Robert Richard
DTE ENERGYAbout Robert Richard
Robert A. Richard is President and Chief Operating Officer of DTE Gas, responsible for all utility gas operations, including sales, distribution, and storage services; he has been with DTE since 2003 and has held senior leadership roles across customer service, major projects, and corporate services . He is 64 years old and has served as President & COO of DTE Gas since July 3, 2023 . Richard holds BS and MS degrees in Chemical Engineering from Ohio State University, is a graduate of MIT’s Nuclear Reactor Technology course, and is a Six Sigma Master Black Belt; company performance context includes 2024 operating EPS of $6.83, cash from operations of $3.64B, and a five-year TSR of 129% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| DTE Gas (DTE Energy) | President & COO | 2023–present | Leads utility gas operations; reliability, growth and customer service |
| DTE Energy | EVP, IT, Customer Service & Corporate Services | Pre‑2023 | Enterprise IT modernization; service excellence across functions |
| DTE Energy | SVP, Major Enterprise Projects & Customer Service | Pre‑2023 | Oversight of major power gen, distribution, renewables, gas & midstream projects; customer service leadership |
| Bethlehem Steel | VP, Operations & Process Improvement | Pre‑2003 | Led sales, marketing, operations for Eastern Division; process improvements |
| General Electric | Senior executive, GE LEXAN Americas Manufacturing | Pre‑2003 | Led manufacturing for phenolics, BPA, SAN, chlorine, polycarbonate; Whitney Award for technical achievement |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Engineering Society of Detroit (ESD) | Board President | Current | Industry leadership; STEM and engineering community engagement |
| ACCESS (Arab Community Center for Economic & Social Services) | Board Member | Current | Community impact and social services governance |
| Oakland University SECS | Engineering Advisory Board Member | Current | Guidance on engineering education and industry linkage |
| Central Michigan University | Engineering Advisory Board Member | Current | Advisory support to engineering programs |
Fixed Compensation
- Individual compensation for executive officers not named as NEOs is not disclosed in proxy tables. Program design uses base salary plus performance-based cash and equity.
| Element | Program Detail | Source |
|---|---|---|
| Annual Incentive Plan (AIP) target ranges (2025) | For executive officers: 75%–145% of base salary | |
| Long-Term Incentive Plan (LTIP) target ranges (2025 grants paying in 2028) | 190%–625% of base salary delivered in restricted stock and performance shares |
Performance Compensation
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Annual bonus metrics and weights (AIP) — corporate framework: | Metric (AIP) | Weight (2024) | Weight (2025) | Source | |---|---:|---:|---| | DTE Operating EPS | 20% | 20% | | | DTE Cash From Operations | 20% | 20% | | | Customer Satisfaction (NPS) | 15% (2024; utility measures composition varies 2024 vs 2025) | 15% | | | Employee Engagement (Gallup) | 5% | 5% | | | Safety Performance | 10% | 10% | | | Utility Operating Excellence Index | 30% | 30% | |
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2024 AIP corporate results used for executive awards (illustrative of plan outcomes; not individual payout disclosure for Richard): | Measures | Weight | Threshold | Target | Maximum | Result | Payout | Weighted Avg Payout | Source | |---|---:|---:|---:|---:|---:|---:|---:|---| | 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 ≤48h | 10% | 88% | 93% | 98% | 95% | 140.0% | 14.00% | | | CEMI4 (%) | 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% | |
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LTIP design (executive officers): performance shares measure over 3 years with 0–200% payout; weights for DTE executives: TSR vs peer group 80%, 3-year cumulative operating EPS 20%; time-based restricted stock typically 3-year vest .
