Dominion Energy (Dominion Energy Resources, Inc.) | Consider Eliminating Non-Carbon Emitting Generation Goals in Executive Pay Incentives at Dominion Energy

Status
Filed
AGM date
Previous AGM date
Proposal number
4
Resolution details
Company ticker
NYSE: D
Resolution ask
Adopt or amend a policy
ESG theme
  • Environment
  • Governance
ESG sub-theme
  • GHG targets / emissions
  • Remuneration or pay
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Utilities
Company HQ country
United States
Resolved clause
Resolved: Shareholders request the Board of Directors’ Compensation and Talent Development Committee to revisit its incentive guidelines for executive pay, to re-emphasize fiduciary goals and consider eliminating NCGC-based incentives from compensation inducements.

Whereas clause
Whereas: A government-driven, media-amplified “scientific consensus”1 2 narrative claims anthropogenically-caused climate change will result in catastrophic impacts to the planet. Research shows these scenarios are unlikely, and that harmful consequences from carbon dioxide emissions have been exaggerated.3 For example:


Corporations’ climate policies are often guided by the Paris Agreement,4 which is heavily informed by the Intergovernmental Panel on Climate Change.5 These targets are voluntary, and the United States is expected to remove itself from the agreement’s terms due to inequitable application across national economies.6

The IPCC’s most extreme hypotheticals assume a return to unrestricted fossil fuel usage and heavy reliance on coal power7 — an unlikely scenario.8

Regarding catastrophic forecasts that are treated as the expectation: “... the media then often amplifies this message... This results in further confusion regarding probable emissions outcomes, because many climate researchers are not familiar with the details of these scenarios in the energy-modeling literature.”9

Apocalyptic predictions have been repeatedly proven false.10 Climate models used to predict future conditions “may be overly sensitive to carbon dioxide increases and therefore project future warming that is unrealistically high.”11

Carbon dioxide as a primary “forcing” for planetary warming (or “climate change”) is a myth, as most recently demonstrated by - for example - “no change in the warming rate beyond the 1970s,”12 and research showing that doubling of CO2 cools polar (Arctic and Antarctic) regions, and that water vapor dampens the warming effect of increased CO2, contrary to IPCC claims.13
Supporting statement
Supporting Statement: Despite evidence that climate alarmism and associated renewable energy policies are unwarranted, Dominion Energy, Inc.’s executive pay program incorporates unnecessary incentives to attain “non-carbon emitting generation capacity” goals (NCGC):”14

Under the Company’s 2023 60% performance grant in its long-term incentive program, named executive officers received performance grants that included a “10% weighting” for NCGC.

The NCGC performance metric “measures the company’s wind, solar, nuclear and conventional hydro generation capacity as a percentage of its total generation capacity.”
The NCGC performance metric is used “to ensure officers remain focused on the Company’s long-term environmental goals...which are expected to enhance long-term shareholder value.”

Power generation incentives based on specific sources are unscientific and are a breach of fiduciary duty. The Company is a public utility and is morally and legally obligated to deliver the lowest-cost electricity to ratepayers — within the guardrails of local, state and federal laws — and must focus on cost-effective and efficient power generation. Replacing or rejecting longstanding dependable sources15 to reach quotas for sources such as wind or solar are uneconomical16 17 and environmentally problematic.18 19 Customers and investors should not pay the price for incentivizing poor executive decisions.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.