FirstEnergy Holds 2024 Annual Meeting

Rhea-AI Summary

FirstEnergy held its 2024 Annual Meeting on May 22, 2024. CEO Brian X. Tierney emphasized the company's progress and resilience, highlighting their $26 billion grid modernization plan, Energize365. The company aims to become a premier electric company by focusing on investing, operating, recovering costs, and financing. Notable achievements include improvements to their balance sheet, increased dividends, and upgrades to investment-grade credit ratings. Preliminary voting results showed the reelection of 10 directors and the ratification of PricewaterhouseCoopers LLP as the independent auditor for 2024. However, three shareholder proposals related to climate metrics and compensation policies were not approved.

Positive

• Strong foundation and robust strategy aimed at long-term value.
• Execution of a $26 billion grid modernization plan, Energize365.
• Improvements to the company's balance sheet.
• Recent increases in dividend payments.
• Upgrades to investment-grade credit ratings by major agencies.
• Reelection of 10 directors, ensuring continuity in leadership.
• Ratification of PricewaterhouseCoopers LLP as independent auditor for 2024.

Negative

• Shareholders did not approve three proposals related to integrating climate metrics with compensation plans and changes to the company's compensation recoupment policy.
• Uncertainty around the final certification of voting results.

President and CEO Brian X. Tierney highlights company's progress and strong position in shareholder address;

Company announces preliminary voting results 

AKRON, Ohio, May 22, 2024 /PRNewswire/ -- Speaking at the company's 2024 Annual Meeting of Shareholders, FirstEnergy Corp. (NYSE: FE) President and Chief Executive Officer Brian X. Tierney said FirstEnergy has become a stronger and more resilient company with a foundation of integrity and a very bright future.

"We have a strong foundation, clear focus and robust strategy to deliver long-term value to our shareholders, customers, communities and employees," he said.

Tierney said FirstEnergy is building on its progress with the goal of becoming one of the nation's premier electric companies. To realize that goal, the company is executing on a business model encompassing four components: investing, operating, recovering costs and financing.

"This business model creates a Virtuous Cycle that will help improve reliability, grow rate base, engage employees, improve returns and maintain a strong balance sheet," he said.

Tierney discussed the interconnection between each component of the cycle and the company's recent progress in each of these areas, including its customer-focused, $26 billion grid modernization plan, Energize365. He also highlighted a new operating structure that better supports execution at the local level, where it can make a positive difference for customers, recent regulatory milestones and significant improvements to the company's balance sheet that support growth, enabled recent increases in dividend payments for investors and led to upgrades to investment-grade credit ratings by the major rating agencies.

"Our goal is to continue impacting each phase of the cycle in a positive way to build on our momentum and benefit all of our stakeholders," Tierney said. "Together with our unwavering commitment to ethics and integrity, performance excellence and continuous improvement, we are confident that strong execution of the virtuous business cycle model will help us achieve our strategic objectives and deliver value."

Tierney said FirstEnergy's commitment to responsible business, grounded in strong governance, is at the heart of its business model and woven through each step of the Virtuous Cycle.

"We're committed to supporting our customers and employees and demonstrating stewardship of the environment and our communities," he said. "Responsible business is good business that helps us refine and execute our strategies, and it's a hallmark of excellent companies."

Tierney's presentation and remarks are available in the Newsroom on firstenergycorp.com. 

Preliminary Voting Results

FirstEnergy also announced preliminary voting results from its 2024 Annual Meeting. Shareholders reelected 10 directors to new one-year terms on the company's Board and ratified the appointment of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for 2024. Shareholders approved, on an advisory basis, named executive officer compensation.

Preliminary results indicate shareholders did not approve three shareholder proposals, which sought a report integrating climate metrics to compensation plans, changes to the company's compensation recoupment policy and a report related to the costs of the company's climate strategy.

All preliminary voting results are subject to final certification and will be filed with the Securities and Exchange Commission on a Form 8-K.

The following directors were elected to one-year terms:

• Heidi L. Boyd, Senior Managing Director, Blackstone Inc.
• Jana T. Croom, Chief Financial Officer, Kimball Electronics, Inc.
• Steven J. Demetriou, Executive Chair of the Board of Directors of Jacobs Solutions Inc.
• Lisa Winston Hicks, Lead Independent Director of the Board and retired Board Chair of MV Transportation, Inc.
• Paul Kaleta, retired Executive Vice President, General Counsel, Federal Affairs, Chief Compliance Officer and Corporate Secretary at First Solar, Inc.; Managing Director of SERC Consulting LLC
• James F. O'Neil III, former Chief Executive Officer and Vice Chairman of Orbital Infrastructure Group
• John W. Somerhalder, II, Non-Executive Board Chair of FirstEnergy; former Interim President and Chief Executive Officer of Center Point Energy, Inc.
• Brian X. Tierney, President and Chief Executive Officer of FirstEnergy
• Leslie M. Turner, retired Senior Vice President, General Counsel and Corporate Secretary of The Hershey Company
• Melvin Williams, retired President of Nicor Gas and Senior Vice President of Southern Company Gas

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving more than 6 million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at www.firstenergycorp.com and on X, formerly known as Twitter, @FirstEnergyCorp.

