 | 72.7% | 2,139 | |||||||||||||||||
Bobbi L. Schroeppel | 2,310 | 72.7% | 1,679 |
Vesting of 2015 Performance Unit Grants | ||||||||
Name | Units at Grant Date (#) | Vesting Percentage (%) | Units upon Vesting (#) | |||||
Robert C. Rowe | 19,828 | 44.9% | 8,903 | |||||
Brian B. Bird | 8,672 | 44.9% | 3,894 | |||||
Heather H. Grahame | 5,524 | 44.9% | 2,480 | |||||
Curtis T. Pohl | 3,728 | 44.9% | 1,674 | |||||
Bobbi L. Schroeppel | 2,291 | 44.9% | 1,029 |
Net Income (millions) | |||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||
$162.7 | $172.7 | $197.0 | $202.1 | $155.2 | $186.8 |
Net Income (millions) | |||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
$98.4 | $94.0 | $120.7 | $151.2 | $164.2 | $162.7 |
NorthWestern Energy | Proxy Statement | Page 32 |
Compensation Discussion and Analysis |
As a result of achieving the financial performance metric, the | |||||||||||||||
entitled to payout of any of the vested units in such account until the executive leaves the company, and following | |||||||||||||||
such departure, each unit will be paid out as a share of common stock of the company in five equal annual installments. The table to the right | |||||||||||||||
Name | |||||||||||||||
Robert C. Rowe | |||||||||||||||
Brian B. Bird | |||||||||||||||
Heather H. Grahame | |||||||||||||||
Crystal D. Lail | 776 | ||||||||||||||
Curtis T. Pohl | |||||||||||||||
Bobbi L. Schroeppel |
NorthWestern Energy | Proxy Statement | Page 33 |
Compensation Discussion and Analysis |
Compensation Committee Report The Compensation Committee reviewed and discussed the Compensation Discussion and Analysis with management. Based on this review and discussion, the Compensation Committee recommended to the Board that the Compensation Discussion and Analysis be included in the proxy statement and incorporated by reference into the Annual Report on Form 10-K for the year ended December 31, Compensation Committee | ||||||||
NorthWestern Energy | Proxy Statement | Page 34 |
Compensation Discussion and Analysis |
Name and Principal Position (1) | Year | Salary ($) | Bonus ($) (2) | Stock Awards ($) (3) | Non-Equity Incentive Plan Compensation ($) (2) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) (4) | All Other Compen- sation ($) (5) | Total ($) | ||||||||||||||||||||||||||||||||||||||||||
Robert C. Rowe | ||||||||||||||||||||||||||||||||||||||||||||||||||
Chief Executive Officer | 2021 | 674,138 | — | 1,906,246 | 717,359 | 77,372 | 70,252 | 3,445,367 | ||||||||||||||||||||||||||||||||||||||||||
2020 | 687,206 | 493,397 | 1,698,500 | — | 165,530 | 57,415 | 3,102,048 | |||||||||||||||||||||||||||||||||||||||||||
2019 | 643,770 | — | 1,650,164 | 818,022 | 144,501 | 41,847 | 3,298,304 | |||||||||||||||||||||||||||||||||||||||||||
Brian B. Bird | ||||||||||||||||||||||||||||||||||||||||||||||||||
President and Chief Operating Officer (former Chief Financial Officer) | 2021 | 494,774 | — | 850,000 | 397,500 | 8,196 | 62,157 | 1,812,627 | ||||||||||||||||||||||||||||||||||||||||||
2020 | 475,329 | 204,765 | 564,353 | — | 28,446 | 58,672 | 1,331,565 | |||||||||||||||||||||||||||||||||||||||||||
2019 | 445,284 | — | 548,242 | 339,487 | 31,861 | 57,387 | 1,422,261 | |||||||||||||||||||||||||||||||||||||||||||
Heather H. Grahame | ||||||||||||||||||||||||||||||||||||||||||||||||||
General Counsel and Vice President - Regulatory & Federal Gov't Affairs | 2021 | 439,769 | — | 501,825 | 257,380 | — | 53,163 | 1,252,137 | ||||||||||||||||||||||||||||||||||||||||||
2020 | 448,293 | 177,025 | 468,154 | — | — | 55,026 | 1,148,498 | |||||||||||||||||||||||||||||||||||||||||||
2019 | 416,601 | — | 444,292 | 293,497 | — | 51,505 | 1,205,895 | |||||||||||||||||||||||||||||||||||||||||||
Crystal D. Lail | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vice President and Chief Financial Officer | 2021 | 362,307 | — | 431,250 | 198,750 | 1,954 | 51,193 | 1,045,454 | ||||||||||||||||||||||||||||||||||||||||||
Curtis T. Pohl | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vice President - Distribution | 2021 | 316,847 | — | 251,640 | 134,864 | 2,553 | 57,519 | 763,423 | ||||||||||||||||||||||||||||||||||||||||||
2020 | 322,988 | 92,759 | 245,757 | — | 52,154 | 56,770 | 770,428 | |||||||||||||||||||||||||||||||||||||||||||
2019 | 302,572 | — | 238,776 | 153,789 | 59,131 | 53,608 | 807,876 | |||||||||||||||||||||||||||||||||||||||||||
Bobbi L. Schroeppel | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vice President - Customer Care, Communications and HR | 2021 | 300,832 | — | 224,045 | 128,048 | 1,509 | 54,834 | 709,268 | ||||||||||||||||||||||||||||||||||||||||||
2020 | 306,000 | 88,071 | 203,244 | — | 38,170 | 56,168 | 691,653 | |||||||||||||||||||||||||||||||||||||||||||
2019 | 285,059 | — | 182,672 | 144,887 | 39,441 | 56,915 | 708,974 |
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards (1) ($) | Non-Equity Incentive Plan Compensation (2) ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings (3) ($) | All Other Compen- sation (4) ($) | Total ($) | |||||||||||||||
Robert C. Rowe | |||||||||||||||||||||||
President and Chief Executive Officer | 2017 | 607,232 | — | 1,497,280 | 605,836 | 94,609 | 43,322 | 2,848,279 | |||||||||||||||
2016 | 590,641 | — | 1,454,138 | 538,403 | 68,952 | 27,933 | 2,680,067 | ||||||||||||||||
2015 | 573,567 | — | 1,131,121 | 370,068 | 39,285 | 41,564 | 2,155,605 | ||||||||||||||||
Brian B. Bird | |||||||||||||||||||||||
Vice President and Chief Financial Officer | 2017 | 420,012 | — | 517,798 | 209,524 | 22,378 | 54,923 | 1,224,635 | |||||||||||||||
2016 | 408,536 | — | 502,909 | 232,752 | 15,458 | 50,027 | 1,209,682 | ||||||||||||||||
2015 | 391,181 | — | 468,227 | 159,981 | 9,264 | 49,677 | 1,078,330 | ||||||||||||||||
Heather H. Grahame | |||||||||||||||||||||||
Vice President - General Counsel / Regulatory & Federal Gov't Affairs | 2017 | 367,773 | — | 362,718 | 165,117 | — | 49,527 | 945,135 | |||||||||||||||
2016 | 357,724 | — | 352,303 | 183,423 | — | 51,496 | 944,946 | ||||||||||||||||
2015 | 346,032 | — | 304,597 | 126,075 | — | 48,360 | 825,064 | ||||||||||||||||
Curtis T. Pohl | |||||||||||||||||||||||
Vice President - Distribution | 2017 | 285,399 | — | 225,507 | 113,898 | 38,024 | 49,257 | 712,085 | |||||||||||||||
2016 | 277,602 | — | 219,010 | 126,525 | 21,421 | 59,155 | 703,713 | ||||||||||||||||
2015 | 269,577 | — | 212,661 | 86,966 | 5,814 | 59,702 | 634,720 | ||||||||||||||||
Bobbi L. Schroeppel | |||||||||||||||||||||||
Vice President - Customer Care, Communications and HR | 2017 | 263,577 | — | 168,940 | 92,103 | 24,602 | 53,984 | 603,206 | |||||||||||||||
2016 | 255,929 | — | 164,014 | 102,066 | 13,992 | 50,221 | 586,222 | ||||||||||||||||
2015 | 248,530 | — | 134,849 | 70,154 | 5,012 | 49,823 | 508,368 |
(4) | The table to the right identifies the items included in the “All Other Compensation” column for 2017. Employee benefits include employer contributions, as applicable, for health benefits (medical, dental, vision, employee assistance plan and health savings account), group term life and 401(k) plan, which are generally available to all employees on a nondiscriminatory basis. Life insurance also includes imputed | ||||||||||||||||||||||
income consistent with IRS guidelines for coverage amounts in excess of $50,000 for each of the named executive officers. Mr. Rowe’s, Mr. Bird’s and Ms. Schroeppel’s other income for 2017 includes imputed income related to executive physicals. Mr. Rowe’s other income also includes vacation sold back to the company at a rate of 75 percent. | |||||||||||||||||||||||
Health Benefits | Life Insurance | 401(k) Contributions | Other Income | Total All Other Compensation | |||||||||||||||||||
Robert C. Rowe | $ | 7,763 | $ | 5,204 | $ | 10,800 | $ | 19,555 | $ | 43,322 | |||||||||||||
Brian B. Bird | 22,744 | 2,357 | 27,000 | 2,822 | 54,923 | ||||||||||||||||||
Heather H. Grahame | 19,528 | 2,999 | 27,000 | — | 49,527 | ||||||||||||||||||
Curtis T. Pohl | 16,423 | 3,134 | 29,700 | — | 49,257 | ||||||||||||||||||
Bobbi L. Schroeppel | 22,743 | 1,419 | 27,000 | 2,822 | 53,984 |
Health Benefits | Life Insurance | 401(k) Contributions | Other Income | Total All Other Compensation | ||||||||||||||||||||||||||||
Robert C. Rowe | $ | 19,396 | $ | 9,925 | $ | 11,600 | $ | 29,331 | $ | 70,252.00 | ||||||||||||||||||||||
Brian B. Bird | 24,118 | 2,597 | 31,900 | 3,542 | $ | 62,157.00 | ||||||||||||||||||||||||||
Heather H. Grahame | 14,867 | 6,214 | 31,900 | 182 | $ | 53,163.00 | ||||||||||||||||||||||||||
Crystal D. Lail | 11,594 | 1,251 | 28,892 | 9,456 | $ | 51,193.00 | ||||||||||||||||||||||||||
Curtis T. Pohl | 17,874 | 5,229 | 31,900 | 2,516 | $ | 57,519.00 | ||||||||||||||||||||||||||
Bobbi L. Schroeppel | 22,963 | 1,885 | 29,986 | — | $ | 54,834.00 |
Name | Grant Date | Estimated Future Payouts Under Non-equity Incentive Plan Awards | Estimated Future Payouts Under Equity Incentive Plan Awards (1) | All Other Stock Awards: Number of Shares of Stock or Units (#) | Grant Date Fair Value of Stock Awards (2) ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Robert C. Rowe | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual Cash Incentive | — | 338,377 | 676,754 | 1,015,131 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Performance Units | 2/11/2021 | — | — | — | — | 29,689 | 59,378 | — | 1,500,185 | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted Share Units | 12/14/2021 | — | — | — | — | 9,380 | 9,380 | — | 406,060 | |||||||||||||||||||||||||||||||||||||||||||||||
