Colin B. Anderson
ALLETEAbout Colin B. Anderson
Colin B. Anderson is Vice President, Chief Accounting Officer, and Controller of ALLETE, serving as the company’s principal accounting officer since April 16, 2025; he is 49 and joined ALLETE in October 2021 after serving as CFO of Loll Designs (2018–2021) . He signs the company’s SEC reports in his capacity as principal accounting officer, evidencing direct accountability for financial reporting and internal controls . Company performance context during his ALLETE tenure includes a 3-year (2022–2024) TSR of 11.6%, ranking at the 46th percentile vs. EEI utilities peers, and FY2024 revenue/EBITDA trends shown below .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| ALLETE, Inc. | Vice President, Chief Accounting Officer, and Controller (Principal Accounting Officer) | Apr 2025 – Present | Serves as principal accounting officer; signs periodic reports (10-Q) |
| ALLETE, Inc. | Controller and Vice President – ALLETE Tax and Rates | Oct 2024 – Apr 2025 | Led controllership and tax/rate functions |
| ALLETE, Inc. | Controller | Oct 2021 – Oct 2024 | Corporate controller responsibilities |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Loll Designs | Chief Financial Officer | Apr 2018 – Oct 2021 | Finance leadership at a manufacturer of outdoor furniture |
Fixed Compensation
| Component | Detail |
|---|---|
| Base salary | $311,725 per year, effective Apr 16, 2025 |
| Annual Incentive Plan (AIP) target | 45% of base salary (effective Apr 16, 2025) |
Performance Compensation
- Long-Term Incentive Plan (LTIP) 2025 grant: total $125,000 (effective Jan 1, 2025), allocated 33% RSUs and 67% PSAs (at target) .
- Vesting and metrics:
- RSUs: time-based; vest in full three years from date of grant .
- PSAs: performance-based; vest, if at all, on December 31, 2027, subject to achievement of plan metrics and continued service .
- Company LTIP metrics: performance share awards are tied to relative TSR vs. EEI Stock Index peers and EPS CAGR, with threshold/target/superior levels and straight-line interpolation, per plan design .
Detailed plan structure and metrics (company-wide context):
| Metric | Weighting | Target definition | Payout mechanics | Latest disclosed result context |
|---|---|---|---|---|
| Relative TSR (EEI peer group) | 37.5% of LTIP (half of PSAs) | Target at 50th percentile; threshold 30th; superior 85th | 0–200% with interpolation; dividend equivalents only if earned | 2022–2024 TSR 11.6%, 46th percentile; 89.9% payout for that tranche |
| EPS CAGR | 37.5% of LTIP (half of PSAs) | Threshold 4%, target 6%, superior 8% (period-specific baselines) | 0–200% with interpolation; dividend equivalents only if earned | 2022–2024 EPS CAGR 3% → no payout for that tranche |
| RSUs (time-based) | 25% of LTIP | Fixed 3-year vest | Delivers shares at vest; dividend equivalents accrue and pay only if vest | 2025 grant vests after 3 years |
Equity Ownership & Alignment
- Stock ownership and hedging policies:
- Pledging, hedging, short sales, and holding company stock in margin accounts are prohibited for officers (including principal accounting officer) .
- Executive stock ownership guidelines exist; examples disclosed: CEO 5x salary; CFO 3x salary; other NEOs 1x salary; RSUs count toward guidelines until met (PSAs do not count until earned) .
- Beneficial ownership:
- The 2025 proxy provides detailed ownership for Directors and NEOs; Colin Anderson was not an NEO as of FY2024 and is not tabulated there .
Employment Terms
- Appointment and tenure:
- Appointed VP, Chief Accounting Officer, and Controller effective April 16, 2025; with ALLETE since October 2021 .
- Compensation programs eligibility:
- Eligible for AIP, LTIP (mix and vesting as above), retirement/savings plans (RSOP and SERP eligibility as applicable to executive officers), and limited perquisites, as described in the 2025 proxy’s CD&A .