Equity Ownership & Alignment
| Item | Detail | Source |
|---|---|---|
| Reported beneficial shareholdings (indicative) | 27,372 DTE shares held (as of Feb 27, 2024; based on Form 4 aggregation) | |
| Form 4 activity (2024) | Sold 5,130 shares at $107.29 on Feb 27, 2024 (~$550k); acquired 7,210 shares on Jan 31, 2024 (likely equity grants); tax withholding 518 shares Jan 27, 2024 | |
| Ownership as % of outstanding | Management and directors each below 1% as of Dec 31, 2024 | |
| Pledging/Hedging | Prohibited for directors and officers; no pledging of company stock allowed | |
| Stock ownership guidelines | Executives expected to hold shares equal to a multiple of base salary within 5 years (robust policy; specific multiple disclosed for NEOs only) | |
| Vesting norms | Restricted stock generally 3-year vest; performance shares 3-year measurement, dividends not paid on unvested PS |
Employment Terms
| Provision | Richard’s Coverage/Company Policy | Source |
|---|---|---|
| Executive Severance Allowance Plan (without cause termination) | Standard schedule for executives: Basic benefit 50% of Base Pay if <2 yrs service; 100% if ≥2 yrs; plus 12 months COBRA or cash equivalent; outplacement assistance up to 6 months or cash equivalent; payments by Mar 15 following severance year | |
| Change-in-Control (CIC) Agreement (effective Sept 11, 2025) | Company executed CIC agreements with all executive officers, including Robert A. Richard; double-trigger protection within 2 years after a CIC, with cash severance based on base salary+target annual bonus, pro‑rated bonus, full acceleration of time- and performance-based equity; non-compete consideration payment; 280G cutback vs full-pay optimization; arbitration and legal fee coverage if claim brought in good faith | |
| CIC severance multiple (tiers) | Forms attached show tiers: 200% + additional 100% non‑compete consideration (EX‑10.2); 150% + 50% (EX‑10.3); 100% base+bonus (EX‑10.4); filing does not specify which tier applies to Richard | |
| CIC definitions & auto-renewal | Agreement auto‑extends annually unless notice 90+ days prior; Good Reason includes material pay/title diminutions, relocation >35 miles, or breach; double-trigger vesting; successorship required | |
| Clawback | Company clawback policy covers incentive compensation for 3 prior years upon accounting restatement due to material noncompliance | |
| Indemnification | Company entered into indemnification agreements with executive officers; separate indemnification in Articles and agreements for officers and directors |
Performance & Track Record
- Company performance under the executive framework: operating EPS of $6.83 in 2024, cash from operations of $3.64B, five-year TSR of 129% (base 2019=100), dividend increased 6.9% in 2024 .
- Operational initiatives relevant to Gas: replaced 225+ miles of cast iron pipe and expanded service to new customers in 2024, advancing safety and reliability objectives .
Compensation Structure Analysis
- Strong pay-for-performance linkage: AIP and LTIP metrics tie executive compensation to EPS, cash flow, customer/safety, and TSR vs peers; LTIP is primarily performance shares (≈70%) plus restricted stock (≈30%), discouraging option risk (no option grants since 2010) .
- Governance features reduce misalignment risk: clawback policy, prohibition on pledging/hedging, minimum vesting periods, no excise tax gross‑ups in CIC; equity acceleration subject to double-trigger unless successor fails to assume awards .
Risk Indicators & Red Flags
- Insider selling pressure: February 27, 2024 sale (~$550k) may indicate liquidity or tax planning; set against January 31, 2024 equity acquisition/grant, limiting interpretation without broader pattern data .
- Safety metrics zeroed in prior year due to fatality (company‑wide impact on AIP payouts), highlighting operational risk emphasis in incentives .
Investment Implications
- Alignment: Richard’s incentives are heavily indexed to multi-year TSR, EPS, cash generation and utility operating outcomes; pledging ban and clawback strengthen alignment with shareholders .
- Retention: Double-trigger CIC protections, auto-renewing agreements, and severance framework reduce flight risk during strategic events; non‑compete consideration and outplacement terms provide balanced retention economics .
- Execution focus: Utility Operating Excellence metrics (storm restoration, CEMI4, pipe replacement, safety) embedded in AIP suggest continued emphasis on reliability and safety under Richard’s purview at DTE Gas .
- Trading signals: 2024 Form 4 mix of grant-related acquisitions and a single notable sale is neutral without sustained selling; continued monitoring of insider activity advisable .