Brian B. Bird | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual Cash Incentive | — | 187,500 | 375,000 | 562,500 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Performance Units | 2/11/2021 | — | — | — | — | 13,853 | 27,706 | — | 699,992 | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted Share Units | 12/14/2021 | — | — | — | — | 3,465 | 3,465 | — | 150,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Heather H. Grahame | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual Cash Incentive | — | 121,406 | 242,811 | 364,217 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Performance Units | 2/11/2021 | — | — | — | — | 7,747 | 15,494 | — | 391,456 | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted Share Units | 12/14/2021 | — | — | — | — | 2,550 | 2,550 | — | 110,390 | |||||||||||||||||||||||||||||||||||||||||||||||
Crystal D. Lail | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual Cash Incentive | — | 93,750 | 187,500 | 281,250 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Performance Units | 2/11/2021 | — | — | — | — | 6,679 | 13,358 | — | 337,490 | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted Share Units | 12/14/2021 | — | — | — | — | 2,166 | 2,166 | — | 93,766 | |||||||||||||||||||||||||||||||||||||||||||||||
Curtis T. Pohl | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual Cash Incentive | — | 63,615 | 127,230 | 190,846 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Performance Units | 2/11/2021 | — | — | — | — | 3,721 | 7,442 | — | 188,022 | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted Share Units | 12/14/2021 | — | — | — | — | 1,470 | 1,470 | — | 63,636 | |||||||||||||||||||||||||||||||||||||||||||||||
Bobbi L. Schroeppel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual Cash Incentive | — | 60,400 | 120,800 | 181,199 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Performance Units | 2/11/2021 | — | — | — | — | 3,239 | 6,478 | — | 163,667 | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted Share Units | 12/14/2021 | — | — | — | — | 1,395 | 1,395 | — | 60,390 |
Name | Grant Date | Estimated Future Payouts Under Non-equity Incentive Plan Awards | Estimated Future Payouts Under Equity Incentive Plan Awards (1) | All Other Stock Awards: Number of Shares of Stock or Units (#) | Grant Date Fair Value of Stock Awards (2) ($) | ||||||||||||||||||||||
Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||||||||||||||||||
Robert C. Rowe | |||||||||||||||||||||||||||
Annual Cash Incentive | — | 305,978 | 611,956 | 917,934 | — | — | — | — | — | ||||||||||||||||||
Performance Units | 2/16/2017 | — | — | — | — | 24,821 | 49,642 | — | 1,191,284 | ||||||||||||||||||
Restricted Share Units | 12/12/2017 | — | — | — | — | 5,862 | 5,862 | — | 305,996 | ||||||||||||||||||
Brian B. Bird | |||||||||||||||||||||||||||
Annual Cash Incentive | — | 105,820 | 211,640 | 317,460 | — | — | — | — | — | ||||||||||||||||||
Performance Units | 2/16/2017 | — | — | — | — | 8,584 | 17,168 | — | 411,989 | ||||||||||||||||||
Restricted Share Units | 12/12/2017 | — | — | — | — | 2,027 | 2,027 | — | 105,809 | ||||||||||||||||||
Heather H. Grahame | |||||||||||||||||||||||||||
Annual Cash Incentive | — | 83,393 | 166,785 | 250,178 | — | — | — | — | — | ||||||||||||||||||
Performance Units | 2/16/2017 | — | — | — | — | 6,013 | 12,026 | — | 288,594 | ||||||||||||||||||
Restricted Share Units | 12/12/2017 | — | — | — | — | 1,420 | 1,420 | — | 74,124 | ||||||||||||||||||
Curtis T. Pohl | |||||||||||||||||||||||||||
Annual Cash Incentive | — | 57,524 | 115,048 | 172,572 | — | — | — | — | — | ||||||||||||||||||
Performance Units | 2/16/2017 | — | — | — | — | 3,500 | 7,000 | — | 167,983 | ||||||||||||||||||
Restricted Share Units | 12/12/2017 | — | — | — | — | 1,102 | 1,102 | — | 57,524 | ||||||||||||||||||
Bobbi L. Schroeppel | |||||||||||||||||||||||||||
Annual Cash Incentive | — | 46,517 | 93,034 | 139,550 | — | — | — | — | — | ||||||||||||||||||
Performance Units | 2/16/2017 | — | — | — | — | 2,689 | 5,378 | — | 129,059 | ||||||||||||||||||
Restricted Share Units | 12/12/2017 | — | — | — | — | 764 | 764 | — | 39,881 |
NorthWestern Energy | Proxy Statement | Page 36 |
Stock Awards | |||||||||||||||||||||||||||||||||||
Name | Number of LTIP Shares Acquired on Vesting (#) (1) | Value Realized on LTIP Vesting ($) (2) | Number of ERRP Shares Acquired on Vesting (#) (3) | Value Realized on ERRP Vesting ($) (2) | Total Shares Acquired on Vesting (#) | Total Value Realized ($) (2) | |||||||||||||||||||||||||||||
Robert C. Rowe | 15,171 | 867,176 | 6,505 | 371,826 | 21,676 | 1,239,002 | |||||||||||||||||||||||||||||
Brian B. Bird | 5,247 | 299,905 | 2,250 | 128,610 | 7,497 | 428,515 | |||||||||||||||||||||||||||||
Heather H. Grahame | 4,327 | 247,337 | 1,576 | 90,084 | 5,903 | 337,421 | |||||||||||||||||||||||||||||
Crystal D. Lail | 1,207 | 68,982 | 776 | 44,356 | 1,983 | 113,338 | |||||||||||||||||||||||||||||
Curtis T. Pohl | 2,139 | 122,256 | 1,223 | 69,907 | 3,362 | 192,162 | |||||||||||||||||||||||||||||
Bobbi L. Schroeppel | 1,679 | 95,993 | 846 | 48,357 | 2,525 | 144,350 |
Stock Awards | ||||||||||||||
Name | Number of LTIP Shares Acquired on Vesting (#) (1) | Value Realized on LTIP Vesting ($) | Number of ERRP Shares Acquired on Vesting (#) (2) | Value Realized on ERRP Vesting ($) | Total Value Realized ($) | |||||||||
Robert C. Rowe | 8,903 | 531,495 | 3,814 | 227,696 | 759,191 | |||||||||
Brian B. Bird | 3,894 | 232,456 | 1,251 | 74,685 | 307,140 | |||||||||
Heather H. Grahame | 2,480 | 148,072 | 911 | 54,387 | 202,459 | |||||||||
Curtis T. Pohl | 1,674 | 99,930 | 717 | 42,805 | 142,735 | |||||||||
Bobbi L. Schroeppel | 1,029 | 61,411 | 482 | 28,775 | 90,186 |
NorthWestern Energy | Proxy Statement | Page 37 |
Stock Awards | ||||||||||||||||||||||||||||||||
Type of Award | Grant Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) (1) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (1) (2) (3) | |||||||||||||||||||||||||||
Robert C. Rowe | ||||||||||||||||||||||||||||||||
ERRP | 12/14/2021 | 9,380 | 536,161 | |||||||||||||||||||||||||||||
LTIP | 2/11/2021 | 29,689 | 1,697,023 | |||||||||||||||||||||||||||||
ERRP | 12/22/2020 | 8,976 | 513,068 | |||||||||||||||||||||||||||||
LTIP | 2/12/2020 | 17,755 | 1,014,876 | |||||||||||||||||||||||||||||
ERRP | 12/18/2019 | 6,414 | 366,624 | |||||||||||||||||||||||||||||
ERRP | 12/13/2018 | 6,976 | 398,748 | |||||||||||||||||||||||||||||
ERRP | 12/12/2017 | 5,862 | 335,072 | |||||||||||||||||||||||||||||
Brian B. Bird | ||||||||||||||||||||||||||||||||
ERRP | 12/14/2021 | 3,465 | 198,059 | |||||||||||||||||||||||||||||
LTIP | 2/11/2021 | 13,853 | 791,837 | |||||||||||||||||||||||||||||
ERRP | 12/22/2020 | 2,587 | 147,873 | |||||||||||||||||||||||||||||
LTIP | 2/12/2020 | 6,141 | 351,020 | |||||||||||||||||||||||||||||
ERRP | 12/18/2019 | 1,849 | 105,689 | |||||||||||||||||||||||||||||
ERRP | 12/13/2018 | 2,011 | 114,949 | |||||||||||||||||||||||||||||
ERRP | 12/12/2017 | 2,027 | 115,863 | |||||||||||||||||||||||||||||
Heather H. Grahame | ||||||||||||||||||||||||||||||||
ERRP | 12/14/2021 | 2,550 | 145,758 | |||||||||||||||||||||||||||||
LTIP | 2/11/2021 | 7,747 | 442,819 | |||||||||||||||||||||||||||||
ERRP | 12/22/2020 | 1,952 | 111,576 | |||||||||||||||||||||||||||||
LTIP | 2/12/2020 | 5,212 | 297,918 | |||||||||||||||||||||||||||||
ERRP | 12/18/2019 | 1,395 | 79,738 | |||||||||||||||||||||||||||||
ERRP | 12/13/2018 | 1,474 | 84,254 | |||||||||||||||||||||||||||||
ERRP | 12/12/2017 | 1,420 | 81,167 | |||||||||||||||||||||||||||||
Crystal D> Lail | ||||||||||||||||||||||||||||||||
ERRP | 12/14/2021 | 2,166 | 123,809 | |||||||||||||||||||||||||||||
LTIP | 2/11/2021 | 6,679 | 381,772 | |||||||||||||||||||||||||||||
ERRP | 12/22/2020 | 1,260 | 72,022 | |||||||||||||||||||||||||||||
LTIP | 2/12/2020 | 1,412 | 80,710 | |||||||||||||||||||||||||||||
ERRP | 12/18/2019 | 638 | 36,468 | |||||||||||||||||||||||||||||
ERRP | 12/13/2018 | 694 | 39,669 | |||||||||||||||||||||||||||||
ERRP | 12/12/2017 | 699 | 39,955 | |||||||||||||||||||||||||||||
Curtis T. Pohl | ||||||||||||||||||||||||||||||||
ERRP | 12/14/2021 | 1,470 | 84,025 | |||||||||||||||||||||||||||||
LTIP | 2/11/2021 | 3,721 | 212,692 | |||||||||||||||||||||||||||||
ERRP | 12/22/2020 | 1,406 | 80,367 | |||||||||||||||||||||||||||||
LTIP | 2/12/2020 | 2,504 | 143,129 | |||||||||||||||||||||||||||||
ERRP | 12/18/2019 | 1,005 | 57,446 | |||||||||||||||||||||||||||||
ERRP | 12/13/2018 | 1,093 | 62,476 | |||||||||||||||||||||||||||||
ERRP | 12/12/2017 | 1,102 | 62,990 | |||||||||||||||||||||||||||||
Bobbi L. Schroeppel | ||||||||||||||||||||||||||||||||
ERRP | 12/14/2021 | 1,395 | 79,738 | |||||||||||||||||||||||||||||
LTIP | 2/11/2021 | 3,239 | 185,141 | |||||||||||||||||||||||||||||
ERRP | 12/22/2020 | 1,335 | 76,309 | |||||||||||||||||||||||||||||
LTIP | 2/12/2020 | 1,965 | 112,319 | |||||||||||||||||||||||||||||
ERRP | 12/18/2019 | 710 | 40,584 | |||||||||||||||||||||||||||||
ERRP | 12/13/2018 | 772 | 44,128 | |||||||||||||||||||||||||||||
ERRP | 12/12/2017 | 764 | 43,670 |
Stock Awards | ||||||||
Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (1) (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (1) (2) (3) ($) | |||||||
Robert C. Rowe | ||||||||
12/12/2017 | 5,862 | 349,961 | ||||||
2/16/2017 | 24,821 | 1,481,814 | ||||||
12/7/2016 | 6,505 | 388,349 | ||||||
2/10/2016 | 22,982 | 1,372,025 | ||||||
12/9/2015 | 6,458 | 385,543 | ||||||
12/16/2014 | 6,410 | 382,677 | ||||||
12/10/2013 | 3,878 | 231,517 |
NorthWestern Energy | Proxy Statement | Page 38 |
Executive Pay |
Stock Awards | ||||||||
Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (1) (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (1) (2) (3) ($) | |||||||
Brian B. Bird | ||||||||
12/12/2017 | 2,027 | 121,012 | ||||||
2/16/2017 | 8,584 | 512,465 | ||||||
12/7/2016 | 2,250 | 134,325 | ||||||
2/10/2016 | 7,948 | 474,496 | ||||||
12/9/2015 | 2,233 | 133,310 | ||||||
12/16/2014 | 2,103 | 125,549 | ||||||
12/10/2013 | 1,272 | 75,938 | ||||||
Heather H. Grahame | ||||||||
12/12/2017 | 1,420 | 84,774 | ||||||
2/16/2017 | 6,013 | 358,976 | ||||||
12/7/2016 | 1,576 | 94,087 | ||||||
2/10/2016 | 5,568 | 332,410 | ||||||
12/9/2015 | 1,564 | 93,371 | ||||||
12/16/2014 | 1,531 | 91,401 | ||||||
12/10/2013 | 926 | 55,282 | ||||||
Curtis T. Pohl | ||||||||
