Vincent Sorgi
PPLAbout Vincent Sorgi
PPL’s President and CEO since June 2020 and a director since 2020, Sorgi brings ~30 years in the utility industry with deep finance, operations, and regulatory expertise (former CFO 2014–2019; President & COO 2019–2020) . Age 53, he is a management director and member of the Executive Committee; PPL maintains an independent Chair and 90% independent board, mitigating dual‑role concerns . Under his leadership, 2024 ongoing EPS was $1.69 (at target), dividend grew >7%, and shares rose nearly 20% in 2024; 2022–2024 PSU tranches paid above target (TSR 157%, EG 146%, LTS 196%), signaling alignment between pay and performance .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| PPL Corporation | President & CEO | Jun 2020–present | Led pivot to a premier pure‑play U.S. regulated utility; advanced “utility of the future,” tech/digital initiatives, reliability and O&M savings . |
| PPL Corporation | President & COO | Jul 2019–May 2020 | Led day‑to‑day operations across utilities . |
| PPL Corporation | EVP (Jan–Jun 2019); CFO; SVP; VP & Controller | 2010–2019 | Orchestrated spinoff of competitive generation; strengthened finance, controls, M&A execution . |
| PPL Generation/ES&M | Financial Director; Controller | 2006–2010 | Finance leadership in generation and energy marketing . |
| Public Service Enterprise Group | Finance roles | ~9 years | Built foundational regulated utility finance experience . |
| Deloitte & Touche LLP | Auditor | ~4 years | Public accounting grounding; AICPA member . |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Electric Power Research Institute (EPRI) | Chair, Board | Current | Industry R&D leadership; informs technology strategy . |
| Edison Electric Institute (EEI) | Director | Current | Policy/industry engagement . |
| St. Luke’s University Health Network | Director | Current | Community/health system governance . |
| Da Vinci Science Center | Trustee (emeritus) | Current | STEM advocacy . |
Fixed Compensation
| Year | Base Salary ($) | Notes |
|---|---|---|
| 2024 | 1,237,367 | 3% increase approved to $1,238,060 effective Jan 1, 2024 . |
| 2023 | 1,201,326 | — |
| 2022 | 1,166,336 | — |
| Metric | Target bonus (% of salary) | 2024 payout (% of target) | 2024 Annual Incentive ($) |
|---|---|---|---|
| CEO Annual Cash Incentive | 125% | 114.62% | 1,773,831 |
Performance Compensation
- Annual incentive framework (2024): Corporate EPS (funding gate $1.60; target $1.69; actual $1.69 = 100%), Corporate Strategic Initiative (TSA exit on time/under budget = 166.54%), Corporate Operational Goals (weighted business-unit KPIs = 96.44%), Individual performance (150%) .
| 2024 Annual Incentive Metrics (CEO) | Weight | Target | Actual | Payout |
|---|---|---|---|---|
| Corporate EPS (ongoing) | 65% | $1.69 | $1.69 | 100% |
| Corporate Strategic Initiative (TSA exit) | 15% | Apps live by Sep’24; TSA budget $43.5m | Live Aug’24; $39.98m | 166.54% |
| Corporate Operational (LKE, PPL Electric, RIE) | 10% | Multi-KPIs | Weighted 96.44% | 96.44% |
| Individual | 10% | — | — | 150% |
| Resulting Earned vs Target | — | — | — | 114.62% |
- Long-term incentives (granted 2024): 80% PSUs (50% TSR vs compensation peer group; 25% Earnings Growth; 25% Long‑Term Sustainability), 20% time‑vested RSUs (3-year cliff) .
| 2024 LTI Grant | % of Salary | $ Grant | RSUs ($/Units) | PSUs ($) and Target Units (TSR/EG/LTS) |
|---|---|---|---|---|
| CEO (Sorgi) | 525% | 6,499,815 | 1,299,963; 50,328 units | 5,199,852; 100,656 / 50,328 / 50,328 units |
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PSU mechanics and targets: TSR pays 0–200% vs peer group (forfeited <25th pct; target at 50th) over 2024–2026; EG baseline 2024 midpoint ($1.63–$1.75), target 6% CAGR, 0–200% payout; LTS uses leading safety indicators and building energy use reduction with 0–200% interpolation .
