Retired Xcel CEO Ben Fowke earned $22.3M in his last year

Benjamin Fowke

Former chairman and CEO

Xcel Energy Inc.

Note: Ben Fowke was named CEO of Xcel Energy on Aug. 24, 2011, and led the Minneapolis-based utility company for 10 years. He retired as president and CEO on Aug. 18 and as executive chairman at the end of the year.

Fowke's compensation for his last year of $22.3 million was up 2% from 2020. It was the fourth year his compensation exceeded $20 million.

Bob Frenzel was promoted from president and chief operating officer to succeed Fowke. He made $6.2 million last year, including $4.2 million worth of restricted stock that vested during the year. The board also granted him new stock awards that were valued at $6.3 million.

During Fowke's tenure as CEO, he set ambitious goals for Xcel Energy to become a leader in renewable energy production and to reduce its carbon emissions. He announced in December 2018 that Xcel Energy would deliver 100% carbon-free electricity to its customers by 2050.

Xcel Energy also saw its net income increase every year but one under Fowke, and the stock had a 300% total return. The S&P Utilities Index had a 196% return over the same period.

Much of Fowke's compensation came from restricted stock awards based on total shareholder return and carbon dioxide emission reductions over three-year periods. For the 2019 to 2021 period, Xcel exceeded the targets for each measure, paying out at 189% of target for the shareholder return measure and 173% of target for the carbon reduction goal.

Xcel's annual cash incentive pay is based on earnings and operational goals that include metrics for grid stability, public and employee safety. A diversity, equity and inclusion goal was added in 2021. Annual incentive performance finished above the overall targets but payouts were reduced because of a workplace fatality in 2021.

The CEO pay ratio is based on the total in the annual proxy's summary compensation table which counts the grant date value of stock awards. Because Xcel had two CEOs during 2021, under SEC rules Xcel combined the total annual compensation paid to Fowke during his months in the position and added it to Frenzel's during his tenure. That total was $11,644,548.