12/12/2017 | 1,102 | 65,789 | ||||||
2/16/2017 | 3,500 | 208,950 | ||||||
12/7/2016 | 1,223 | 73,013 | ||||||
2/10/2016 | 3,240 | 193,428 | ||||||
12/9/2015 | 1,214 | 72,476 | ||||||
12/16/2014 | 1,205 | 71,939 | ||||||
12/10/2013 | 729 | 43,521 | ||||||
Bobbi L. Schroeppel | ||||||||
12/12/2017 | 764 | 45,611 | ||||||
2/16/2017 | 2,689 | 160,533 | ||||||
12/7/2016 | 846 | 50,506 | ||||||
2/10/2016 | 2,490 | 148,653 | ||||||
12/9/2015 | 839 | 50,088 | ||||||
12/16/2014 | 833 | 49,730 | ||||||
12/10/2013 | 490 | 29,253 |
Name | Plan Name | Number of Years Credited Service (#) | Present Value of Accumulated Benefit ($) | Payments During Last Fiscal Year ($) | ||||||||||||||||
Robert C. Rowe | NorthWestern Energy Pension Plan | 13.00 | 949,969 | — | ||||||||||||||||
Brian B. Bird | NorthWestern Corporation Pension Plan | 18.08 | 282,541 | — | ||||||||||||||||
Heather H. Grahame (1) | — | — | — | — | ||||||||||||||||
Crystal D. Lail | NorthWestern Corporation Pension Plan | 18.93 | 155,778 | — | ||||||||||||||||
Curtis T. Pohl | NorthWestern Corporation Pension Plan | 35.39 | 535,642 | — | ||||||||||||||||
Bobbi L. Schroeppel | NorthWestern Corporation Pension Plan | 23.63 | 278,629 | — |
Name | Plan Name | Number of Years Credited Service (#) | Present Value of Accumulated Benefit ($) | Payments During Last Fiscal Year ($) | |||||||
Robert C. Rowe | NorthWestern Energy Pension Plan | 9.00 | 527,773 | — | |||||||
Brian B. Bird | NorthWestern Corporation Pension Plan | 14.08 | 208,099 | — | |||||||
Heather H. Grahame (1) | — | — | — | — | |||||||
Curtis T. Pohl | NorthWestern Corporation Pension Plan | 31.39 | 424,285 | — | |||||||
Bobbi L. Schroeppel | NorthWestern Corporation Pension Plan | 19.63 | 200,711 | — |
We calculated the present value of accumulated benefits assuming benefits commence at age 65 and using the discount rate, mortality assumption, and assumed payment form consistent with those disclosed in Note 14 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, | Name | Cash Balance ($) | |||||||||
Robert C. Rowe | |||||||||||
Brian B. Bird | |||||||||||
Heather H. Grahame | — | ||||||||||
Crystal D. Lail | 136,080 | ||||||||||
Curtis T. Pohl | |||||||||||
Bobbi L. Schroeppel | |||||||||||
NorthWestern Energy | Proxy Statement | Page 39 |
Executive Pay |
Executive Contributions in 2017 | Registrant Contributions in 2017 | Aggregate Earnings in 2017 | Aggregate Withdrawals/ Distributions in 2017 | Aggregate Balance on December 31, 2017 | ||||||||||||||||
Robert C. Rowe (1) | $ | 206,165 | $ | — | $ | 643,984 | $ | — | $ | 8,008,104 |
Executive Contributions in Last Fiscal Year ($) | Registrant Contributions in Last Fiscal Year ($) (1) | Aggregate Earnings in Last Fiscal Year ($) (1) | Aggregate Withdrawals/ Distributions in Last Fiscal Year ($) | Aggregate Balance on December 31, 2021 ($) (2) | ||||||||||||||||||||||
Robert C. Rowe (3) | — | 362,463 | 431,433 | — | 10,225,220 | |||||||||||||||||||||
Brian B. Bird | — | 125,342 | 20,650 | — | 488,609 | |||||||||||||||||||||
Heather H. Grahame | — | 87,814 | 14,845 | — | 351,257 | |||||||||||||||||||||
Crystal D. Lail | — | 41,608 | 1,823 | — | 43,128 | |||||||||||||||||||||
Curtis T. Pohl | — | 68,504 | 11,659 | — | 275,884 | |||||||||||||||||||||
Bobbi L. Schroeppel | — | 46,723 | 7,912 | — | 187,202 |
NorthWestern Energy | Proxy Statement | Page 40 |
Executive Pay |
Name | Base Salary ($) | Targeted Annual Incentive ($) | 2x Base Salary + 2x Targeted Annual Incentive ($) | Interrupted Annual Bonus ($) (1) | COBRA Premiums ($) (2) | Outplacement Services ($) | Amount of Potential Severance Benefit ($) | Name | Base Salary ($) | Targeted Annual Incentive ($) | 2x Base Salary + 2x Targeted Annual Incentive ($) | Interrupted Annual Bonus ($) (1) | COBRA Premiums ($) (2) | Outplacement Services ($) | Amount of Potential Severance Benefit ($) | |||||||||||||||||||||||||||||||||||||||||||||||||
Robert C. Rowe | 611,956 | 611,956 | 2,447,824 | 560,960 | 13,020 | 12,000 | 3,033,804 | Robert C. Rowe | 676,754 | 676,754 | 2,707,016 | 620,358 | 33,344 | 12,000 | 3,372,718 | |||||||||||||||||||||||||||||||||||||||||||||||||
Brian B. Bird | 423,280 | 211,640 | 1,269,840 | 194,003 | 42,280 | 12,000 | 1,518,123 | Brian B. Bird | 500,000 | 375,000 | 1,750,000 | 343,750 | 46,070 | 12,000 | 2,151,820 | |||||||||||||||||||||||||||||||||||||||||||||||||
Heather H. Grahame | 370,634 | 166,785 | 1,074,838 | 152,886 | 45,334 | 12,000 | 1,285,058 | Heather H. Grahame | 441,475 | 242,811 | 1,368,573 | 222,577 | 36,077 | 12,000 | 1,639,226 | |||||||||||||||||||||||||||||||||||||||||||||||||
Crystal D. Lail | Crystal D. Lail | 375,000 | 187,500 | 1,125,000 | 171,875 | 33,344 | 12,000 | 1,342,219 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Curtis T. Pohl | 287,620 | 115,048 | 805,336 | 105,461 | 29,386 | 12,000 | 952,183 | Curtis T. Pohl | 318,076 | 127,230 | 890,613 | 116,628 | 32,662 | 12,000 | 1,051,903 | |||||||||||||||||||||||||||||||||||||||||||||||||
Bobbi L. Schroeppel | 265,810 | 93,034 | 717,688 | 85,281 | 43,215 | 12,000 | 858,184 | Bobbi L. Schroeppel | 301,999 | 120,800 | 845,597 | 110,733 | 47,958 | 12,000 | 1,016,288 |
The table to the right shows the amount of potential stock value that would have been received, based on an assumed change in control date of December 31, | Name | Value of Accelerated Stock Vesting ($) | ||||||||||||
Robert C. Rowe | ||||||||||||||
Brian B. Bird | ||||||||||||||
Heather H. Grahame | ||||||||||||||
Crystal D. Lail | 774,404 | |||||||||||||
Curtis T. Pohl | ||||||||||||||
Bobbi L. Schroeppel |
NorthWestern Energy | Proxy Statement | Page 41 |
Executive Pay |
Future Vesting Date | Assumed 12/31/21 Death / Disability | Assumed 12/31/21 Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Original Grant (#) | Percent to Vest (%) | Vesting Value ($) (1) | Original Grant (#) | Percent to Vest (%) | Vesting Value ($) (1) | |||||||||||||||||||||||||||||||||||||||||||||
Robert C. Rowe | ||||||||||||||||||||||||||||||||||||||||||||||||||
Chief Executive Officer | ERRP | 12/31/2025 | 9,380 | 100.0 | % | 536,161 | 9,380 | — | % | — | ||||||||||||||||||||||||||||||||||||||||
LTIP | 12/31/2022 | 29,689 | 33.3 | % | 565,674 | 29,689 | 33.3 | % | 565,674 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2024 | 8,976 | 100.0 | % | 513,068 | 8,976 | 20.0 | % | 102,614 | |||||||||||||||||||||||||||||||||||||||||
LTIP | 12/31/2021 | 17,755 | 66.7 | % | 676,922 | 17,755 | 66.7 | % | 676,922 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2023 | 6,414 | 100.0 | % | 366,624 | 6,414 | 40.0 | % | 146,650 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2022 | 6,976 | 100.0 | % | 398,748 | 6,976 | 60.0 | % | 239,249 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2021 | 5,862 | 100.0 | % | 335,072 | 5,862 | 80.0 | % | 268,058 | |||||||||||||||||||||||||||||||||||||||||
TOTAL | $ | 3,392,269 | TOTAL | $ | 1,999,166 | |||||||||||||||||||||||||||||||||||||||||||||
Brian B. Bird | ||||||||||||||||||||||||||||||||||||||||||||||||||
President and Chief Operating Officer | ERRP | 12/31/2025 | 3,465 | 100.0 | % | 198,059 | 3,465 | — | % | — | ||||||||||||||||||||||||||||||||||||||||
LTIP | 12/31/2022 | 13,853 | 33.3 | % | 263,946 | 13,853 | 33.3 | % | 263,946 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2024 | 2,587 | 100.0 | % | 147,873 | 2,587 | 20.0 | % | 29,575 | |||||||||||||||||||||||||||||||||||||||||
LTIP | 12/31/2021 | 6,141 | 66.7 | % | 234,130 | 6,141 | 66.7 | % | 234,130 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2023 | 1,849 | 100.0 | % | 105,689 | 1,849 | 40.0 | % | 42,276 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2022 | 2,011 | 100.0 | % | 114,949 | 2,011 | 60.0 | % | 68,969 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2021 | 2,027 | 100.0 | % | 115,863 | 2,027 | 80.0 | % | 92,691 | |||||||||||||||||||||||||||||||||||||||||
TOTAL | $ | 1,180,509 | TOTAL | $ | 731,586 | |||||||||||||||||||||||||||||||||||||||||||||
Heather H. Grahame | ||||||||||||||||||||||||||||||||||||||||||||||||||
General Counsel and Vice President - Regulatory & Federal Gov't Affairs | ERRP | 12/31/2025 | 2,550 | 100.0 | % | 145,758 | 2,550 | — | % | — | ||||||||||||||||||||||||||||||||||||||||
LTIP | 12/31/2022 | 7,747 | 33.3 | % | 147,606 | 7,747 | 33.3 | % | 147,606 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2024 | 1,952 | 100.0 | % | 111,576 | 1,952 | 20.0 | % | 22,315 | |||||||||||||||||||||||||||||||||||||||||
LTIP | 12/31/2021 | 5,212 | 66.7 | % | 198,711 | 5,212 | 66.7 | % | 198,711 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2023 | 1,395 | 100.0 | % | 79,738 | 1,395 | 40.0 | % | 31,895 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2022 | 1,474 | 100.0 | % | 84,254 | 1,474 | 60.0 | % | 50,552 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2021 | 1,420 | 100.0 | % | 81,167 | 1,420 | 80.0 | % | 64,934 | |||||||||||||||||||||||||||||||||||||||||
TOTAL | $ | 848,810 | TOTAL | $ | 516,014 |
Future Vesting Date | Assumed 12/31/17 Death / Disability | Assumed 12/31/17 Retirement | ||||||||||||||||||||||
Original Grant (#) | Percent to Vest (%) | Vesting Value ($) (1) | Original Grant (#) | Percent to Vest (%) | Vesting Value ($) (1) | |||||||||||||||||||
Robert C. Rowe | ||||||||||||||||||||||||
President and Chief Executive Officer | ERRP | 12/31/2022 | 5,862 | 100.0 | % | 349,961 | 5,862 | — | % | — | ||||||||||||||
LTIP | 12/31/2019 | 24,821 | 33.3 | % | 493,937 | 24,821 | 33.3 | % | 493,937 | |||||||||||||||
ERRP | 12/31/2021 | 6,505 | 100.0 | % | 388,349 | 6,505 | 20.0 | % | 77,670 | |||||||||||||||
LTIP | 12/31/2018 | 22,982 | 66.7 | % | 915,141 | 22,982 | 66.7 | % | 915,141 | |||||||||||||||
ERRP | 12/31/2020 | 6,458 | 100.0 | % | 385,543 | 6,458 | 40.0 | % | 154,217 | |||||||||||||||
ERRP | 12/31/2018 | 6,410 | 100.0 | % | 382,677 | 6,410 | 60.0 | % | 229,606 | |||||||||||||||
