Compensation: Based on Performance, Metrics

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Duke Energy maintains a performance-based, metrics-driven executive compensation program, designed to:

  • Link pay to performance
  • Attract and retain talented executives and other key employees
  • Emphasize performance-based compensation to motivate executives and other key employees
  • Reward individual performance
  • Encourage long-term commitment to Duke Energy
  • Align executives’ interests with those of stakeholders, including shareholders and customers

The company meets these objectives through a mix of compensation that includes base salary, short-term incentives, and long-term incentives consisting of performance shares and restricted stock units.

The Board of Directors’ Compensation and People Development Committee added a climate-related metric to the short-term incentive plan in 2021, further bolstering the company’s commitment to decarbonization.

To support clean energy initiatives, Duke Energy measures the performance of its nuclear and renewable generation assets through a reliability metric under the company’s short-term incentive (STI) plan.

The Board of Directors’ Compensation and People Development Committee added a climate-related metric to the STI plan in 2021, further bolstering the company’s commitment to decarbonization. The metric focuses on incenting Duke Energy’s leadership team to advance the company’s climate strategy based on relevant criteria specific to each senior executive.

Other key components of the company’s compensation program include:

  • Environmental events metric – to ensure the company’s commitment to the environment, based on the number of reportable environmental events.
  • Customer satisfaction metric – to prioritize the customer experience and customers’ growing demands for cleaner energy, based on a composite of customer satisfaction survey results for each business area.
  • Safety metric – to ensure safety remains the company’s top priority with the goal of an injury-free workplace, based on the total incident case rate of injuries and illnesses among employees.

Duke Energy regularly reviews its compensation program and performance metrics with the Board’s Compensation and People Development Committee, revising as needed.

For more information about Duke Energy’s compensation practices, see the proxy statement for the 2021 Annual Meeting of Shareholders.