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Realized 2022–2024 PSU outcomes: TSR 157% (70th percentile), EG 146%, LTS 196% .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 629,893 shares (incl. 140,502 RSUs) as of Mar 3, 2025 . |
| Unvested RSUs (market value 12/31/24) | 136,868 units; $4,442,741 . |
| Upcoming RSU vest schedule | 41,518 (1/27/2025); 43,675 (1/20/2026); 51,675 (1/25/2027) . |
| 2024 stock vested (shares/value) | 341,907; $10,844,626 . |
| Stock ownership guidelines | CEO 6x salary; apply 5-year compliance window; others on track as of 12/31/24 . |
| Hedging/pledging | Prohibited for directors/officers; no pledging allowed . |
| Clawback | NYSE/SEC-compliant recoupment policy effective Oct 2, 2023; supplemental policy Mar 8, 2024 for VP+ . |
| Deferred comp balance (12/31/24) | $5,078,635; 2024 exec contributions $157,949; company $87,185 . |
| Pension values (12/31/24) | PPL Retirement Plan PV $855,089; PPL SERP PV $9,138,302 . |
Employment Terms
| Feature | Summary |
|---|---|
| Employment agreement | None; executives are at-will . |
| Executive Severance Plan | Involuntary (not for cause): 2x base salary, 24 months COBRA equivalent, up to $50k outplacement (release required) . |
| Change-in-control (CIC) | Double-trigger; lump sum = 3x (base + 3-yr avg bonus), 24 months COBRA equivalent lump sum, outplacement to $50k; RSUs vest; PSUs pro-rated at least at target. No tax gross-ups . |
Estimated benefits as of 12/31/2024:
| Scenario (CEO) | Cash Severance | Other Separation Benefits | RSUs | PSUs TSR | PSUs EG | PSUs LTS | Total (illustrative) |
|---|---|---|---|---|---|---|---|
| Involuntary (no cause) | 2,476,120 | 103,981 | — (forfeited) | — | — | — | 2,580,101 |
| CIC (closing only) | — | — | — | 5,703,837 | 2,851,937 | 2,851,937 | 11,407,711 |
| CIC + Qualifying Termination | 10,301,277 | 103,981 | 4,442,741 | 5,703,837 | 2,851,937 | 2,851,937 | 26,255,710 |
Notes: RSUs generally vest on CIC termination; PSUs handled per plan/CIC agreements as shown .
Board Governance (Director Service)
- Role: Management director since 2020; member, Executive Committee .
- Board structure: Independent Chair (Rogerson); 90% independent directors; directors hold executive sessions without management .
- Meetings/attendance: 6 board meetings; average attendance 99%; all directors attended ≥75% and 2024 annual meeting .
- Independence: Sorgi is not independent; independent Chair mitigates CEO board influence .
- Director pay: Employee directors receive no director compensation .
Director Compensation (as Director)
- Employee directors (including Sorgi) receive no separate board fees; non‑employee director pay detailed in proxy .
Compensation & Incentives Summary (2019–2024 snapshots)
| Year | Salary ($) | Stock Awards ($) | Non-Equity Incentive ($) | Pension Change ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2024 | 1,237,367 | 6,741,436 | 1,773,831 | 1,483,614 | 119,495 | 11,355,743 |
| 2023 | 1,201,326 | 6,442,931 | 2,013,800 | 2,198,654 | 112,845 | 11,969,556 |
| 2022 | 1,166,336 | 5,926,933 | 1,918,678 | — | 134,628 | 9,146,575 |
Additional 2024 perquisites detail (subset): 401(k) match $10,350; NQDC employer contrib $87,185; financial planning $11,000; other (charitable match, car service) $10,960 .
Performance & Track Record
- 2024 operating and financial execution: Ongoing EPS at midpoint of original guidance; ongoing EPS $1.69 (non‑GAAP); dividend +>7%; completed >$3B capex for reliability/resilience; cumulative O&M savings reached ~$130m (high end of target) .