ERRP | 12/31/2018 | 3,878 | 100.0 | % | 231,517 | 3,878 | 80.0 | % | 185,213 | |||||||||||||||
TOTAL | $ | 3,147,124 | TOTAL | $ | 2,055,785 | |||||||||||||||||||
Brian B. Bird | ||||||||||||||||||||||||
Vice President and Chief Financial Officer | ERRP | 12/31/2022 | 2,027 | 100.0 | % | 121,012 | 2,027 | — | % | — | ||||||||||||||
LTIP | 12/31/2019 | 8,584 | 33.3 | % | 170,821 | 8,584 | 33.3 | % | 170,821 | |||||||||||||||
ERRP | 12/31/2021 | 2,250 | 100.0 | % | 134,325 | 2,250 | 20.0 | % | 26,865 | |||||||||||||||
LTIP | 12/31/2018 | 7,948 | 66.7 | % | 316,489 | 7,948 | 66.7 | % | 316,489 | |||||||||||||||
ERRP | 12/31/2020 | 2,233 | 100.0 | % | 133,310 | 2,233 | 40.0 | % | 53,324 | |||||||||||||||
ERRP | 12/31/2018 | 2,103 | 100.0 | % | 125,549 | 2,103 | 60.0 | % | 75,329 | |||||||||||||||
ERRP | 12/31/2018 | 1,272 | 100.0 | % | 75,938 | 1,272 | 80.0 | % | 60,751 | |||||||||||||||
TOTAL | $ | 1,077,444 | TOTAL | $ | 703,579 |
Executive Pay |
Future Vesting Date | Assumed 12/31/21 Death / Disability | Assumed 12/31/21 Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Original Grant (#) | Percent to Vest (%) | Vesting Value ($) (1) | Original Grant (#) | Percent to Vest (%) | Vesting Value ($) (1) | |||||||||||||||||||||||||||||||||||||||||||||
Crystal D. Lail | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vice President and Chief Financial Officer | ERRP | 12/31/2025 | 2,166 | 100.0 | % | 123,809 | 2,166 | — | % | — | ||||||||||||||||||||||||||||||||||||||||
LTIP | 12/31/2022 | 6,679 | 33.3 | % | 127,257 | 6,679 | 33.3 | % | 127,257 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2024 | 1,260 | 100.0 | % | 72,022 | 1,260 | 20.0 | % | 14,404 | |||||||||||||||||||||||||||||||||||||||||
LTIP | 12/31/2021 | 1,412 | 66.7 | % | 53,834 | 1,412 | 66.7 | % | 53,834 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2023 | 638 | 100.0 | % | 36,468 | 638 | 40.0 | % | 14,587 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2022 | 694 | 100.0 | % | 39,669 | 694 | 60.0 | % | 23,801 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2021 | 699 | 100.0 | % | 39,955 | 699 | 80.0 | % | 31,964 | |||||||||||||||||||||||||||||||||||||||||
TOTAL | $ | 493,013 | TOTAL | $ | 265,847 | |||||||||||||||||||||||||||||||||||||||||||||
Curtis T. Pohl | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vice President - Retail Operations | ERRP | 12/31/2025 | 1,470 | 100.0 | % | 84,025 | 1,470 | — | % | — | ||||||||||||||||||||||||||||||||||||||||
LTIP | 12/31/2022 | 3,721 | 33.3 | % | 70,897 | 3,721 | 33.3 | % | 70,897 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2024 | 1,406 | 100.0 | % | 80,367 | 1,406 | 20.0 | % | 16,073 | |||||||||||||||||||||||||||||||||||||||||
LTIP | 12/31/2021 | 2,504 | 66.7 | % | 95,467 | 2,504 | 66.7 | % | 95,467 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2023 | 1,005 | 100.0 | % | 57,446 | 1,005 | 40.0 | % | 22,978 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2022 | 1,093 | 100.0 | % | 62,476 | 1,093 | 60.0 | % | 37,486 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2021 | 1,102 | 100.0 | % | 62,990 | 1,102 | 80.0 | % | 50,392 | |||||||||||||||||||||||||||||||||||||||||
TOTAL | $ | 513,668 | TOTAL | $ | 293,293 | |||||||||||||||||||||||||||||||||||||||||||||
Bobbi L. Schroeppel | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vice President - Customer Care, Communications and HR | ERRP | 12/31/2025 | 1,395 | 100.0 | % | 79,738 | 1,395 | — | % | — | ||||||||||||||||||||||||||||||||||||||||
LTIP | 12/31/2022 | 3,239 | 33.3 | % | 61,714 | 3,239 | 33.3 | % | 61,714 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2024 | 1,335 | 100.0 | % | 76,309 | 1,335 | 20.0 | % | 15,262 | |||||||||||||||||||||||||||||||||||||||||
LTIP | 12/31/2021 | 1,965 | 66.7 | % | 74,917 | 1,965 | 66.7 | % | 74,917 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2023 | 710 | 100.0 | % | 40,584 | 710 | 40.0 | % | 16,233 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2022 | 772 | 100.0 | % | 44,128 | 772 | 60.0 | % | 26,477 | |||||||||||||||||||||||||||||||||||||||||
ERRP | 12/31/2021 | 764 | 100.0 | % | 43,670 | 764 | 80.0 | % | 34,936 | |||||||||||||||||||||||||||||||||||||||||
TOTAL | $ | 421,060 | TOTAL | $ | 229,539 |
Future Vesting Date | Assumed 12/31/17 Death / Disability | Assumed 12/31/17 Retirement | ||||||||||||||||||||||
Original Grant (#) | Percent to Vest (%) | Vesting Value ($) (1) | Original Grant (#) | Percent to Vest (%) | Vesting Value ($) (1) | |||||||||||||||||||
Heather H. Grahame | ||||||||||||||||||||||||
Vice President - General Counsel / Regulatory & Federal Gov't Affairs | ERRP | 12/31/2022 | 1,420 | 100.0 | % | 84,774 | 1,420 | — | % | — | ||||||||||||||
LTIP | 12/31/2019 | 6,013 | 33.3 | % | 119,659 | 6,013 | 33.3 | % | 119,659 | |||||||||||||||
ERRP | 12/31/2021 | 1,576 | 100.0 | % | 94,087 | 1,576 | 20.0 | % | 18,817 | |||||||||||||||
LTIP | 12/31/2018 | 5,568 | 66.7 | % | 221,717 | 5,568 | 66.7 | % | 221,717 | |||||||||||||||
ERRP | 12/31/2020 | 1,564 | 100.0 | % | 93,371 | 1,564 | 40.0 | % | 37,348 | |||||||||||||||
ERRP | 12/31/2018 | 1,531 | 100.0 | % | 91,401 | 1,531 | 60.0 | % | 54,840 | |||||||||||||||
ERRP | 12/31/2018 | 926 | 100.0 | % | 55,282 | 926 | 80.0 | % | 44,226 | |||||||||||||||
TOTAL | $ | 760,291 | TOTAL | $ | 496,608 | |||||||||||||||||||
Curtis T. Pohl | ||||||||||||||||||||||||
Vice President - Retail Operations | ERRP | 12/31/2022 | 1,102 | 100.0 | % | 65,789 | 1,102 | — | % | — | ||||||||||||||
LTIP | 12/31/2019 | 3,500 | 33.3 | % | 69,650 | 3,500 | 33.3 | % | 69,650 | |||||||||||||||
ERRP | 12/31/2021 | 1,223 | 100.0 | % | 73,013 | 1,223 | 20.0 | % | 14,603 | |||||||||||||||
LTIP | 12/31/2018 | 3,240 | 66.7 | % | 129,016 | 3,240 | 66.7 | % | 129,016 | |||||||||||||||
ERRP | 12/31/2020 | 1,214 | 100.0 | % | 72,476 | 1,214 | 40.0 | % | 28,990 | |||||||||||||||
ERRP | 12/31/2018 | 1,205 | 100.0 | % | 71,939 | 1,205 | 60.0 | % | 43,163 | |||||||||||||||
ERRP | 12/31/2018 | 729 | 100.0 | % | 43,521 | 729 | 80.0 | % | 34,817 | |||||||||||||||
TOTAL | $ | 525,405 | TOTAL | $ | 320,239 | |||||||||||||||||||
Bobbi L. Schroeppel | ||||||||||||||||||||||||
Vice President - Customer Care, Communications, and Human Resources | ERRP | 12/31/2022 | 764 | 100.0 | % | 45,611 | 764 | — | % | — | ||||||||||||||
LTIP | 12/31/2019 | 2,689 | 33.3 | % | 53,511 | 2,689 | 33.3 | % | 53,511 | |||||||||||||||
ERRP | 12/31/2021 | 846 | 100.0 | % | 50,506 | 846 | — | % | — | |||||||||||||||
LTIP | 12/31/2018 | 2,490 | 66.7 | % | 99,152 | 2,490 | 66.7 | % | 99,152 | |||||||||||||||
ERRP | 12/31/2020 | 839 | 100.0 | % | 50,088 | 839 | — | % | — | |||||||||||||||
ERRP | 12/31/2018 | 833 | 100.0 | % | 49,730 | 833 | — | % | — | |||||||||||||||
ERRP | 12/31/2018 | 490 | 100.0 | % | 29,253 | 490 | — | % | — | |||||||||||||||
TOTAL | $ | 377,851 | TOTAL | $ | 152,663 |
2021 Non-Employee Director Compensation Schedule | Cash ($) | Shares (#) | ||||||
New Member Initial Stock Grant | — | 1,000 | ||||||
Board Chair Annual Retainer (1) | 150,000 | 3,750 | ||||||
Board Member Annual Retainer | 50,000 | 2,750 | ||||||
Committee Chair Annual Retainer | 10,000 | — | ||||||
Committee Member Annual Retainer | 10,000 | — | ||||||
(1) The Board chair does not receive the Board Member annual cash and stock retainers. |
NorthWestern Energy | Proxy Statement | Page 43 |
Executive Pay |
In 2017, the Compensation Committee asked Willis Towers Watson to update its review of the competitive market data concerning Board compensation from peer company comparisons so that the Compensation Committee could determine 2018 compensation levels for non-employee directors. Based upon this review, the Compensation Committee made no changes to the compensation provided to our non-employee directors. The table to the right presents the 2018 compensation schedule for non-employee directors. | Cash ($) | Shares (#) | |||||
Annual Retainer | |||||||
New Member Initial Stock Grant | — | 1,000 | |||||
Board Chair | 125,000 | 3,750 | |||||
Board Member | 25,000 | 2,750 | |||||
Committee Chair | 10,000 | — | |||||
Meeting Fees (Board Chair does not receive meeting fees) | |||||||
Board Meeting | 2,000 | — | |||||
Committee Meeting | 2,000 | — |
Fees Earned or Paid in Cash ($) | Stock Awards (1) ($) | Total ($) | |||||||||||||||
Dana J. Dykhouse, Board Chair, Compensation Chair (2) | 115,000 | 157,190 | 272,190 | ||||||||||||||
Stephen P. Adik, Board Chair (2) | 75,000 | 204,263 | 279,263 | ||||||||||||||
Anthony T. Clark | 70,000 | 149,793 | 219,793 | ||||||||||||||
Jan R. Horsfall, Operations Chair | 80,000 | 157,190 | 237,190 | ||||||||||||||
Julia M. Johnson, Governance Chair (2) | 40,000 | 157,190 | 197,190 | ||||||||||||||
Britt E. Ide | 70,000 | 157,190 | 227,190 | ||||||||||||||
Linda G. Sullivan, Audit Chair (3) | 80,000 | 149,793 | 229,793 | ||||||||||||||
Mahvash Yazdi, Compensation Chair | 75,000 | 149,793 | 224,793 | ||||||||||||||
Jeffrey W. Yingling, Governance Chair (2) | 75,000 | 149,793 | 224,793 |
Fees Earned or Paid in Cash (1) ($) | Stock Awards (2) ($) | Total ($) | |||||||
E. Linn Draper Jr., Board Chair | 125,000 | 214,163 | 339,163 | ||||||
Stephen P. Adik, Audit Chair | 67,000 | 157,053 | 224,053 | ||||||
Dorothy M. Bradley (retired April 27, 2017) | 19,000 | 157,053 | 176,053 | ||||||
Anthony T. Clark | 47,000 | 213,923 | 260,923 | ||||||
Dana J. Dykhouse, Compensation Chair | 67,000 | 156,750 | 223,750 | ||||||
Jan R. Horsfall | 57,000 | 156,750 | 213,750 | ||||||
Britt E. Ide (joined April 27, 2017) | 30,700 | 159,666 | 190,366 | ||||||
Julia L. Johnson, Governance Chair | 67,000 | 157,053 | 224,053 | ||||||
Linda G. Sullivan (joined April 27, 2017) | 30,700 | 159,666 | 190,366 |
Director Pay |
•Corporate Governance Guidelines | and Senior Financial Officers •Insider Trading Policy •Related Persons Transactions Policy •Complaint Procedures for the Audit Committee of the Board | |||||
What We Do | ||||||
•Annual election of all directors. | ||||||
