Garret Senger
MDU RESOURCES GROUPAbout Garret Senger
Garret Senger (age 64) is Chief Utilities Officer at MDU Resources, appointed in January 2024 after serving as Executive Vice President – Regulatory Affairs, Customer Service, and Administration from June 2018–December 2023 . In 2024, MDU delivered consolidated net income of $281.1 million including regulated energy delivery earnings of $189.7 million (+13.6% YoY), with electric utility earnings of $74.8 million and pipeline earnings at a record $68.0 million; the company completed spinoffs of Knife River and Everus, creating $7 billion of incremental value and was added to the S&P SmallCap 600 index . Senger’s annual incentive tied to his segment delivered a 103.1% payout of target for 2024, reflecting near-target performance on Adjusted Electric & Natural Gas Distribution Segment Earnings plus a 5% Responsible Business modifier .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| MDU Resources Group, Inc. | Chief Utilities Officer | Jan 2024–present | Executive leadership over electric and natural gas distribution businesses |
| MDU Resources Group, Inc. | EVP – Regulatory Affairs, Customer Service & Administration | Jun 2018–Dec 2023 | Led regulatory affairs and customer administration across utilities |
External Roles
No external directorships or outside roles for Senger are disclosed in the proxy or 10-K executive officer bios .
Fixed Compensation
| Item | 2023 | 2024 |
|---|---|---|
| Base salary ($) | 336,000 | 480,000 |
| EICP target (% of base) | 45% (increased to 60% in Jan-2024) | 60% |
| EICP target ($) | — | 288,000 |
| Actual EICP payout ($) | — | 296,928 |
Performance Compensation
Annual Incentive (EICP) – 2024 design and results (Senger)
| Metric | Weight | Threshold ($mm) | Target ($mm) | Maximum ($mm) | Actual payout (% of target) |
|---|---|---|---|---|---|
| Adjusted Electric & Natural Gas Distribution Segment Earnings | 100% | 110.8 | 123.1 | 135.4 | 98.1% |
| Responsible Business modifier | +/−5% | — | +5.0% of target (completed initiatives) | — | +5.0% |
- Strategic goal (Everus spinoff) did not apply to Senger’s EICP in 2024 (N/A) .
Long-Term Incentive (LTI) – RSUs (2023–2024 grants and vesting)
| Grant year | Grant date | Original RSUs (#) | Grant date fair value ($) | Converted RSUs after Everus spin (#) | Vesting | Settlement |
|---|---|---|---|---|---|---|
| 2023 | — | 20,336 | — | 20,336 (to vest 12/31/2025) | 3-year cliff; prorated on retirement/death/disability per LTIP | No later than Mar 15 following vesting period |
| 2024 | 2/15/2024 | 24,755 | 516,142 | 47,296 | 3-year cliff (vest 12/31/2026) | No later than Mar 2027 |
- 2024 LTI awarded entirely in RSUs (temporary program design during spinoffs); the 2025 program returns to a mix of PSAs (70%) and RSUs (30%) with three-year EPS and relative TSR goals .
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Beneficial ownership (common shares) | 70,877 shares (Record Date: Mar 14, 2025) |
| Ownership as % of shares outstanding | ~0.035% (70,877 / 204,331,170 shares ) |
| Unvested RSUs (12/31/2024) | 67,632 units; market value $1,218,729 at $18.02 |
| Shares vested in 2024 | 18,298 shares; $347,364 value realized |
| Stock ownership guideline | 3× annual base salary for Section 16 officers; compliance measured annually; all NEOs met/exceeded (or within 5-year window) at end of 2024 |
| Retention requirement | Must retain 50% of net after-tax vested shares for two years or until termination; hold all net shares if not yet at guideline |
| Hedging/pledging | Prohibited for executives; margin accounts permitted only if stock excluded from margin/pledge |
| Trading policy | Pre-clearance, blackout windows, and 10b5-1 cooling-off rules under Insider Trading Policy (Feb 13, 2025) |
Employment Terms
- Employment agreements: None; all NEOs are employed at-will .
- Clawback policy: Recovery of incentive-based pay upon accounting restatement per SEC/NYSE rules; applies to current and former executive officers .
