Matthew Paul
DTE ENERGYAbout Matthew Paul
Matthew T. Paul is President and Chief Operating Officer of DTE Electric, serving 2.3 million customers; he has more than 20 years at DTE across distribution operations, electric generation, and non-utility businesses. He holds a B.S. in Mechanical Engineering from Michigan State University and an MBA from the University of Chicago; age 55 as of March 13, 2025, and in his current role since July 3, 2023 . Company performance context during his tenure includes 2024 operating EPS of $6.83 and cash from operations of $3.64B, with five-year TSR of 129% versus 2019 base, underpinning incentive plans tied to EPS, cash flow, customer satisfaction, safety, and operating excellence .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| DTE Gas | President & COO | 2019–2023 | Led the gas utility; DTE announced Paul’s promotion in Mar-2019; responsibility for methane reduction efforts and reliability across 1.3M customers |
| DTE Electric | Executive Vice President, Distribution Operations | Not disclosed | Senior leadership of distribution operations; part of multi-decade DTE career |
| DTE Electric (Generation) | Vice President, Plant Operations | ≤2019 | Led power plant operations and development of Blue Water Energy Center (key carbon reduction project) |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Michigan Manufacturing Association | Board Member | Not disclosed | External industry engagement |
| Autism Alliance of Michigan | Board Member | Not disclosed | Community leadership |
Fixed Compensation
- Matthew Paul is an executive officer but not a Named Executive Officer (NEO); therefore, his individual base salary and cash bonus amounts are not disclosed in the Summary Compensation Table. DTE targets median base salaries versus peer group, adjusted for role scope and company size .
- Annual bonus targets for executive officers are set as a percentage of base salary; 2024 NEO target range 70%–135%, 2025 range 75%–145%, with payout from 0%–200% based on AIP performance results .
Performance Compensation
Annual Incentive Plan (AIP) – Measures and 2024 Results (Executive Officers of DTE Energy)
| Metric | Weight | Threshold | Target | Maximum | Actual Result | Payout % | Weighted Payout |
|---|---|---|---|---|---|---|---|
| Adjusted Operating EPS | 20% | $6.54 | $6.69 | $6.83 | $6.83 | 200.0% | 40.00% |
| Cash from Operations ($mm) | 20% | $2,975 | $3,306 | $3,637 | $3,650 | 200.0% | 40.00% |
| Net Promoter Score | 15% | 27 | 33 | 39 | 31 | 75.0% | 11.25% |
| OSHA Recordable Incident Rate | 5% | 0.68 | 0.55 | 0.42 | 0.70 | 0.0% | 0.00% |
| High Energy SIF | 5% | 4 | 2 | 0 | 2 | 100.0% | 5.00% |
| Employee Engagement (Gallup) | 5% | 4.17 | 4.29 | 4.44 | 4.35 | 140.0% | 7.00% |
| Storm Customers Restored ≤48hrs | 10% | 88% | 93% | 98% | 95% | 140.0% | 14.00% |
| CEMI4 % of Customers | 5% | 11.1% | 9.3% | 7.5% | 7.8% | 182.8% | 9.14% |
| Nuclear Unit Capability Factor | 10% | 86.4% | 88.0% | 88.7% | 82.6% | 0.0% | 0.00% |
| % HCA Miles Assessable by ILI | 5% | 96.76% | 96.85% | 96.89% | 96.92% | 200.0% | 10.00% |
| Total | 100% | — | — | — | — | — | 136.39% |
AIP framework:
- 2024 and 2025 measures and weights for DTE Energy executive officers are identical across EPS, cash from operations, customer satisfaction, safety/engagement, and a Utility Operating Excellence Index; 2024 targets range 70%–135% of salary and 2025 targets 75%–145%, payouts 0%–200% .
- Vantage executives have tailored AIP baskets; not applicable to Paul’s DTE Electric role .
Long-Term Incentive Plan (LTIP) – Design and Metrics
| LTIP Element | 2024 Grant Design | Measurement Period | Payout Range | Metrics and Weighting |
|---|---|---|---|---|
| Performance Shares (PSUs) | ~70% of LTIP value | Jan 1, 2024 – Dec 31, 2026 | 0%–200% of target | TSR vs peer group (80%), 3-year cumulative operating EPS (20%) |
| Restricted Stock (RSUs) | ~30% of LTIP value | Time-based vest | n/a | Vests on Jan 31, 2027, continued employment required; dividends paid during vesting |
Additional LTIP governance:
- No stock options granted since 2010; minimum one-year vesting for equity awards; typical three-year vesting; no repricing of underwater options .