•Majority vote plus resignation standard in uncontested elections. If a director receives more “WITHHOLD AUTHORITY” votes than “FOR” votes, the director must submit a resignation for the Board to consider. | ||||||
•Allow shareholders owning 25 percent of our shares to call a special meeting. | ||||||
•Independent board. Our Board is comprised entirely of independent directors, except our CEO. | ||||||
•Independent Board Chair. | ||||||
•Independent Board committees. Each of our Board committees (audit, compensation, governance, and | ||||||
•Committee authority to retain independent advisors. Each of our Board committees has the authority to retain independent advisors, which will be paid for by the company. | ||||||
•Code of Conduct and Ethics. We are committed to operating with honesty and integrity and maintaining the highest level of ethical conduct. Our Code of Conduct and Ethics applies to all employees, as well as the Board. We also have a separate Code of Ethics for the Chief Executive Officer and Senior Financial Officers concerning financial reporting and other related matters. | ||||||
•Robust stock ownership guidelines for executive officers (2x to 6x) and | ||||||
NorthWestern Energy | Proxy Statement | Page 45 |
What We Don’t Do | ||||||
•Poison pill. We do not have a shareholders rights plan or poison pill. | ||||||
•Hedging of company securities. We do not allow our directors, executives, or employees to hedge company securities. | ||||||
•Corporate political contributions. We do not make contributions to candidates for political office, political parties, or committees, or political committees organized to advance political candidates. | ||||||
•Supermajority voting. We do not have supermajority voting provisions in our certificate of incorporation or bylaws, except to approve (or amend provisions concerning) certain business combinations or mergers. | ||||||
NorthWestern Energy | Proxy Statement | Page 46 |
Corporate Governance |
Clark | Dykhouse | Horsfall | Ide | Rowe | Sullivan | Yazdi | Yingling | |||||||||||||||||||||
Utility | l | l | l | l | l | l | ||||||||||||||||||||||
Finance | l | l | l | l | l | l | ||||||||||||||||||||||
Executive | l | l | l | l | l | l | l | l | ||||||||||||||||||||
Regulatory | l | l | l | l | l | |||||||||||||||||||||||
Engineering | l | |||||||||||||||||||||||||||
Tech / Info / Cyber | l | l | l | l | ||||||||||||||||||||||||
Service Territory | l | l | l | |||||||||||||||||||||||||
Legal / | l | l | l | l | ||||||||||||||||||||||||
Marketing | l | l | ||||||||||||||||||||||||||
Board | l | l | l | l | l | l | l | l | ||||||||||||||||||||
NACD | l | l | l | l | l | l | l | l | ||||||||||||||||||||
Diversity | Female | Female | Female; Middle Eastern descent |
NorthWestern Energy | Proxy Statement | Page 47 |
Corporate Governance |
NorthWestern Corporation Board Diversity Matrix (as of March 7, 2022) | ||||||||||||||
Total Number of Directors | 8 | |||||||||||||
Female | Male | Non-Binary | Did Not Disclose Gender | |||||||||||
Part I: Gender Identity | ||||||||||||||
Directors | 3 | 5 | 0 | 0 | ||||||||||
Part II: Demographic Background | ||||||||||||||
African American or Black | 0 | 0 | 0 | 0 | ||||||||||
Alaskan Native or Native American | 0 | 0 | 0 | 0 | ||||||||||
Asian | 0 | 0 | 0 | 0 | ||||||||||
Hispanic or Latinx | 0 | 0 | 0 | 0 | ||||||||||
Native Hawaiian or Pacific Islander | 0 | 0 | 0 | 0 | ||||||||||
White | 3 | 5 | 0 | 0 | ||||||||||
Two or More Races or Ethnicities | 0 | 0 | 0 | 0 | ||||||||||
LGBTQ+ | 0 | |||||||||||||
Did not disclose Demographic Background | 0 |
NorthWestern Energy | Proxy Statement | Page 48 |
Corporate Governance |
Anthony T. Clark Director since 2016 Age: | ||||||||||||||
Senior Advisor, Wilkinson Barker; former Commissioner, FERC and NDPSC | ||||||||||||||
Biography: Mr. Clark is a Senior Advisor with Wilkinson Barker Knauer, Skills and Qualifications: Our Board concluded that Mr. Clark is qualified to serve as a Board member because of his 15+ years of experience as a federal and state utility regulator. He has in-depth knowledge of the regulatory, public policy and market dynamics that are impacting the operations of current and future opportunities for electric and natural gas utilities. His extensive experience at the nexus of complex federal and state jurisdictional issues, including the development of electricity markets, market oversight and enforcement and permitting of large energy infrastructure projects is important for our company. He has additional experience regarding employment matters gained from his time as the North Dakota Labor Commissioner. Mr. Clark also has been an NACD Governance Fellow since 2017, and in 2022 the National Association of Corporate Directors recognized him as NACD Directorship CertifiedTM, demonstrating his commitment to boardroom excellence. | ||||||||||||||
Experience Highlights: Utility, Executive, Regulatory, Legal/Public Policy, Board, and NACD Independent Director NorthWestern Committees: Compensation, Governance Other Public Boards: None | ||||||||||||||
Dana J. Dykhouse Director since 2009 Age: | |||||||||||||||||
Chief Executive Officer, First PREMIER Bank | |||||||||||||||||
Biography: Mr. Dykhouse is the Chief Executive Officer of First PREMIER Bank, a regional bank headquartered in Sioux Falls, South Dakota, with bank locations across eastern South Dakota (since 1995). He has served in a variety of executive leadership roles in community and professional organizations and non-public company boards in South Dakota. Skills and Qualifications: Our Board concluded that Mr. Dykhouse is qualified to serve as a Board member because of his reputation as a respected civic, community and professional leader in South Dakota. Mr. Dykhouse has served as chief executive officer of a | |||||||||||||||||
Experience Highlights: Finance, Executive, Service Territory, Board, and NACD Independent Director NorthWestern Committees: Other Public Boards: None | |||||||||||||||||
NorthWestern Energy | Proxy Statement | Page 49 |
Corporate Governance |
Jan R. Horsfall Director since 2015 Age: | |||||||||||||||||
Biography: Mr. Horsfall is the Skills and Qualifications: Our Board concluded that Mr. Horsfall is qualified to serve as a Board member because of his executive experience as a chief executive officer, chief marketing officer and other executive leadership positions. He is financially literate according to | |||||||||||||||||
Experience Highlights: Finance, Executive, Marketing, Tech / Info / Cyber, Pub Policy, Board, and NACD Governance Fellow Independent Director NorthWestern Committees: Audit, Other Public Boards: None | |||||||||||||||||
Britt E. Ide Director since 2017 Age: | |||||||||||||||||
President, Ide Energy & Strategy | |||||||||||||||||
Biography: Ms. Ide is the President of Ide Energy & Strategy (since 2011) Skills and Qualifications: Our Board concluded that Ms. Ide is qualified to serve as a Board member because of her 25+ years of business, engineering and legal experience, her utility and energy industry experience, her technology background, and, as a resident of our service territory, her local perspective on relevant regulatory, political and community issues. Ms. Ide has been an NACD | |||||||||||||||||
Experience Highlights: Utility, Executive, Regulatory, Engineering, Tech / Info / Cyber, Service Territory, Independent Director NorthWestern Committees: Compensation, Governance Other Public Boards: | |||||||||||||||||
NorthWestern Energy | Proxy Statement | Page 50 |
Corporate Governance |
Robert C. Rowe Director since 2008 Age: | ||||||||||||||||||
Chief Executive Officer, NorthWestern Corporation | ||||||||||||||||||
Biography: Mr. Rowe is the Skills and Qualifications: Our Board concluded that Mr. Rowe is qualified to serve as a Board member because of his position as | ||||||||||||||||||
Experience Highlights: Utility, Finance, Executive, Regulatory, Service Territory, Legal / Public Policy, Board, and NACD Non-Independent Director NorthWestern Committees: None Other Public Boards: None | ||||||||||||||||||
Linda G. Sullivan Director since 2017 Age: | |||||||||||||||||
Retired Executive Vice President and Chief Financial Officer of American Water | |||||||||||||||||
Biography: Ms. Sullivan is a member of the Board of Directors of AltaGas Ltd., a North American energy infrastructure business (TSE: ALA), serving on its Audit Committee (chair as of March 5, 2022) and Human Resources and Compensation Committee. She is the retired executive vice president and chief financial officer (CFO) of American Water Works Company, Inc., the largest publicly traded U.S. water and wastewater utility Skills and Qualifications: Our Board concluded that Ms. Sullivan is qualified to serve as a Board member on our Board because of her | |||||||||||||||||
Experience Highlights: Utility, Finance, Executive, Regulatory, Tech / Info / Cyber, Board, and NACD Independent Director NorthWestern Committees: Audit (chair), Operations Other Public Boards: | |||||||||||||||||
NorthWestern Energy | Proxy Statement | Page 51 |
Corporate Governance |
Mahvash YazdiDirector since 2019 Age: 70 | |||||||||||||||||
President, Feasible Management Consulting | |||||||||||||||||
