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Name | Symbol | Market | Type |
---|---|---|---|
Hawaiian Electric Inc (PK) | USOTC:HAWLL | OTCMarkets | Preference Share |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.8775 | -5.90% | 14.00 | 14.01 | 15.00 | 14.65 | 13.40 | 14.65 | 500 | 19:17:43 |
|
|
| |
|
|
| Celeste A. Connors | | | Michael J. Kennedy | |
| Richard J. Dahl | | | Yoko Otani | |
| Elisia K. Flores | | | Keith P. Russell | |
| Peggy Y. Fowler | | | William James Scilacci, Jr. | |
| Micah A. Kāne | | | Scott W. H. Seu | |
|
Notice of 2023 Annual
Meeting of Shareholders |
| |
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| | |
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TIME AND DATE
|
| | |
LOCATION
|
| | |
RECORD DATE
|
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Friday, May 5, 2023 at
10:00 a.m., Hawai‘i Time |
| | |
The 2023 Annual Meeting will be conducted in-person at American Savings Bank Campus, 300 N. Beretania St., 7th Floor, Kākou 1 & 2, Honolulu, HI 96817
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| | |
March 1, 2023
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DESCRIPTION
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| | | | |
BOARD RECOMMENDATION
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Proposal 1
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| | Election of ten directors to serve a one-year term expiring at the 2024 Annual Meeting of Shareholders. | | |
FOR Each Nominee
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Proposal 2
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| | Advisory vote to approve the compensation for HEI’s named executive officers. | | |
FOR
|
|
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Proposal 3
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| | Advisory vote on the frequency of future advisory votes on HEI’s executive compensation. | | |
FOR Every One Year
|
|
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Proposal 4
|
| |
Ratification of the appointment of Deloitte & Touche LLP as HEI’s independent registered public accountant for 2023.
Transaction of such other business as may properly come before the 2023 Annual Meeting.
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FOR
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|
| | | |
BEFORE THE MEETING
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DURING THE MEETING
|
| | | | |||
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| By Telephone: You can vote your shares by calling 1-800-690-6903. | | | By Internet: You can vote your shares online at www.proxyvote.com. | | | By Mail: You can vote by mail by marking, dating, and signing your proxy card or voting instruction form and returning it in the postage-paid envelope. | | | In Person: Attend our annual meeting and vote by ballot. | |
| | Important Notice Regarding the Internet Availability of Proxy Materials for the 2023 Annual Meeting of Shareholders to be held on May 5, 2023 | | |
| | The accompanying Proxy Statement, 2022 Annual Report to Shareholders and 2022 Annual Report on Form 10-K are available at www.hei.com | | |
|
Table of Contents
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| | | | | 1 | | | |
|
PROPOSAL NO. 1:
ELECTION OF TEN DIRECTORS |
| | | | 7 | | |
| | | | | 8 | | | |
| | | | | 18 | | | |
| | | | | 22 | | | |
| | | | | 24 | | | |
| | | | | 26 | | | |
|
PROPOSAL NO. 2:
ADVISORY VOTE TO APPROVE THE COMPENSATION OF HEI’S NAMED EXECUTIVE OFFICERS |
| | | | 29 | | |
| | | | | 30 | | | |
| | | | | 30 | | | |
| | | | | 32 | | | |
|
We Use Comparative Market Data as a
Reference Point for Compensation |
| | | | 33 | | |
|
What We Pay and Why: Compensation
Elements and 2022 Pay Decisions |
| | | | 35 | | |
| | | | | 48 | | | |
|
Compensation & Human Capital
Management Committee Report |
| | | | 50 | | |
| | | | | 50 | | | |
| | | | | 51 | | | |
| | | | | 51 | | | |
| | | | | 53 | | |
|
Outstanding Equity Awards at
2022 Fiscal Year-End |
| | | | 54 | | |
| | | | | 55 | | | |
| | | | | 56 | | | |
| | | | | 58 | | | |
|
Potential Payments Upon Termination or
Change in Control |
| | | | 59 | | |
| | | | | 61 | | | |
| | | | | 62 | | | |
| | | | | 65 | | | |
| | | | | 66 | | | |
| | | | | 67 | | | |
| | | | | 68 | | | |
| | | | | 70 | | | |
| | | | | 71 | | | |
| | | | | 72 | | | |
| | | | | 75 | | | |
|
Exhibit A: Reconciliation of GAAP to Non-GAAP
Measures: Incentive Compensation Adjustments |
| | | | A-1 | | |
|
Management Proposals
|
| |
Board Vote Recommendation
|
| |
Page
|
|
| 1. Election of Ten Directors | | |
FOR Each Nominee
|
| |
7
|
|
| 2. Advisory Vote to Approve the Compensation of HEI’s Named Executive Officers | | |
FOR
|
| |
29
|
|
| 3. Advisory Vote on the Frequency of Future Advisory Votes on Executive Compensation | | | FOR Every One Year | | |
65
|
|
| 3. Ratification of Appointment of Independent Auditor for 2023 | | |
FOR
|
| |
70
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|
Name
|
| |
Age
|
| |
Director
Since |
| |
Primary Occupation
|
| |
Independent
|
| |
Committee
Membership |
| |
Other Public
Boards |
|
|
Celeste A. Connors
|
| |
47
|
| |
2019
|
| |
Chief Executive Officer, Hawai‘i
Green Growth Local2030 Hub |
| |
|
| |
NCGC
|
| |
None
|
|
|
Richard J. Dahl
|
| |
71
|
| |
2017
|
| |
Former Chairman, President &
Chief Executive Officer, James Campbell Co., LLC |
| |
|
| |
CC (Chair),
ARC, EC |
| |
Dine Brands
Global, Inc. (Chair)
IDACORP (Chair)
|
|
|
Admiral Thomas B. Fargo
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| |
74
|
| |
2005
|
| |
President, Fargo Associates, LLC
|
| |
|
| |
CC, NCGC, EC
(Chair) |
| |
The Greenbrier
Companies
Matson, Inc.
|
|
|
Elisia K. Flores
|
| |
38
|
| |
2021
|
| |
Chief Executive Officer & Vice Chair,
L&L Franchise Inc. |
| |
|
| |
ARC
|
| |
None
|
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|
Peggy Y. Fowler
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71
|
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2011
|
| |
Former Chief Executive Officer,
Portland General Electric Company |
| |
|
| |
CC, NCGC
(Chair), EC |
| |
Columbia Banking
System, Inc. |
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|
Micah A. Kāne
|
| |
54
|
| |
2019
|
| |
President & Chief Executive Officer,
Hawai‘i Community Foundation |
| |
|
| |
CC, NCGC
|
| |
None
|
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|
Michael J. Kennedy
|
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51
|
| |
2022
|
| |
Former Chief Executive Officer,
Velo Labs |
| |
|
| |
None
|
| |
None
|
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Yoko Otani
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68
|
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2023
|
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Partner, Straterix
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ARC
|
| |
None
|
|
|
William James Scilacci, Jr.
