8-KLeadership ChangesRegulation FDExhibits & Filings

AMERICAN ELECTRIC POWER CO INC 8-K Report, Executive Changes (Jun 26, 2024)

Filed June 26, 2024For Securities:AEP

Summary

American Electric Power Company, Inc. (AEP) announced significant leadership changes, appointing William J. Fehrman as the new Chief Executive Officer and President, effective August 1, 2024. Mr. Fehrman, who brings extensive experience from roles at Berkshire Hathaway Energy and Centuri Holdings, will also join the Board of Directors and its Executive Committee. This transition marks a key moment for AEP's strategic direction and operational leadership.

Key Highlights

  • 1William J. Fehrman appointed as CEO and President, effective August 1, 2024.
  • 2Mr. Fehrman also elected to the Board of Directors and its Executive Committee.
  • 3Benjamin G. S. Fowke resigns as Interim CEO and President on July 31, 2024, and will serve as Senior Advisor.
  • 4Linda A. Goodspeed will resign from the Board of Directors effective July 31, 2024, for personal reasons.
  • 5Mr. Fehrman's compensation package includes a $1.5 million base salary, short-term and long-term incentive targets, and significant sign-on bonuses and equity awards to offset prior employer forfeitures.
  • 6The Board waived the company's mandatory retirement policy for Mr. Fehrman.

Frequently Asked Questions

William J. Fehrman has been appointed as the new Chief Executive Officer and President of AEP, effective August 1, 2024. He will also join the Board of Directors.

Mr. Fehrman has a strong background in the energy sector, most recently serving as President and CEO of Centuri Holdings, Inc. Prior to that, he held leadership positions at Berkshire Hathaway Energy Company (BHE), including President, CEO, and director from 2018 to 2023, and President and CEO of MidAmerican Energy Company.

Benjamin G. S. Fowke will resign as Interim CEO and President effective July 31, 2024. He will transition to a role as Senior Advisor to the Company for a transition period determined by the Board, and will continue to serve as a director.

Mr. Fehrman's compensation includes an annual base salary of $1,500,000, a short-term incentive target of 155% of his base salary, and a $10,500,000 annual long-term incentive target starting in 2025. He will also receive significant one-time payments and equity awards totaling $7.5 million to offset forfeitures from his prior employer, along with a March 2025 payment to replace lost short-term incentive compensation.