Biography: Ms. Yazdi is the President of Feasible Management Consulting, a company that provides strategic consulting in energy, innovation, technology, and telecommunication (since 2012). As a nationally known leader, she continues to bring her expertise and insights to the publicly held, private and non-profit company boards on which she serves. She is currently on the board of Anterix (Nasdaq: ATEX), a telecommunication company with the largest licensed 900MHZ spectrum in the United States. She is the Chair of Prologis (NYSE: PLD) Energy Advisory Board, focusing on transportation and energy for one of the world’s largest logistic companies and also is a member of the Advisory Board of Infosys Corporation and serves in a strategic advisory role for Energy Capital Ventures. As the former senior vice president of business integration and chief information officer (1997-2012) of Edison International and Southern California Edison, she successfully oversaw business transformation initiatives and technology implementations of smart meter and smart grid programs. She was also the co-chair of the Edison Electric Institute’s CIO advisory council, leading the energy industry activities in cyber security and privacy. Prior to that role, she held various roles at Hughes Electronics (1980-1997), including vice president and CIO, where she was a member of the executive committee and engaged in business transformation and M&A activities. Skills and Qualifications: Our Board concluded that Ms. Yazdi is qualified to serve as a Board Member because of her significant experience as a leader in multiple industries. She is nationally recognized for her expertise in corporate information technologies and has served on the boards of multiple technology companies. She has extensive experience and know-ledge of the utility/power industry, where she was charged with setting strategies and leading people to achieve greater growth, efficiency and performance. As former board member in the telecommunications and healthcare industries, she has been an active member of various board committees, including, Audit, Compensation, Governance, and Environmental/Safety/Operations/Technology. The National Association of Corporate Directors recognizes Ms. Yazdi as a NACD Leadership Fellow and NACD Directorship CertifiedTM, demonstrating her commitment to boardroom excellence. | |||||||||||||||||
Experience Highlights: Utility, Finance, Executive, Regulatory, Tech / Info / Cyber, Board, and NACD Leadership Fellow and NACD Directorship CertifiedTM Independent Director NorthWestern Committees: Compensation (Chair), Operations Other Public Boards: Anterix, Inc. | |||||||||||||||||
Jeffrey W. YinglingDirector since 2019 Age: 62 | |||||||||||||||||
Partner, Energy Capital Ventures | |||||||||||||||||
Biography: Mr. Yingling is a founding Partner of Energy Capital Ventures, a strategic venture fund formed to invest in early stage energy companies (since 2020). Immediately prior to forming this fund, he was a Senior Advisor in Investment Banking at Guggenheim Securities, LLC, specializing in power, energy and renewables (2017-20). From 2006-2017, he held various roles at J.P. Morgan Securities LLC, most recently as Managing Director and Head of Midwest Investment Banking where he also served as a member of the Midwest Operating Committee, led the Corporate Investment Banking practice in the region, and was the Relationship Manager for many of the firm's top power, utility and large corporate clients. He also spent more than 15 years at Morgan Stanley and was Co-Head of Dean Witter Reynolds' Public Utility Group prior to the firm's merger with Morgan Stanley. Mr. Yingling is a member of the board of directors of LendingPoint Consolidated, Inc., a data and technology platform that originates unsecured personal loans both direct to consumer online and at the point of sale and a member of the advisory board of Agentis Energy, a technology company revolutionizing the way utilities engage and empower businesses to manage energy usage. He previously served on the board of directors of Navigant Consulting, Inc. (formerly NYSE: NCI) (2018-19), before it was acquired by another company. Skills and Qualifications: Our Board concluded that Mr. Yingling is qualified to serve as a Board member on our Board because of his 35+ years of financial, managerial and strategy experience gained from his experience in senior executive and management positions at leading international financial institutions and in the professional service sector, particularly with respect to the power and energy industry. The National Association of Corporate Directors recognizes Mr. Yingling as a NACD Leadership Fellow and NACD Directorship CertifiedTM, demonstrating his commitment to boardroom excellence. | |||||||||||||||||
Experience Highlights: Utility, Finance, Executive, Tech / Info / Cyber, and NACD Leadership Fellow and NACD Directorship CertifiedTM Independent Director NorthWestern Committees: Audit, Governance (Chair) Other Public Boards: None | |||||||||||||||||
NorthWestern Energy | Proxy Statement | Page 52 |
Corporate Governance |
NorthWestern Energy | Proxy Statement | Page 53 |
Corporate Governance |
NorthWestern Energy | Proxy Statement | Page 54 |
Corporate Governance |
We have •Nominating and Governance; and | COMMITTEES 100% INDEPENDENT |
Audit Committee | |||||||||||||||||||||||
Primary Responsibilities Our Audit Committee assists the Board with oversight of: | |||||||||||||||||||||||
5 | Meetings in | ||||||||||||||||||||||
Members | |||||||||||||||||||||||
Jan R. Horsfall | |||||||||||||||||||||||
(continued on next page) |
NorthWestern Energy | Proxy Statement | Page 55 |
Corporate Governance |
Financial Expertise, Financial Literacy, and Independence The Board determined that each member of the Audit Audit Committee Report Audit Committee Charter The Audit Committee operates pursuant to a charter that is reviewed annually and was last amended in October | |||||||||||||||||||||||
“The Audit Committee Linda G. Sullivan, Audit Committee Chair | |||||||||||||||||||||||
Governance Committee | |||||||||||||||||||||||
Primary Responsibilities Our •Reviewing public policy and public image matters, including government relations and community support; •Monitoring a process to assess Board effectiveness; and The Governance Committee also reviews and oversees our position on corporate social responsibilities, such as Independence Each member of our Governance Committee meets the independence requirements under the The | |||||||||||||||||||||||
5 | Meetings in | ||||||||||||||||||||||
Members | |||||||||||||||||||||||
Anthony T. Clark | |||||||||||||||||||||||
Britt E. Ide | |||||||||||||||||||||||
“Corporate governance is Governance Committee Chair | |||||||||||||||||||||||
NorthWestern Energy | Proxy Statement | Page 56 |
Corporate Governance |
Compensation Committee | |||||||||||||||||||||||
Primary Responsibilities Our Human Resources Committee (Compensation Committee) acts on behalf of and with the concurrence of the Board with respect to: As discussed in the Compensation Discussion and Analysis section of this proxy statement, the Compensation Committee also considers input on executive compensation from our CEO and CFO. Our Compensation Committee has delegated some of the administration of our executive compensation and benefits plans to our Compensation and Benefits Department. Independence Each member of our Compensation Committee is an “outside director” as formerly defined under Section 162(m) of the Internal Revenue Code, a “non-employee” director within the meaning of Rule 16b-3 under the Exchange Act, and independent under the standards of the Compensation Committee Report Compensation Committee Charter We call | |||||||||||||||||||||||
5 | Meetings in | ||||||||||||||||||||||
Members | |||||||||||||||||||||||
“ Compensation Committee Chair | |||||||||||||||||||||||
Independent Compensation Consultant The Compensation Committee has directly retained Willis Towers Watson as its independent, external compensation consultant for the last several years. Willis Towers Watson is an independent consulting firm that provides services in the areas of executive compensation and benefits and has specific expertise in evaluating compensation in the utility industry. Willis Towers Watson reports directly to the Compensation Committee and, at the Compensation Committee’s request, provides an annual evaluation and analysis of trends in both executive compensation and director compensation. Willis Towers Watson also evaluates other compensation issues at the direct request of the Compensation Committee. The Compensation Committee evaluated the following six factors to assess independence and conflicts of interest before it engaged Willis Towers Watson to do work in 1. The provision of other services to the company by Willis Towers Watson. 2. The amount of fees received from the company by Willis Towers Watson, as a percentage of the firm's total revenues. (continued on next page) | |||||||||||||||||||||||
NorthWestern Energy | Proxy Statement | Page 57 |
Corporate Governance |
3. The policies or procedures of Willis Towers Watson that are designed to prevent conflicts of interest. 4. Any business or personal relationship of a member of the Compensation Committee with the regular members of the Willis Towers Watson executive compensation team serving the company. 5. Any stock of the company owned by the regular members of the Willis Towers Watson executive compensation team serving the company. 6. Any business or personal relationships between the executive officers of the company and the regular members of the Willis Towers Watson executive compensation team serving the company. The Compensation Committee also obtained a representation letter from Willis Towers Watson addressing these six factors and certain other matters related to its independence. Based on the Compensation Committee’s evaluation of these factors and the representations from Willis Towers Watson, the Compensation Committee concluded that Willis Towers Watson is an independent adviser and has no conflicts of interest with us. | |||||||||||
Operations Committee | |||||||||||||||||||||||
