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John Sznewajs

Director at CONSUMERS ENERGY
Board

About John G. Sznewajs

John G. Sznewajs is an independent director of CMS-PB, age 57, serving since 2015, with nine years of board tenure as of May 2025 . He is currently a Partner at Shore Capital’s Industrial Platform (2023–present) and previously served as Vice President and Chief Financial Officer at Masco Corporation (2007–2023) . He is designated an Audit Committee Financial Expert and brings deep finance, corporate development, and prior oversight of information technology and enterprise-wide strategy .

Past Roles

OrganizationRoleTenureCommittees/Impact
Masco CorporationVice President & CFO2007–2023Prior Masco Treasurer; extensive finance leadership and IT oversight
Masco CorporationTreasurerPrior roleFinancial stewardship background

External Roles

OrganizationRoleTenureNotes
Shore Capital – Industrial PlatformPartner2023–presentPrivate equity partner, industrial focus
Detroit Zoological SocietyDirector & TreasurerNot disclosedNon-profit board role
Teach for America – DetroitBoard MemberNot disclosedEducation non-profit engagement
Public Company Boards (last 5 years)NoneN/ANo current public company directorships

Board Governance

  • Independence: Confirmed independent director under NYSE standards and CMS’s stricter Independence Standards; Audit and Compensation Committees composed entirely of independent directors .
  • Committee assignments and chair roles (CMS and Consumers have the same Directors and Committees):
    • Audit Committee: Chair; 7 meetings in 2024; all members financially literate and Audit Committee Financial Experts; responsibilities include financial reporting integrity, auditor oversight, legal/regulatory compliance, risk (including cyber), and internal audit performance .
    • Finance Committee: Member; 3 meetings in 2024; responsibilities include financing plans, capital structure/dividends, financial policies, capital projects oversight .
    • Executive Committee: Member; 0 meetings in 2024 .
  • Attendance and engagement: Boards met eight times in 2024; all Directors attended more than 75% of Board and assigned Committee meetings and attended the 2024 annual meeting; independent Directors held four executive sessions, presided by Chairman Russell .
  • Combined boards: CMS and Consumers maintain the same individuals on each Board and each Board Committee; compensation arrangements and auditing relationships are coordinated .

Fixed Compensation

YearFees Earned or Paid in Cash ($)Roles Driving Cash FeesTotal Cash Notes
2024140,417Annual cash retainer plus Committee role fees (Audit Chair) Includes prorated payments by months served
Cash Fee Schedule2024 ($)2025 ($)
Annual Cash Retainer (non-employee directors)115,000 115,000
Chair of the Audit Committee22,500 25,000
Other Members of the Audit Committee5,000 10,000
Chairs of Finance and Governance Committees20,000 20,000
Presiding Director30,000 35,000
Chairman of the Board175,000 175,000

Additional cash deferral: Sznewajs elected to defer receipt of his 2024 director fees under the Directors’ Deferred Compensation Plan (DCP), administered by Fidelity Investments .

Performance Compensation

Component2024 Value ($)StructureVestingDeferral Elections
Annual Equity Award (Restricted Stock)175,000 Tenure-based (no performance metrics) 100% at next annual meeting date 2024 equity grant deferred; granted as RSUs
RSU/Restricted Stock Status (as of 12/31/2024)Shares
Outstanding Restricted Stock Units (RSUs)27,926
Unvested Restricted Stock0

Equity award trend: 2023 director equity award was $160,000 (tenure-based); increased to $175,000 in 2024; 2025 award expected at ~$175,000, tenure-based, vesting at the next annual meeting .