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67
|
| |
2019
|
| |
Former Executive Vice President & Chief
Financial Officer, Edison International |
| |
|
| |
ARC (Chair), EC
|
| |
None
|
|
| Scott W. H. Seu | | | 57 | | | 2022 | | |
President & Chief Executive Officer,
Hawaiian Electric Industries, Inc. |
| | | | | EC | | | None | |
|
BOARD OF DIRECTORS
|
| | | |
| Independent Chair of the Board | | |
YES
|
|
|
Number of independent directors
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9 of 101
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|
| Number of directors who are from diverse (non-Caucasian) ethnic backgrounds | | |
4 of 101
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Number of directors who are women
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4 of 101
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| All Audit & Risk, Compensation & Human Capital Management and Nominating and Corporate Governance Committee members are independent | | |
YES
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|
| All directors attended at least 75% of meetings of the Board and Board committees on which they served in 2022 (during the period that the director served as a director) | | |
YES
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|
| Policy limitation on membership on other public company boards | | |
YES
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|
| Annual Board and committee self-evaluations and periodic director self and peer review | | |
YES
|
|
| Directors required to submit resignation for Board consideration upon the end of their term after reaching age 75 or in the event of a significant change in their employment | | |
YES
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| Share ownership and retention requirements for directors and executives | | |
YES
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Experience/Expertise
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Tenure (Years)
|
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Utility/Energy Industry
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Banking
|
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Local Hawai‘i Commercial
|
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Sustainability/
Environmental Leadership |
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Renewable Energy Expertise
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Senior Leadership
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Entrepreneurship/Business
Transformation |
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Government & Regulation
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Financial/Accounting
|
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Legal & Risk Management
|
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Corporate Governance
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| |||
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Celeste A. Connors
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Independent
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4
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| | | | | | | | | | |
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| | | | | | | | | | | | |
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Richard J. Dahl
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Independent
|
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6
|
| | |
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| | | | | | |
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| | | | | | |
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| | |
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|
Admiral Thomas
B. Fargo, USN |
| |
Independent
(Chair) |
| |
18
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| | | | | | |
|
| | |
|
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|
| | |
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Elisia K. Flores
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Independent
|
| |
1
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| | |
|
| | | | | | |
|
| | | | | | | | |
|
Peggy Y. Fowler
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| |
Independent
|
| |
12
|
| | |
|
| | |
|
| | | | | | |
|
| | |
|
| | |
|
| | |
|
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| | | | | | |
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Micah A. Kāne
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Independent
|
| |
4
|
| | | | | | | | | | |
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| | | | | | |
|
| | | | | | |
|
| | | | | | | | | | | | |
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Michael J. Kennedy
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Independent
|
| |
<1
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| | | | | | |
|
| | | | | | | | | | | | | | |
|
| | |
|
| | | | | | |
|
| | |
|
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|
Yoko Otani
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Independent
|
| |
<1
|
| | | | | | |
|
| | | | | | | | | | | | | | |
|
| | | | | | | | | | |
|
| | |
|
| | |
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|
Keith P. Russell1
|
| |
Independent
|
| |
12
|
| | | | | | |
|
| | | | | | | | | | | | | | |
|
| | |
|
| | | | | | |
|
| | |
|
| | |
|
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|
William James Scilacci, Jr.
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| |
Independent
|
| |
4
|
| | |
|
| | | | | | | | | | | | | | |
|
| | |
|
| | | | | | |
|
| | |
|
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Scott W. H. Seu
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| |
CEO
|
| |
1
|
| | |
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| | | | | | |
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| | | | | | | | | | | | |
|
Race/Ethnicity*
|
| | |
Asian
|
| | |
Native Hawaiian or
Other Pacific Islander |
| | |
Hispanic or Latino
|
| | |
Black or African
American |
| | |
White
|
| | |
American Indian or
Alaska Native |
| | |
Female
|
| | |
Male
|
|
|
Celeste A. Connors
|
| | | | | | | | | | | | | | | | | | |
|
| | | | | | |
|
| | | | |
|
Richard J. Dahl
|
| | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | |
|
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|
Admiral Thomas B. Fargo, USN
|
| | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | |
|
|
|
Elisia K. Flores
|
| | |
|
| | | | | | |
|
| | | | | | | | | | | | | | |
|
| | | | |
|
Peggy Y. Fowler
|
| | | | | | | | | | | | | | | | | | |
|
| | | | | | |
|
| | | | |
|
Micah A. Kāne
|
| | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | |
|
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|
Michael J. Kennedy
|
| | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | |
|
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|
Yoko Otani
|
| | |
|
| | | | | | | | | | | | | | | | | | | | | | |
|
| | | | |
|
Keith P. Russell1
|
| | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | |
|
|
|
William James Scilacci, Jr.