Primary Responsibilities Our Board has delegated to our Safety, Environmental, Technology, and Operations Committee (Operations Committee) the following areas of oversight: •Safety; •Environmental compliance practices; •Security (including physical and cyber security, and business continuity); •Operations; and •Innovation, including emerging or competing technologies and alternative energy resources. Independence Each member of our Operations Committee is independent. Operations Committee Charter The Operations Committee was created in early 2020 to allow the Board, through this committee, to devote more time to safety, environmental, technology, and operations matters. The Operations Committee operates pursuant to a charter that is reviewed annually and was last amended in October 2021. The Charter is available on our website at NorthWesternEnergy.com under About Us / Investors / Corporate Governance. | |||||||||||||||||||||||
5 | Meetings in 2021 | ||||||||||||||||||||||
Members | |||||||||||||||||||||||
Jan R. Horsfall (Chair) | |||||||||||||||||||||||
Linda G. Sullivan | |||||||||||||||||||||||
Mahvash Yazdi | |||||||||||||||||||||||
“After the advent of the Safety, Environmental, Technology and Operations Committee two years ago, we've been able to delve much deeper into the critical issues within these areas.” Jan R. Horsfall, Operations Committee Chair | |||||||||||||||||||||||
NorthWestern Energy | Proxy Statement | Page 58 |
Corporate Governance |
NorthWestern Energy | Proxy Statement | Page 59 |
Corporate Governance |
NorthWestern Energy | Proxy Statement | Page 60 |
Corporate Governance |
Audit Committee Report In the performance of the Audit Committee’s oversight function, and in connection with the December 31, 2021, financial statements, the Audit Committee reviewed and discussed the audited financial statements with management. The Audit Committee has discussed the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board (PCAOB) and the SEC. The Audit Committee received the written disclosures and the letter from Deloitte & Touche LLP (Deloitte), our independent registered public accounting firm, required by applicable requirements of the PCAOB regarding the independent accountant’s communications with the Audit Committee concerning independence; and the Audit Committee has discussed with Deloitte the firm’s independence. The compatibility of non-audit services was considered with the auditor’s independence. Based on its review of the consolidated financial statements and discussions with and representations from management and Deloitte referred to above, the Audit Committee recommended to the Board that the audited financial statements be included in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC. | ||||||||
Audit Committee Linda G. Sullivan, Chair Jan R. Horsfall Jeffrey W. Yingling | ||||||||
NorthWestern Energy | Proxy Statement | Page 61 |
Amount and Nature of Beneficial Ownership | |||||||||||||||||||||||||||||
Name of Beneficial Owner | Unrestricted Shares of Common Stock Beneficially Owned Directly (#) | Unrestricted Shares of Common Stock Beneficially Owned Indirectly (#) | Deferred Stock Units (#) | Total Shares of Common Stock Beneficially Owned (#) | Percent of Common Stock (%) | ||||||||||||||||||||||||
Anthony T. Clark | 250 | — | 13,681 | 13,931 | * | ||||||||||||||||||||||||
Dana J. Dykhouse | 34,000 | — | — | 34,000 | * | ||||||||||||||||||||||||
Jan R. Horsfall | 4,105 | — | — | 4,105 | * | ||||||||||||||||||||||||
Britt E. Ide | 57 | — | 9,464 | 9,521 | * | ||||||||||||||||||||||||
Linda G. Sullivan | 74 | — | 15,273 | 15,347 | * | ||||||||||||||||||||||||
Mahvash Yazdi | 1,990 | — | 5,031 | 7,021 | * | ||||||||||||||||||||||||
Jeffrey W. Yingling | 1,000 | — | 7,458 | 8,458 | * | ||||||||||||||||||||||||
Robert C. Rowe | 7,230 | — | 177,747 | 184,977 | * | ||||||||||||||||||||||||
Brian B. Bird | 96,435 | — | 8,548 | 104,983 | * | ||||||||||||||||||||||||
Heather H. Grahame | 17,656 | — | 6,145 | 23,801 | * | ||||||||||||||||||||||||
Crystal D. Lail | 7,194 | — | 755 | 7,949 | * | ||||||||||||||||||||||||
Curtis T. Pohl | 14,450 | — | 4,826 | 19,276 | * | ||||||||||||||||||||||||
Bobbi L. Schroeppel | 22,159 | — | 3,275 | 25,434 | * | ||||||||||||||||||||||||
Directors and Executive Officers as a Group (16 persons) | 216,130 | — | 288,530 | 504,660 | * | ||||||||||||||||||||||||
*Less than one percent |
Amount and Nature of Beneficial Ownership | |||||||||||||
Name of Beneficial Owner | Unrestricted Shares of Common Stock Beneficially Owned Directly (#) | Unrestricted Shares of Common Stock Beneficially Owned Indirectly (#) | Deferred Stock Units (#) | Total Shares of Common Stock Beneficially Owned (#) | Percent of Common Stock (%) | ||||||||
Stephen P. Adik (1) | — | 20,000 | 70,735 | 90,735 | * | ||||||||
E. Linn Draper Jr. | — | — | 129,031 | 129,031 | * | ||||||||
Anthony T. Clark | — | — | 6,635 | 6,635 | * | ||||||||
Dana J. Dykhouse | 25,750 | — | — | 25,750 | * | ||||||||
Jan R. Horsfall | 6,955 | — | — | 6,955 | * | ||||||||
Britt E. Ide | — | — | 5,420 | 5,420 | * | ||||||||
Julia L. Johnson | — | — | 85,647 | 85,647 | * | ||||||||
Linda G. Sullivan | 5,420 | 5,420 | * | ||||||||||
Robert C. Rowe | 11,953 | — | 137,044 | 148,997 | * | ||||||||
Brian B. Bird | 64,797 | — | 2,268 | 67,065 | * | ||||||||
Heather H. Grahame | 23,938 | — | 1,647 | 25,585 | * | ||||||||
Curtis T. Pohl | 36,156 | — | 1,297 | 37,453 | * | ||||||||
Bobbi L. Schroeppel | 17,920 | — | 859 | 18,779 | * | ||||||||
Directors and Executive Officers as a Group (16 persons) | 201,984 | 20,000 | 469,271 | 691,255 | 1.40 | ||||||||
*Less than one percent |
NorthWestern Energy | Proxy Statement | Page 62 |
Satisfaction of Stock Ownership Guidelines | |||||||||||||||||||
Pay Subject to Multiple | Multiple Required | Stock Ownership Requirement ($) | Number of Shares and DSUs Owned (#) | Value of Shares and DSUs Owned (1) ($) | Percent of Guideline Achieved as of Feb. 26, 2018 (1) (%) | Percent of Guideline Achieved Last Year (2) (%) | |||||||||||||
Directors | |||||||||||||||||||
E. Linn Draper Jr., Board Chair | $125,000 | 10x | 1,250,000 | 129,031 | 6,676,064 | 534 | % | 557 | % | ||||||||||
Stephen P. Adik, Audit Chair | $35,000 | 10x | 350,000 | 90,735 | 4,694,629 | 1,341 | % | 1,419 | % | ||||||||||
Anthony T. Clark | $25,000 | 10x | 250,000 | 6,635 | 343,295 | 137 | % | 87 | % | ||||||||||
Dana J. Dykhouse, Comp. Chair | $35,000 | 10x | 350,000 | 25,750 | 1,332,305 | 381 | % | 381 | % | ||||||||||
Jan R. Horsfall | $25,000 | 10x | 250,000 | 6,955 | 359,852 | 144 | % | 138 | % | ||||||||||
Britt E. Ide | $25,000 | 10x | 250,000 | 5,420 | 280,431 | 112 | % | N/A | |||||||||||
Julia L. Johnson, Gov. Chair | $35,000 | 10x | 350,000 | 85,647 | 4,431,376 | 1,266 | % | 1,326 | % | ||||||||||
Linda G. Sullivan | $25,000 | 10x | 250,000 | 5,420 | 280,431 | 112 | % | N/A | |||||||||||
Executives | |||||||||||||||||||
Robert C. Rowe | $595,578 | 6x | 3,573,468 | 148,997 | 7,709,105 | 216 | % | 208 | % | ||||||||||
Brian B. Bird | $411,951 | 4x | 1,647,804 | 67,065 | 3,469,943 | 211 | % | 185 | % | ||||||||||
Heather H. Grahame | $360,714 | 3x | 1,082,142 | 25,585 | 1,323,768 | 122 | % | 123 | % | ||||||||||
Curtis T. Pohl | $279,922 | 3x | 839,766 | 37,453 | 1,937,818 | 231 | % | 115 | % | ||||||||||
Bobbi L. Schroeppel | $258,068 | 2x | 516,136 | 18,779 | 971,625 | 188 | % | 170 | % |
Satisfaction of Stock Ownership Guidelines | ||||||||||||||||||||||||||||||||||||||
Pay Subject to Multiple ($) | Multiple Required | Stock Ownership Requirement ($) | Number of Shares and DSUs Owned (#) | Value of Shares and DSUs Owned ($) (1) | Percent of Guideline Achieved as of Dec. 31, 2021 (1) | |||||||||||||||||||||||||||||||||
Directors | ||||||||||||||||||||||||||||||||||||||
Anthony T. Clark | 50,000 | 5x | 250,000 | 13,931 | 796,296 | 319 | % | |||||||||||||||||||||||||||||||
Dana J. Dykhouse, Board Chair | 150,000 | 5x | 750,000 | 34,000 | 1,943,440 | 259 | % | |||||||||||||||||||||||||||||||
Jan R. Horsfall | 50,000 | 5x | 250,000 | 4,105 | 234,642 | 94 | % | (2) | ||||||||||||||||||||||||||||||
Britt E. Ide | 50,000 | 5x | 250,000 | 9,521 | 544,220 | 218 | % | |||||||||||||||||||||||||||||||
Linda G. Sullivan, Audit Chair | 50,000 | 5x | 250,000 | 15,347 | 877,235 | 351 | % | |||||||||||||||||||||||||||||||
Mahvash Yazdi, Compensation Chair | 50,000 | 5x | 250,000 | 7,021 | 401,320 | 161 | % | |||||||||||||||||||||||||||||||
Jeffrey W. Yingling, Governance Chair | 50,000 | 5x | 250,000 | 8,458 | 483,459 | 193 | % | |||||||||||||||||||||||||||||||
Executives | ||||||||||||||||||||||||||||||||||||||
Robert C. Rowe | 676,754 | 6x | 4,060,524 | 184,977 | 10,573,285 | 260 | % | |||||||||||||||||||||||||||||||
Brian B. Bird | 500,000 | 5x | 2,500,000 | 104,983 | 6,000,828 | 240 | % | |||||||||||||||||||||||||||||||
Heather H. Grahame | 441,475 | 3x | 1,324,425 | 23,801 | 1,360,465 | 103 | % | |||||||||||||||||||||||||||||||
Crystal D. Lail | 375,000 | 4x | 1,500,000 | 7,949 | 454,365 | 30 | % | |||||||||||||||||||||||||||||||
Curtis T. Pohl | 318,076 | 3x | 954,228 | 19,276 | 1,101,816 | 115 | % | |||||||||||||||||||||||||||||||
Bobbi L. Schroeppel | 301,999 | 2x | 603,998 | 25,434 | 1,453,807 | 241 | % |
Name of Beneficial Owner | Shares of Common Stock Beneficially Owned (#) | Percent of Common Stock (%) | ||||||||||||
BlackRock, Inc. (1) | 8,778,356 | 16.2 | ||||||||||||
55 East 52nd Street, New York, NY 10022 | ||||||||||||||
The Vanguard Group (2) | 5,525,331 | 10.2 | ||||||||||||
100 Vanguard Blvd., Malvern, PA 19355 | ||||||||||||||
American Century Investment Management, Inc. (3) | 3,721,613 | 6.9 | ||||||||||||
4500 Main Street, 9th Floor, Kansas City, MO 64111 | ||||||||||||||
T. Rowe Price Associates, Inc. (4) | 2,833,636 | 5.2 | ||||||||||||
100 E. Pratt Street, Baltimore, MD 21202 |
NorthWestern Energy | Proxy Statement | Page 63 |
Stock |
Name of Beneficial Owner | Shares of Common Stock Beneficially Owned (#) | Percent of Common Stock (%) | ||
BlackRock, Inc. (1) | 8,688,874 | 17.9 | ||
55 East 52nd Street, New York, NY 10022 | ||||
The Vanguard Group (2) | 4,551,759 | 9.4 | ||
100 Vanguard Blvd., Malvern, PA 19355 | ||||
JP Morgan Chase & Co. (3) | 2,478,534 | 5.1 | ||