Performance metrics table (Director awards)

Metric TypeApplies to Director Equity?Notes
Relative TSRNoDirector equity is tenure-based only
LTI EPS GrowthNoDirector equity is tenure-based only
ESG/Operational GoalsNoNot disclosed for directors; tenure-based grants

Other Directorships & Interlocks

CategoryDetail
Public Company Boards (last 5 years)None
Interlocks/Shared DirectorshipsCMS and Consumers share same individuals on Boards/Committees; no competitive interlocks disclosed
Related party transactionsAudit Committee pre-approval policy and rigorous review; no director-related party transactions disclosed for Sznewajs

Expertise & Qualifications

  • Finance and Accounting; enterprise strategy; prior IT oversight; designated Audit Committee Financial Expert .
  • Corporate development experience spanning 25+ years .
  • Board skills matrix shows competencies in executive leadership and finance/accounting; risk oversight embedded in Audit responsibilities including cybersecurity .

Equity Ownership

ItemAmountNotes
Beneficially Owned Shares (CMS) as of 03/04/202531,748
RSUs Outstanding (12/31/2024)27,926
Pledged SharesNone; hedging/pledging prohibited for directors/officers
Ownership as % of CMS Outstanding<0.5% (individual directors each <0.5%)
Director Stock Ownership Guideline5x annual cash retainer; compliance required by end of 5th calendar year
Compliance StatusAll Directors comply or are expected to comply by deadline

Governance Assessment

  • Strengths

    • Audit Chair role and Audit Committee Financial Expert designation signal high board effectiveness in financial oversight; responsibilities explicitly cover cyber risk and compliance .
    • Documented independence under NYSE and CMS’s stricter standards; Audit and Finance Committees are fully independent .
    • Attendance and engagement: Boards met eight times; all Directors exceeded 75% attendance and attended the annual meeting; independent directors held regular executive sessions .
    • Alignment: Tenure-based equity grants with deferral into RSUs; stock ownership guidelines at 5x retainer; hedging/pledging prohibited; beneficial ownership disclosed (31,748 shares) .
    • Investor support: CMS say-on-pay approval ~95% in 2024, indicating strong shareholder confidence (context for overall governance environment) .
    • Controls on conflicts: Related party transactions require Audit Committee pre-approval with specific factors assessed; no waivers to Codes of Ethics; no such waivers or exceptions granted .
  • Watch items

    • Private equity affiliation (Shore Capital) warrants ongoing monitoring for potential related-party transactions with portfolio companies; CMS’s policy provides structured pre-approval and conflict review, and no director-related transactions are disclosed for Sznewajs .
    • Director equity is tenure-based (not performance-based); while common for utilities, investors may prefer performance-conditioned director equity—CMS balances this with stringent ownership guidelines and deferral options .

Director Compensation Summary (2024)

ComponentAmount ($)
Fees Earned or Paid in Cash140,417
Stock Awards (Grant Date Fair Value)175,000
Other Compensation
Total315,417

Committee Assignments Snapshot (2024 activity)

CommitteeRoleMeetings (CMS/Consumers)Key Oversight Areas
AuditChair7 / 7 Financial reporting, auditor independence/performance, legal/regulatory compliance, risk incl. cyber, internal audit
FinanceMember3 / 3 Financing plans, capital structure/dividends, financial policies, capital project oversight
ExecutiveMember0 / 0 Acts between board meetings as necessary

Related Party Transactions & Policies

  • Any related party transaction >$10,000 with a material interest must be reported and pre-approved by the Audit Committee; approvals consider market terms, size, nature of interest, and conflict risk .
  • No director-specific related party transactions disclosed for Sznewajs; policy prohibits director/officer hedging and pledging of company securities .
  • No waivers or exceptions to the Directors’ Code disclosed .

Say‑on‑Pay & Shareholder Feedback

  • CMS shareholders’ advisory vote to approve executive compensation received ~95% of votes cast in favor (2024), supporting governance practices; program maintained with monitoring of best practices and institutional engagement .

Conclusion

Sznewajs’s chairmanship of the Audit Committee, independent status, strong attendance, and equity/deferral alignment support investor confidence. Governance policies around conflicts, hedging/pledging prohibitions, and high say‑on‑pay approval further mitigate governance risk; ongoing monitoring of private equity affiliations remains prudent under CMS’s robust related‑party framework .