- Change-in-control (CIC) severance: Upon qualifying termination within two years of a CIC, lump-sum of prorated base salary and EICP, plus 2× (for NEOs other than CEO) the sum of annual base salary and target EICP; retiree medical (if eligible) and outplacement; payments reduced to avoid excise tax if beneficial .
- Equity treatment on CIC: RSUs/PSAs vest in full upon CIC unless replaced with a qualifying “Replacement Award” of like value/terms; PSAs may convert to time-based vesting per award terms .
- RSU retirement/death/disability proration: If retired at ≥55 and ≥10 years of service—Year 1 forfeited, Year 2 prorated, Year 3 fully vests; death/disability prorated by months in vesting period .
- Deferred comp: Senger did not participate in DCP in 2024 .
- Pension/SERP:
- Pension Plan: 26 years credited service; present value $510,567 (12/31/2024) .
- SISP (Supplemental Income Security Plan): 10 years service; present value $698,267; monthly retirement payment $5,840; monthly death benefit $11,680 .
Compensation Structure Analysis
- Mix and at-risk pay: For NEOs, majority of target pay is at-risk; program emphasizes LTI to drive long-term alignment (65.2% at-risk for average NEOs in 2024) .
- 2024–2025 shift: Temporary RSU-only LTI in 2024 to preserve alignment during spinoffs; re-introduction of PSAs in 2025 with 3-year EPS and relative TSR targets increases performance sensitivity .
- Governance safeguards: No perquisites materially different from employees; no dividends on unvested shares; no tax gross-ups; anti-hedging/pledging; strong clawback policy .
Say-on-Pay & Peer Benchmarking
- Say-on-Pay approval: 96% support at the 2024 Annual Meeting; committee retained overall design with enhancements for 2025 .
- Compensation peer group: Updated to focus on utilities and construction services benchmarks; added APi Group, Avista, Comfort Systems, New Jersey Resources, OGE, Primoris; removed construction materials names .
Investment Implications
- Pay-for-performance: Senger’s EICP is fully formulaic and focused on his business segment’s earnings, with prudent adjustments and a modest Responsible Business modifier (+5%), aligning cash incentives to operational delivery .
- Retention and vesting pressure: RSU cliff vesting dates in Dec 2025 (2023 grant) and Dec 2026 (2024 grant) could create settlement-related supply; however, the retention requirement and pre-clearance/trading window constraints temper near-term selling pressure .
- Alignment and risk: Ownership guidelines (3× salary), prohibition on hedging/pledging, and clawback policy reinforce alignment; CIC severance at 2× base+target EICP is moderate and equity vesting contingent on lack of replacement awards reduces windfall risk .
- Performance track record: Near-target segment results (98.1%) and company-level regulated earnings growth in 2024 support effective execution amid strategic transformation; reintroduction of PSAs (EPS/TSR) in 2025 increases long-term value creation focus .
Appendices
Outstanding Equity and Vesting
| Metric | 2023 | 2024 |
|---|---|---|
| RSUs outstanding (#) | 20,336 (vest 12/31/2025) | 47,296 (vest 12/31/2026) |
| Grant date fair value ($) | — | 516,142 |
| RSUs vested in year (#) | — | 18,298 |
Pension/SERP Values (12/31/2024)
| Plan | Years credited | Present value ($) | Monthly benefit details |
|---|---|---|---|
| Pension Plan | 26 | 510,567 | — |
| SISP | 10 | 698,267 | Retirement $5,840; Death $11,680 |
Beneficial Ownership
| Item | Value |
|---|---|
| Common shares owned | 70,877 |
| Shares outstanding | 204,331,170 |
| Ownership % | ~0.035% (derived from above) |
Base Salary Progression
| Year | Base salary ($) |
|---|---|
| 2023 | 336,000 |
| 2024 | 480,000 |
2024 EICP Targets (Senger)
| Component | Target |
|---|---|
| EICP target (% of base) | 60% |
| EICP target ($) | 288,000 |
| Actual paid ($) | 296,928 |
Notes: LTI (RSUs/PSAs) terms include dividend equivalents paid on settlement and proration rules for retirement/death/disability under LTIP/award agreements . Equity changes upon CIC follow LTIP Articles 13 and related provisions . Trading and 10b5-1 details per Insider Trading Policy (Feb 13, 2025) .