Timothy J. Penny
About Timothy J. Penny
Independent Trustee and Board Chair of Allspring Utilities and High Income Fund (ERH). Born 1951; Trustee since 1996 and Chair since 2018, with expected retirement on or about December 31, 2026 . Background includes President & CEO of Southern Minnesota Initiative Foundation (2007–2025), Vice Chair of the Economic Club of Minnesota (since 2007), Co-Chair of the Committee for a Responsible Federal Budget (since 1995), Senior Fellow at the University of Minnesota Humphrey Institute (1995–2017), and 12 years in the U.S. House of Representatives (MN-1) .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Southern Minnesota Initiative Foundation | President & CEO | 2007–2025 | Led regional economic development initiatives |
| University of Minnesota Humphrey Institute | Senior Fellow | 1995–2017 | Public policy and governance expertise |
| U.S. House of Representatives (MN-1) | Member of Congress | 12 years | Legislative experience, federal budgeting |
| NorthStar Education Finance, Inc. (non-profit) | Board of Trustees | 2007–2022 | Oversight in education finance |
External Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Economic Club of Minnesota | Vice Chair | Since 2007 | Leadership in economic policy forums |
| Committee for a Responsible Federal Budget | Co-Chair | Since 1995 | National fiscal policy oversight |
| Other non-profit (unspecified) | Board Member | Not specified | Non-profit governance engagement |
Board Governance
- Independence: Board comprised entirely of Independent Trustees (not “interested persons” per 1940 Act); Penny serves as an Independent Trustee .
- Board Role: Chair of the Board of Trustees since 2018; Board meets four times in person and a fifth meeting by video conference annually; may hold special meetings as needed .
- Committee Structure: Standing Nominating & Governance Committee (NGC) and Audit Committee are made up of Trustees listed (includes Penny) . Current NGC Chair is James G. Polisson (since 2024); Audit Committee Chair is Jane A. Freeman (since 2025) .
- Attendance: Penny attended the previous year’s Annual Meeting of Shareholders telephonically, per Fund policy encouraging trustee attendance .
- Class/Term: Class III nominee to serve until 2028 meeting if elected; expected retirement on or about December 31, 2026 .
Fixed Compensation
| Metric | FY 2024 | FY 2025 |
|---|---|---|
| Compensation From the Fund (USD) | $3,412 | $4,910 |
| Total Compensation From Fund and Fund Complex (USD) | $430,000 | $451,750 |
| Pension/Retirement Benefits | None disclosed for Trustees | |
| Expense Reimbursement | Trustees reimbursed for Board meeting expenses | |
| Committee Chair Fees Policy | NGC Chair receives additional annual fee; Board Chair may assign duties but specific Chair fee not disclosed |
Note: Proxy discloses aggregate trustee cash compensation and reimbursement; it does not itemize annual retainer vs. meeting/committee fees by trustee .
Performance Compensation
| Component | FY 2024 | FY 2025 | Notes |
|---|---|---|---|
| Stock awards (RSUs/PSUs) | Not disclosed | Not disclosed | No equity award detail in proxy compensation tables |
| Option awards | Not disclosed | Not disclosed | No option detail disclosed |
| Bonuses / Variable Cash | Not disclosed | Not disclosed | No performance bonus disclosed |
| Performance Metrics (TSR, EBITDA, ESG) | Not disclosed | Not disclosed | No performance-linked metrics disclosed |
| Vesting Schedules | Not disclosed | Not disclosed | No vesting information disclosed |
Other Directorships & Interlocks
| Category | Status |
|---|---|
| Current public company boards | None (past 5 years) |
| Prior public company boards | None disclosed |
| Private/non-profit boards | NorthStar Education Finance (2007–2022) ; Economic Club of Minnesota (Vice Chair) ; Committee for a Responsible Federal Budget (Co-Chair) ; other non-profit board (unspecified) |
| Shared directorships with competitors/suppliers/customers | Not disclosed |
Expertise & Qualifications
- Public policy and fiscal expertise from Congressional service and leadership at CRFB; governance experience through Board Chair role .
- Non-profit executive leadership (SMIF) and academic policy experience (Humphrey Institute), aligning with oversight of adviser/sub-adviser under the 1940 Act .
- Oversees 92 portfolios in the Fund Complex (2025), down from 95 (2024), indicating broad complex-level oversight .
Equity Ownership
| Metric | As of Aug 31, 2024 | As of Aug 31, 2025 |
|---|---|---|
| Dollar Range of Equity Securities in ERH | $1–$10,000 | $1–$10,000 |
| Aggregate Dollar Range in Fund Complex | Over $100,000 | Over $100,000 |
| Shares pledged as collateral | Not disclosed | |
| Ownership guidelines | NGC periodically reviews independent trustee share ownership policies | |
| Compliance status vs guidelines | Not disclosed |
Governance Assessment
- Independence and Experience: Penny is an Independent Trustee and long-tenured Board Chair, bringing fiscal policy and governance expertise; the board is fully independent, enhancing oversight of adviser and sub-adviser relationships .
- Engagement: Attended the prior Annual Meeting telephonically; Board maintains regular quarterly in-person meetings plus a video meeting, with special meetings as needed—positive for board effectiveness .
- Compensation Alignment: Trustee compensation appears cash-based with reimbursement and no pension; no disclosure of equity/option grants or performance-linked metrics for trustees, suggesting low risk of pay-for-performance distortions in board oversight .
- Ownership Signal: Penny’s direct ERH holding is in the $1–$10K range while aggregate complex holdings are over $100K; direct fund ownership is relatively modest—investors may view this as a soft alignment signal versus larger personal stakes .
- Succession/Continuity: Expected retirement on or about Dec 31, 2026 provides visibility into leadership transition planning for the Chair role .
- Committee Structure and Chair Fees: NGC charter provides additional fees to the NGC Chair (currently Polisson), and mandates periodic review of trustee compensation and ownership policies—indicative of structured governance processes .
Red Flags
- Low direct ERH share ownership range ($1–$10K) may be viewed as limited “skin in the game” by some investors .
- No granular breakdown of director pay (retainer vs committee vs meeting fees) or equity grants—limits transparency into compensation mix, though aggregate totals are disclosed .
No related-party transactions, hedging/pledging, legal proceedings, or say-on-pay results are disclosed for Penny in the proxy excerpts reviewed .