Kimberly A. Fontan
Executive Vice President and Chief Financial Officer at ETR
Executive
About Kimberly A. Fontan
- Executive Vice President and Chief Financial Officer of Entergy Corporation since 2022; previously Senior Vice President and Chief Accounting Officer (2019–2022) and Vice President, System Planning (2017–2019) .
- Also serves as Executive Vice President and CFO of Entergy’s operating utilities and as President and Chair of the Board of System Energy Resources, Inc. (SERI) .
- Age: 51 (as disclosed in FY 2024 10-K executive officers section) .
- Company performance context under her finance leadership: 2024 total shareholder return (TSR) 55.9% (1st quartile), and 2022–2024 TSR 51.6% (1st quartile vs Philadelphia Utility Index) . See revenue/EBITDA trend below.
Entergy revenue and EBITDA trend (context for pay-for-performance)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | 13,420,765,000* | 12,022,944,000* | 11,805,802,000* |
| EBITDA ($) | 3,868,953,000* | 4,734,753,000* | 5,048,772,000* |
*Values retrieved from S&P Global.
Past Roles
| Organization | Role | Years |
|---|---|---|
| Entergy Corporation | EVP & CFO | 2022–Present |
| Entergy Corporation (and opcos) | SVP & Chief Accounting Officer | 2019–2022 |
| Entergy Arkansas/Louisiana/Mississippi/New Orleans/Texas | Vice President, System Planning | 2017–2019 |
Fixed Compensation
| Component | 2023 | 2024 | Notes |
|---|---|---|---|
| Base Salary | $625,000 | $706,250 | Increase effective Apr 1, 2024 to align toward market median |
| Target Annual Incentive (% of year-end base) | 75% | 85% | Increased for 2024 due to tenure/performance in role |
Performance Compensation
Annual Incentive Program (AIP) framework (Company EAM funding)
- 2024 measures and weights: Adjusted EPS (60%), Adjusted FFO/Debt (10%), Safety (SIF/TRIR) (10%), Customer NPS (10%), DIB (10%) .
- 2024 outcomes: Calculated EAM 151% with Adjusted EPS $3.65 (156%) and Adjusted FFO/Debt 15.0% (200%), Safety 90%, Customer NPS 200%, DIB 89%; Committee exercised downward discretion to 142% due to contractor fatalities (Safety reset to zero) .
- Ms. Fontan’s 2024 AIP: Target $600,313 (85% of $706,250); paid $876,457 (146% of target) .
Long-Term Incentives (granted Jan 25, 2024; mix 60% PUP, 20% stock options, 20% restricted stock; double-trigger CIC)
| Grant Element | 2024 Grant Detail |
|---|---|
| PUP target units (2024–2026) | 18,506 units |
| Stock Options | 41,206 options @ $49.54 strike; 3-year ratable vest; 10-year term |
| Restricted Stock | 7,502 shares; 3-year ratable vest |
| Grant Date Value (Total) | $1,861,138 |
PUP metrics and design
- 2024–2026 PUP: 80% Relative TSR vs Philadelphia Utility Index; 20% Environmental Stewardship (60% Climate Resilience, 40% Carbon-Free Generation with CCS modifier) .
- 2022–2024 PUP certified payout: 185% of target; Ms. Fontan received 21,063 shares (incl. dividends), valued $1,726,955 on Jan 17, 2025 .
2024 Option Exercises and Stock Vested (realized in 2024)
| Name | Options Exercised (#) | Value Realized ($) | Shares Vested (#) | Value Realized on Vesting ($) |
|---|---|---|---|---|
| Kimberly A. Fontan | — | — | 24,003 | $1,873,014 |
2024 AIP metric calibration (targets/results) – Company EAM basis
| Measure | Weight | Min | Target | Max | 2024 Result | Payout Level |
|---|---|---|---|---|---|---|
| Adjusted EPS ($) | 60% | 3.51 | 3.60 | 3.69 | 3.65 | 156% |
| Adjusted FFO/Debt (%) | 10% | 14.0 | 14.4 | 14.9 | 15.0 | 200% |
| Safety (SIF/TRIR) | 10% | SIF 7 / TRIR 0.55 | SIF 5 / TRIR 0.45 | SIF 3 / TRIR 0.40 | SIF 18 / TRIR 0.41 | 90% |
| Customer NPS | 10% | Res 52 / Bus 39 / LC&I 43 | 49 / 37 / 45 | 47 / 32 / 47 | 34 / 26 / 49 | 200% |
| DIB (qualitative) | 10% | — | — | — | Qualitative | 89% |
| EAM – Calculated | 100% | — | 100% | 200% | — | 151% |
| EAM – Adjusted | — | — | — | — | — | 142% (Safety reset to zero) |
Equity Ownership & Alignment
- Beneficial ownership (as of Mar 7, 2025): 49,695 shares; options exercisable within 60 days: 82,644; stock units: — .