- Change-in-control (CIC) economics:
- Participant in ALLETE’s CIC Severance Plan; eligible for a lump-sum severance equal to 2x annual cash compensation upon a qualifying termination in connection with a CIC (double-trigger framework) .
- No excise tax gross-ups; modified 280G safe harbor reduction applies if it yields a better after-tax outcome .
- AIP and LTIP CIC treatment includes prorated AIP based on actual through CIC; RSUs vest per plan (subject to assumption rules); PSAs pay prorated at greater of target or then-current achievement; awards granted post-merger agreement convert to time-vesting cash at target .
- CIC Severance Plan imposes restrictive covenants (non-compete/non-solicit, confidentiality, non-disparagement); period differs by role, with 1.5 years for CEO/CFO and one year for other NEOs; general participant restrictions apply as a condition of severance .
- Clawback policy:
- Executive Compensation Recovery Policy effective Dec 1, 2023 (Dodd-Frank/NYSE-compliant) plus a discretionary recovery policy for specified misconduct .
Performance & Track Record
Company-level trend context during Anderson’s tenure.
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|
| Revenues (USD) | $1,419,200,000* | $1,570,700,000* | $1,879,800,000* | $1,529,800,000* |
| EBITDA (USD) | $387,500,000* | $386,700,000* | $443,400,000* | $446,900,000* |
Values retrieved from S&P Global.*
Additional context:
- 3-year TSR (2022–2024): 11.6%, 46th percentile vs EEI peers; resulting 89.9% payout on TSR-linked PSAs for that period .
- AIP scorecard design and outcomes (company-wide): heavy weighting to net income (50%) and cash from operations (20%), with strategic (18%), operational (6%), and safety (6%); FY2024 payout for ALLETE corporate goals was 153.2% of target (mix by metric shown in proxy) .
Compensation Peer Group (benchmarking context)
- ALLETE benchmarks pay to a peer set (subset of EEI Stock Index), size-adjusted by revenue/market cap; 2024 peer group includes: Alliant Energy, Avista, Black Hills, Hawaiian Electric Industries, IDACORP, MGE Energy, MDU Resources, NiSource, NorthWestern, OGE Energy, Otter Tail, Pinnacle West, PNM Resources, Portland General Electric, Unitil .
Say-on-Pay & Shareholder Feedback
- 2024 say‑on‑pay approval: more than 94.5% of votes cast supported NEO compensation; committee retained program design broadly consistent with prior year .
Risk Indicators & Red Flags
- Hedging/pledging/short sales prohibited for officers; preclearance and trading-window controls in insider trading policy .
- No tax gross-ups other than broad-based relocation policy; repricing of options not permitted (and company does not currently grant options) .
- Clawback policies in place (mandatory and discretionary) .
- Related party transaction oversight; no disclosures indicating issues related to Anderson .
- Merger-related litigation disclosed at the company level; considered without merit by the company; not specific to Anderson .
Investment Implications
- Alignment: Anderson’s pay mix shifts toward at-risk equity (PSAs/RSUs) with prohibitions on pledging/hedging and ownership guidelines, supporting alignment with long-term shareholder value and limiting near-term selling pressure given multi-year vesting and clawbacks .
- Retention/CIC risk: Participation in double‑trigger CIC plan (2x cash compensation) with restrictive covenants provides retention through a pending transaction while capping severance without excise tax gross‑ups—moderate shareholder‑friendly posture .
- Execution backdrop: Company 3-year TSR just below median and mixed incentive outcomes (TSR PSAs below target; EPS PSAs at zero for 2022–2024) indicate disciplined hurdles; FY2024 AIP paid above target on adjusted net income and cash flow, suggesting robust operating focus in a transitional year .
- Governance: Strong controls environment signaled by principal accounting officer sign-off on periodic reports and comprehensive committee oversight; low governance red flags detected specific to Anderson .