- 2024 payout for earlier PSUs (granted 2021) certified in early 2024 reflects strong TSR outcomes; shown for NEOs and relevant units, indicating high alignment with shareholder returns .
Equity Ownership & Alignment
- Stock ownership guidelines: executives must achieve, within five years of appointment, holdings equal to 1–5x base salary depending on executive group level; NEO requirements are 3–5x (CEO 5x; CFO/COO roles 4x; Vantage President 3x). As of Dec 31, 2024, 100% of NEOs met guidelines; officers’ unvested PSUs at target count toward compliance .
- Pledging and hedging: DTE explicitly prohibits officers and directors from hedging and pledging DTE securities, including margin accounts—reducing alignment risk and lender-driven selling pressure .
- Beneficial ownership: Paul is not a director or NEO, so his individual holdings are not disclosed in the proxy’s ownership tables; firm-wide security ownership tables cover directors and NEOs only .
Employment Terms
- Executive Severance: All officers, except the CEO, participate in the Executive Severance Allowance Plan for involuntary termination under specified circumstances; separate change-in-control agreements exist for NEOs and certain other executives, intended to support management continuity .
- Change-in-Control (CIC) terms: Company-wide features include double-trigger vesting (acceleration only if awards are not assumed or upon termination without cause post-transaction), no excise tax gross-ups, and minimum vesting periods for equity awards .
- CIC economics illustrated for NEOs include severance equal to two times base salary plus target bonus, pro-rated AIP, pension enhancements, and non-compete consideration equal to 100% of base plus target bonus; while Paul’s specific amounts are not disclosed, these frameworks inform expected officer protections .
Compensation Governance, Peer Group, and Say-on-Pay
- Peer group benchmarking: Meridian advises the O&C Committee; peer group includes leading U.S. regulated utilities (e.g., Southern, Duke, Exelon, PSEG, WEC, Xcel) with regular updates and market studies (Aon Oct-2024) to keep compensation near median .
- Clawback: Three-year recovery window for incentive compensation following a material accounting restatement, applicable to AIP and LTIP .
- Say-on-pay support: 96.2% approval in 2023 and 2024, signaling broad shareholder endorsement of the pay-for-performance model .
Performance Compensation – 2025 AIP Measures (Framework for Paul’s current plan)
| Metric | Weight | Notes |
|---|---|---|
| Operating EPS | 20% | DTE Energy-level |
| Cash from Operations | 20% | DTE Energy-level |
| Customer Satisfaction | 15% | Net Promoter Score |
| Employee Engagement (Gallup) | 5% | DTE Energy-level |
| Safety Performance | 10% | DTE Energy-level |
| Utility Operating Excellence Index | 30% | Grid reliability and nuclear metrics |
LTIP targets (granted 2025, pays 2028): officer target awards range 190%–625% of base salary, delivered in PSUs and restricted stock; 2027 PSU cycle measures TSR vs peer group (80%) and 3-year cumulative operating EPS (20%) for DTE Energy executives .
Investment Implications
- Strong alignment: AIP and LTIP metrics directly tie Paul’s variable pay to EPS, cash flow, reliability, safety, and TSR, with double-trigger CIC and clawback—reducing agency risk and supporting long-term value creation .
- Vesting and selling pressure: Three-year RSU vesting (to Jan 31, 2027) and prohibited pledging/hedging lower near-term forced-selling risk; PSU outcomes hinge on TSR percentile and cumulative EPS, creating performance leverage .
- Retention risk: Participation in the Executive Severance Plan plus robust LTIP targets (190%–625% of salary for officers) and ownership guidelines suggest balanced retention incentives; absence of CEO-style individual employment contract reduces asymmetry but specifics for Paul are undisclosed .
- Execution focus: Paul’s background in distribution operations and generation, and prior leadership of DTE Gas, aligns with DTE’s reliability improvement (e.g., storm restoration, CEMI4 reductions) and decarbonization programs—key drivers for AIP/PSU payouts and investor returns .