New Greenhouse Gas Reduction Goal Established for CEO’s 2019 Compensation
April 27, 2019
Southern Company has been a leader among common peers to reduce greenhouse gas (GHG) emissions from all operations. The company’s long-term energy strategy includes the continued development of a diverse portfolio of energy resources to reliably and affordably serve customers and communities with a focus on reducing GHG emissions, including a 2030 goal of reducing carbon emissions by 50% as compared to 2007 and a goal of low- to no-carbon emissions by 2050.
To demonstrate the company’s commitment to the GHG reduction goals, Southern Company’s Board of Directors added a new metric to the CEO’s 2019 pay. A meaningful portion of the CEO’s 2019 incentive award is now aligned with the GHG reduction goals.
“This goal reflects our commitment to achieving our low- to no-carbon goals.”
The Board has long established strong alignment between CEO pay and performance based on three factors:
- The majority of the CEO’s total compensation is at risk
- The appropriate metrics are in place to align pay with long-term value creation for stockholders
- Actively review earnings adjustments to ensure pay outcome is consistent with stockholder interests
For more than a decade, Southern Company has performed extremely well in the area of reducing GHG by shifting away from reliance on coal and increasing generation from renewables and natural gas. Since 2007, the percentage of energy generated from coal has decreased approximately 61%.