 Forward-Looking Statements: This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Such statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-looking statements. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms "anticipate," "potential," "expect," "forecast," "target," "will," "intend," "believe," "project," "estimate," "plan" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, which may include the following: the potential liabilities, increased costs and unanticipated developments resulting from government investigations and agreements, including those associated with compliance with or failure to comply with the Deferred Prosecution Agreement entered into July 21, 2021 with the U.S. Attorney's Office for the Southern District of Ohio; the risks and uncertainties associated with government investigations and audits regarding Ohio House Bill 6, as passed by Ohio's 133rd General Assembly ("HB 6") and related matters, including potential adverse impacts on federal or state regulatory matters, including, but not limited to, matters relating to rates; the risks and uncertainties associated with litigation, arbitration, mediation, and similar proceedings, particularly regarding HB 6 related matters, including risks associated with obtaining dismissal of the derivative shareholder lawsuits; changes in national and regional economic conditions, including recession, volatile interest rates, inflationary pressure, supply chain disruptions, higher fuel costs, and workforce impacts, affecting us and/or our customers and those vendors with which we do business; variations in weather, such as mild seasonal weather variations and severe weather conditions (including events caused, or exacerbated by climate changes, such as wildfires, hurricanes, flooding, droughts, high wind events and extreme heat events) and other natural disasters affecting future operating results and associated regulatory actions or outcomes in response to such conditions; legislative and regulatory developments, including, but not limited to, matters related to rates, compliance and enforcement activity, cyber security, and climate change; the risks associated with physical attacks, such as acts of war, terrorism, sabotage or other acts of violence, and cyber-attacks and other disruptions to our, or our vendors', information technology system, which may compromise our operations, and data security breaches of sensitive data, intellectual property and proprietary or personally identifiable information; the ability to meet our goals relating to employee, environmental, social and corporate governance opportunities, improvements, and efficiencies, including our greenhouse gas ("GHG") reduction goals; the ability to accomplish or realize anticipated benefits through establishing a culture of continuous improvement and our other strategic and financial goals, including, but not limited to, overcoming current uncertainties and challenges associated with the ongoing government investigations, executing Energize365, our transmission and distribution investment plan, executing on our rate filing strategy, controlling costs, improving credit metrics, maintaining investment grade ratings, and growing earnings, changing market conditions affecting the measurement of certain liabilities and the value of assets held in our pension trusts may negatively impact our forecasted growth rate, results of operations, and may also cause us to make contributions to our pension sooner or in amounts that are larger than currently anticipated; mitigating exposure for remedial activities associated with retired and formerly owned electric generation assets; changes to environmental laws and regulations, including but not limited to those related to climate change; changes in customers' demand for power, including but not limited to, economic conditions, the impact of climate change, emerging technology, particularly with respect to electrification, energy storage and distributed sources of generation;  the ability to access the public securities and other capital and credit markets in accordance with our financial plans, the cost of such capital and overall condition of the capital and credit markets affecting us, including the increasing number of financial institutions evaluating the impact of climate change on their investment decisions; future actions taken by credit rating agencies that could negatively affect either our access to or terms of financing or our financial condition and liquidity; changes in assumptions regarding factors such as economic conditions within our territories, the reliability of our transmission and distribution system, or the availability of capital or other resources supporting identified transmission and distribution investment opportunities; the potential of non-compliance with debt covenants in our credit facilities; the ability to comply with applicable reliability standards and energy efficiency and peak demand reduction mandates; human capital management challenges, including among other things, attracting and retaining appropriately trained and qualified employees and labor disruptions by our unionized workforce; changes to significant accounting policies; any changes in tax laws or regulations, including, but not limited to, the Inflation Reduction Act of 2022, or adverse tax audit results or rulings; and the risks and other factors discussed from time to time in our Securities and Exchange Commission ("SEC") filings. Dividends declared from time to time on FirstEnergy Corp.'s common stock during any period may in the aggregate vary from prior periods due to circumstances considered by FirstEnergy Corp.'s Board of Directors at the time of the actual declarations. A security rating is not a recommendation to buy or hold securities and is subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating.  These forward-looking statements are also qualified by, and should be read together with, the risk factors included in FirstEnergy Corp.'s (a) Item 1A. Risk Factors, (b) Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, and (c) other factors discussed herein and in FirstEnergy's other filings with the SEC. The foregoing review of factors also should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy Corp.'s business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy Corp. expressly disclaims any obligation to update or revise, except as required by law, any forward-looking statements contained herein or in the information incorporated by reference as a result of new information, future events or otherwise.

     

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SOURCE FirstEnergy Corp.

FAQ

What did FirstEnergy announce at its 2024 Annual Meeting?

FirstEnergy highlighted its progress, including a $26 billion grid modernization plan and improvements in its balance sheet, along with preliminary voting results.

What is the goal of FirstEnergy's Energize365 plan?

The Energize365 plan aims to modernize the grid with a $26 billion investment to enhance reliability and support growth.

How did FirstEnergy's stock get impacted by the 2024 Annual Meeting?

The company's improvements, such as increased dividends and credit rating upgrades, are likely seen as positive by investors.

What were the preliminary voting results at FirstEnergy's 2024 Annual Meeting?

Shareholders reelected 10 directors, ratified PricewaterhouseCoopers LLP as independent auditor, but did not approve three shareholder proposals related to climate metrics and compensation policies.

What are the key components of FirstEnergy's business model?

FirstEnergy's business model includes investing, operating, recovering costs, and financing, which form a Virtuous Cycle aimed at improving reliability and returns.