We believe an effective corporate responsibility strategy starts with a commitment to strong corporate governance.
Our Board of Directors provides oversight and guidance to help FirstEnergy implement our long-term, sustainable growth platform and fulfill our mission to make customers’ lives brighter, the environment better and communities stronger, while offering a competitive dividend to shareholders.
We seek to maintain a well-rounded and diverse (by gender, race and ethnicity) Board, representing a wide breadth of experiences and perspectives that balance the institutional knowledge of longer-tenured members with the fresh perspectives brought by newer directors. The following highlights illustrate current demographics and characteristics of our Board:
FirstEnergy and its Board are committed to upholding high standards for ethics and integrity—the cornerstone of effective corporate governance. We have recently taken several steps to strengthen our policies and practices, including:
Eliminating supermajority vote requirements
Implementing a majority vote standard in director elections
Expanding the responsibilities of the Corporate Governance and Corporate Responsibility Committee to include oversight of sustainability and corporate responsibility
Implementing proxy access
Enacting a Board-level policy to consider diverse slates of qualified candidates for director seats and a goal, set by the Board of Directors, to maintain at least 30% diverse members for the foreseeable future
In 2019, FirstEnergy received the best possible score from Institutional Shareholder Services’ governance rating system, which assesses a company’s governance risk.
Our Board has five standing committees. All committees are comprised solely of independent directors as determined by the Board in accordance with our Corporate Governance Policies, which include the New York Stock Exchange listing standards and applicable Securities and Exchange Commission rules. The committees include: Audit; Compensation; Corporate Governance and Corporate Responsibility; Finance; and Operations, Safety and Nuclear Oversight.
Our leadership team consists of 14 executive officers, four of whom are women and two of whom are racially or ethnically diverse. This group represents the highest level of leadership, who oversee the business operations of the company. Our senior management team consists of 75 people, 17 of whom are women and six of whom are racially or ethnically diverse.
FirstEnergy’s integrated approach to corporate governance includes year-round engagement with a broad base of shareholders. This collaborative program results in productive dialogue among the Board, company leadership and shareholders on a wide variety of topics, and it supports our goal of considering the interests of shareholders in our policies, practices and decision-making.
FirstEnergy’s ongoing shareholder outreach and engagement efforts include ESG matters. Input from our shareholders contributed to FirstEnergy’s commitment to reinforce our focus on corporate responsibility and transparency.