- Shareholder returns: PPL stock +~20% in 2024 among top performing regulated utilities; 2022–2024 TSR PSU at 157% (70th percentile vs UTY) .
- Strategy and operations: IT transformation and data-driven grid modernization; Rhode Island Energy integration completed; advancing generation transition in KY (new CCGT, coal retirements, solar/storage) .
Compensation Structure Analysis
- High at-risk mix: 79% of CEO target comp “at‑risk”; 68% performance-based; use of multi-factor PSUs (TSR/EG/LTS) aligns with shareholder value and operational goals .
- Annual plan rigor: EPS funding gate ($1.60) prevents payouts when earnings miss; 2024 strategic/operational attainment mixed (strong TSA, reliability varied by segment) supporting calibrated payout (114.62%) .
- LTI design evolution: Since 2022 added EG and sustainability metrics; TSR peer set updated in 2024 to compensation peer group, increasing relevance .
- Governance safeguards: Clawback compliant; no options granted since 2013; anti-hedging/pledging; no CIC gross‑ups; say‑on‑pay approval >96% in 2024 .
Risk Indicators & Red Flags
- Related party transactions: None involving directors/executives; large holders reviewed under policy .
- Section 16(a): Administrative Form 4 technical issue in Jan 2024 (including Sorgi) corrected Mar 5, 2024 .
- Use of non‑GAAP: Incentives use “ongoing EPS” with defined adjustments; reconciliations provided (Annex A), but reliance on adjusted EPS warrants monitoring .
- Pledging/hedging: Prohibited — reduces alignment risk .
- Option repricing: Not applicable; no options currently outstanding .
Compensation Peer Group (Benchmarking context)
- 16 regulated utilities selected for size/operations comparability; PPL’s percentile rank at 12/31/2024: TSR 1‑yr 74th; 3‑yr 70th; size metrics around median; used for pay benchmarking and relative TSR .
Board Governance (Committees and Independence)
- Committees: Audit, Executive, Finance, Governance/Nominating/Sustainability, People & Compensation; all independent except Executive; PCC uses FW Cook as independent consultant .
- Independent leadership: Independent Chair; executive sessions each regular meeting .
- Attendance: 99% average; mandatory retirement age 75; 6 board meetings, 25 total board+committee meetings in 2024 .
Employment Terms (Detailed CIC/Severance Mechanics)
| Provision | Detail |
|---|---|
| CIC triggers | Board turnover, 30% stock acquisition, merger with <70% continuity, sale of substantially all assets . |
| “Cause”/“Good Reason” | Willful misconduct/refusal; adverse changes in comp/duties/location, etc. . |
| Severance plan (non‑CIC) | Two years base salary, COBRA equivalent, outplacement (≤$50k) . |
| Equity on CIC | RSUs vest on qualifying termination; PSUs pro‑rated and at least at target under plan/CIC terms . |
Investment Implications
- Alignment: Strong linkage to EPS, TSR, and sustainability metrics with explicit gates and multi-year PSUs supports shareholder alignment; high at‑risk mix and robust clawback, anti‑hedging/pledging reduce governance risk .
- Potential selling pressure windows: Significant RSU vesting tranches in Jan 2025/2026/2027 (41.5k/43.7k/51.7k units) could create periodic liquidity overhang around open windows for tax or diversification needs .
- Retention/CIC economics: Executive Severance and 3x CIC multiple with equity acceleration provide meaningful retention and focus incentives through strategic transitions/M&A; no gross-ups is shareholder‑friendly .
- Pay sentiment: 2024 say‑on‑pay >96% and peer‑aligned design lower compensation controversy risk; monitor ongoing EPS adjustments and evolving LTS targets to ensure rigor persists .
- Execution track: Above‑target multi-year PSU outcomes and 2024 stock/EPS/dividend performance reflect improving fundamentals and disciplined execution, though regulatory outcomes (e.g., KY CPCN) and load growth (data centers) remain key variables for forward EG/TSR performance .