- Outstanding awards at 12/31/24 (partial): Unexercised options include 41,206 (2024 grant, unexercisable), 9,154/18,312 (2023 grant ex/unex), 6,606/3,304 (2022 grant ex/unex), etc.; unvested restricted shares include 37,012 and 27,908; unearned PUP units include 7,794 and 3,796 .
- Ownership guidelines: Executive Vice Presidents must hold 3x base salary; all NEOs were in compliance at last review .
- Hedging/pledging: Entergy prohibits hedging and pledging by directors and executive officers; 10b5-1 plans require approval and are allowed only in open windows .
Employment Terms
- No employment agreements with executive officers .
- Change-in-Control: Double-trigger applies to cash severance and equity vesting acceleration under plan terms .
- Estimated CIC severance (as of 12/31/24): $3,707,813 cash plus continuation benefits (e.g., subsidized COBRA for 18 months for Ms. Fontan), with equity per plan terms .
- Clawback policies: Dodd-Frank compliant policy plus an additional discretionary recoupment policy enabling recovery (including time-based awards) for specified detrimental conduct within lookback periods .
- Perquisites and benefits: Limited perquisites; NEOs eligible for deferred compensation plan (no NEO deferrals outstanding as of 12/31/24); defined benefit pension accruals as disclosed below .
Pension snapshot (12/31/24)
| Plan | Years Credited | Present Value of Accumulated Benefit |
|---|---|---|
| Pension Equalization Plan (PEP) | 28.56 | $1,468,200 |
| Entergy Retirement Plan | 28.56 | $793,300 |
Compensation Structure Analysis
- Mix and risk: For 2024, other NEOs’ target pay ~76% performance-based; LTI is the largest component, aligning with long-term results .
- Metric evolution: In 2024, Adjusted FFO/Debt moved into AIP (10%) and Environmental Stewardship moved into PUP (20%), sharpening cash flow discipline annually and moving environmental goals to a multi-year framework with quantitative resilience and carbon-free generation targets plus CCS modifier .
- Goal rigor and discretion: Committee reduced 2024 AIP funding from 151% to 142% after contractor fatalities, underscoring safety accountability despite strong financial and NPS outcomes .
Say-on-Pay & Peer Benchmarking
- Say-on-Pay support: ~96% approval in 2024; five-year average ~95% .
- Peer/benchmarking: Uses survey data for market medians; references the Philadelphia Utility Index constituents to test overall reasonableness and for Relative TSR in PUP .
Risk Indicators & Red Flags
- Hedging/pledging prohibited (reduces misalignment risk) .
- Robust clawback (beyond Dodd-Frank) and discretionary recoupment policy mitigate misconduct risk .
- Related-party transactions: None identified since Jan 1, 2024 .
Investment Implications
- Alignment: High equity mix, multi-year PUP with Relative TSR and quantitative environmental metrics, and strong ownership guidelines indicate solid pay-performance alignment for the CFO cohort .
- Near-term supply of shares: 2022–2024 PUP vested at 185% with 21,063 shares to Ms. Fontan and 24,003 shares vested in 2024 from awards, a moderate source of potential selling liquidity, though hedging/pledging is prohibited and 10b5-1 controls apply .
- Retention: Meaningful unvested options/restricted stock and ongoing PUP cycles create retention hooks; CIC protection is double-trigger with defined benefits, reducing unwanted turnover risk amid strategic growth and resilience programs .
- Performance backdrop: Strong 2024 TSR and improving EBITDA support incentive realizations; continued focus on Adjusted EPS and FFO/Debt in AIP aligns with credit and dividend objectives .