270 Park Avenue, New York, NY 10017 |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants, and rights (a) | Weighted average exercise price of outstanding options, warrants, and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | ||||||||||||||||||||
Equity compensation plans approved by security holders (1) | 249,842 | (2) | $55.57 | (3) | 828,486 | (4) | |||||||||||||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||||||||||||||
Total | 249,842 | 828,486 |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants, and rights (a) | Weighted average exercise price of outstanding options, warrants, and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | |||||||
Equity compensation plans approved by security holders (1) | 243,008 | (2) | $47.44 | (3) | 822,695 | (4) | ||||
Equity compensation plans not approved by security holders | — | — | — | |||||||
Total | 243,008 | 822,695 |
NorthWestern Energy | Proxy Statement | Page 64 |
: | Voting on the Internet. You may vote by proxy on the internet up until 11:59 p.m. Eastern Daylight Time the day before the annual meeting. The website for internet voting is www.proxyvote.com. Easy-to-follow prompts allow you to vote your shares and confirm that your instructions have been properly recorded. If you vote on the internet, you can request electronic delivery of future proxy materials. | ||||||||||
) | Voting by Telephone. You may vote by proxy by telephone up until 11:59 p.m. Eastern Daylight Time the day before the annual meeting by using the toll-free number listed on your proxy card or voting instruction form. Easy-to-follow prompts allow you to vote your shares and confirm that your instructions have been properly recorded. | ||||||||||
+ | Voting by Mail.Mark, sign and date your proxy card or voting instruction form and return it in the postage-paid envelope provided. Your proxy card or voting instruction form must be received far enough in advance of the annual meeting to allow sufficient time for processing. | ||||||||||
NorthWestern Energy | Proxy Statement | Page 65 |
? | Voting | ||||||||||
r | Revoking Your Proxy or Your Voting Instructions to Your Proxy Holders.If you are a record holder of our common stock, you can change your vote at any time before your proxy is voted at the annual meeting by again voting by one of the methods described above or by attending the annual meeting and voting | ||||||||||
NorthWestern Energy | Proxy Statement | Page 66 |
Annual Meeting Information |
Item of Business | Board Recommendation | Voting Approval Standard | Effect of Abstention | Effect of Broker Non-Vote | ||||||||||
Proposal 1: Election of Directors | FOR election of each director nominee | If a quorum exists, the If a Nominee receives more “WITHHOLD AUTHORITY” votes than “FOR” votes, the Nominee must submit resignation for consideration by the Governance Committee and final Board decision. | No effect | No effect | ||||||||||
Proposal 2: Ratification of Appointment of Independent Registered Public Accounting Firm | FOR | If a quorum exists, the majority of votes present | Vote against | Not applicable; broker may vote shares without instruction | ||||||||||
Proposal 3: Advisory “Say-on-Pay” Vote to Approve Executive Compensation | FOR | If a quorum exists, the majority of votes present This advisory vote is not binding on the Board, but the Board will consider the vote results when making future executive compensation decisions. | Vote against | No effect |
NorthWestern Energy | Proxy Statement | Page 67 |
Annual Meeting Information |
NorthWestern Energy | Proxy Statement | Page 68 |
Travis Meyer Director Corporate Finance and Investor Relations Officer (605) 978-2945 | or | Emily Assistant Corporate Secretary (605) 978-2871 |
NorthWestern Energy | Proxy Statement | Page 69 |
Annual Meeting Information |
AGA | American Gas Association | ||||
Board | Board of Directors of NorthWestern Corporation | ||||
CD&A | Compensation Discussion and Analysis | ||||
CEO | |||||
CFO | |||||
COBRA | Consolidated Omnibus Budget Reconciliation Act | ||||
Code of Conduct | Code of Conduct and Ethics | ||||
Company | NorthWestern Corporation d/b/a NorthWestern Energy | ||||
Compensation Committee | Human Resources Committee | ||||
Deloitte | Deloitte & Touche LLP | ||||
Director Deferred Plan | NorthWestern Corporation 2005 Deferred Compensation Plan for Non-Employee Directors | ||||
Equity Compensation Plan or Plan | NorthWestern Corporation Amended and Restated Equity Compensation Plan (f/k/a NorthWestern Corporation Amended and Restated 2005 Long-Term Incentive Plan) | ||||
EPS | Earnings per share | ||||
ERM | Enterprise Risk Management and Business Continuity Programs | ||||
ERRP | Executive Retention / Retirement Program | ||||
ESG | Environmental, social, and governance | ||||
Exchange Act | Securities and Exchange Act of 1934, as amended | ||||
Executive Officer | The Named Executive Officers and other executives responsible for company policy, strategy and operations. For | ||||
GAAP | Generally accepted accounting principles | ||||
Governance Committee | |||||
Key Employee Severance Plan | NorthWestern Corporation Key Employee Severance Plan, effective Oct. 19, 2016 | ||||
LTIP | Long-Term Incentive Program | ||||
NACD | National Association of Corporate Directors | ||||
Named Executive Officer | |||||
Nasdaq | The Nasdaq Stock Market LLC | ||||
NorthWestern, our, us, or we | NorthWestern Corporation d/b/a NorthWestern Energy | ||||
NYSE | New York Stock Exchange | ||||
Officer Deferred Plan | NorthWestern Corporation 2009 Officer Deferred Compensation Plan | ||||
OSHA | Occupational Safety and Health Administration | ||||
Our | NorthWestern Corporation d/b/a NorthWestern Energy | ||||
PCAOB | Public Company Accounting Oversight Board | ||||
Record Date | February | ||||
ROAE | Return on average equity | ||||
SAIDI | System Average Interruption Duration Index | ||||
SEC | Securities and Exchange Commission | ||||
TSR | Total shareholder return | ||||
NorthWestern Energy | Proxy Statement | Page 70 |
Montana Operational Support Office 11 East Park Street Butte, Montana 59701 (406) 497-1000 | South Dakota / Nebraska Operational Support Office 600 Market Street West Huron, South Dakota 57350 (605) 353-7478 | Corporate Support Office 3010 West 69th Street Sioux Falls, South Dakota 57108 (605) 978-2900 |
Connect With Us: | ||||||||||||||||||||||||||
NorthWestern Energy.com |
NORTHWESTERN CORPORATION 3010 W. 69TH STREET SIOUX FALLS, SD 57108 | VOTE BY INTERNET Before the Meeting - Go to www.proxyvote.com or scan the QR Barcode above Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the You may attend the VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY, 11717. |
TO VOTE, MARK BLOCKS BELOW IN BLUE OR | ||||||||
KEEP THIS PORTION FOR YOUR RECORDS | ||||||||
DETACH AND RETURN THIS PORTION ONLY | ||||||||
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. |
NORTHWESTERN CORPORATION | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS | For All | Withhold All | For All Except | To withold authority to vote for any individual nominee(s), mark “For All Except” and write the number(s) of the nominee(s) on the line below. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Board of Directors recommends that you vote FOR the following nominees: | o | o | o | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vote on Directors 1. Election of Directors Nominees: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01) 02) Dana J. Dykhouse | 04) Britt E. Ide | 05) Linda G. Sullivan 07) Mahvash Yazdi 08) Jeffrey W. Yingling | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vote on Proposals | For | Against | Abstain | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Board of Directors recommends that you vote FOR Proposal 2: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2. Ratification of Deloitte & Touche LLP as the independent registered public accounting firm for | o | o | o | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Board of Directors recommends that you vote FOR Proposal 3: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. Advisory vote to approve named executive officer compensation. | o | o | o | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Board of Directors recommends that you vote FOR Proposal 4: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4. Transaction of any other matters and business as may properly come before the annual meeting or any postponement or adjournment of the annual meeting. | o | o | o | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Please sign exactly as name(s) appear(s) on this Proxy. Joint owners should each sign personally. Corporation Proxies should be signed by an authorized officer. When signing as executors, administrators, trustees, etc., give full title. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Signature [PLEASE SIGN WITHIN BOX] | Date | Signature (Joint Owners) | Date |
If you vote your proxy by Internet or by telephone, you do NOT need to mail back your proxy card. To vote by mail, mark, sign and date your proxy card and return it in the enclosed postage-paid envelope. PLEASE VOTE PROMPTLY BY INTERNET, PHONE OR MAIL. Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: The Notice and Proxy Statement and Annual Report with 10-K Wrap are available at www.proxyvote.com. | ||||||||
NORTHWESTERN CORPORATION 3010 W. 69TH STREET, SIOUX FALLS, SD 57108 PROXY FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON The undersigned hereby appoints THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED BY THE UNDERSIGNED STOCKHOLDER(S). IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED “FOR” THE NOMINEES NAMED IN ITEM 1; “FOR” RATIFICATION OF DELOITTE & TOUCHE LLP AS INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM IN ITEM 2; AND “FOR” THE ADVISORY VOTE TO APPROVE NAMED EXECUTIVE OFFICER COMPENSATION IN ITEM 3. Continued and to be signed on the reverse side |