|
| | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | |
|
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|
Scott W. H. Seu
|
| | |
|
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|
| | | | | | | | | | | | | | | | | | | | | | |
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| | | |
Net Income
|
| |
Diluted Earnings per Share (EPS)
|
| |
Return on Average Common Equity
|
| |||||||||
| 2022 | | | | $ | 241M | | | | | $ | 2.20 | | | | | | 10.5% | | |
| 2021 | | | | $ | 246M | | | | | $ | 2.25 | | | | | | 10.4% | | |
| 2020 | | | | $ | 198M | | | | | $ | 1.81 | | | | | | 8.6% | | |
| | | |
Total Shareholder Return (%)
|
| |||||||||||||||||||||
| | | |
HEI
|
| |
S&P 500 Index
|
| |
Edison Electric
Institute Index |
| |
KBW Regional
Banking Index |
| ||||||||||||
| 2022 | | | | | 4.3% | | | | | | (18.1)% | | | | | | 1.2% | | | | | | (6.9)% | | |
| 3-year | | | | | (1.2)% | | | | | | 24.8% | | | | | | 17.1% | | | | | | 16.1% | | |
| 5-year | | | | | 36.8% | | | | | | 56.9% | | | | | | 52.7% | | | | | | 18.6% | | |
| 10-year | | | | | 143.4% | | | | | | 226.5% | | | | | | 180.5% | | | | | | 167.2% | | |
| | OUR EXECUTIVE COMPENSATION PROGRAM INCORPORATES BEST PRACTICES: | | | |||||||||
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| |
Majority of target compensation opportunity tied to performance
|
| |
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No tax gross ups (except for executive death benefit frozen in 2009)
|
| |
| |
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Rigorous performance goals are aligned with business strategy
|
| |
|
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No employment contracts
|
| |
| |
|
| |
Stock ownership and retention requirements apply to named executive officers
|
| |
|
| |
Minimal perquisites
|
| |
| |
|
| |
Clawback policy for performance-based pay
|
| |
|
| |
Prohibition against hedging and pledging of HEI stock
|
| |
| |
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| |
“Double trigger” change-in-control agreements
|
| |
|
| |
No dividends or dividend equivalents paid on unearned performance shares
|
| |
| |
|
| |
The Board recommends that you vote FOR each nominee listed above to serve as a Director.
|
| |
|
Name
|
| |
Audit & Risk
|
| |
Compensation &
Human Capital Management |
| |
Executive
|
| |
Nominating and
Corporate Governance |
| | ||
|
Celeste A. Connors
|
| | | | | | | | | | |
|
| | ||
|
Richard J. Dahl
|
| |
|
| |
|
| |
|
| | | | | ||
|
Thomas B. Fargo
|
| | | | |
|
| |
|
| |
|
| | ||
|
Elisa K. Flores
|
| |
|
| | | | | | | | | | | ||
|
Peggy Y. Fowler
|
| | | | |
|
| |
|
| |
|
| | ||
|
Micah A. Kāne
|
| | | | |
|
| | | | |
|
| | ||
|
Yoko Otani2
|
| |
|
| | | | | | | | | | | | |
|
Keith P. Russell
|
| |
|
| | | | |
|
| | | | | ||
|
William James Scilacci Jr.
|
| |
|
| | | | |
|
| | | | | ||
|
Scott W. H. Seu1
|
| | | | | | | |
|
| | | | | ||
|
Number of meetings in 2022
|
| |
11
|
| |
5
|
| |
—
|
| |
4
|
| |
|
Position*
|
| |
2022 Annual Retainer
|
| |||
| HEI Nonexecutive Chair of the Board | | | | | 125,000 | | |
| HEI Director | | | | | 85,000 | | |
| HEI Audit & Risk Committee Chair | | | | | 25,000 | | |
| HEI Compensation & Human Capital Management Committee Chair | | | | | 25,000 | | |
| HEI Nominating and Corporate Governance Committee Chair | | | | | 25,000 | | |
| HEI Audit & Risk Committee Member | | | | | 10,000 | | |
| HEI Compensation & Human Capital Management Committee Member | | | | | 10,000 | | |
| HEI Nominating and Corporate Governance Committee Member | | | | | 10,000 | | |
| Hawaiian Electric Audit & Risk Committee Chair | | | | | 18,750 | | |
| Hawaiian Electric Audit & Risk Committee Member | | | | | 7,500 | | |
| ASB Audit Committee Chair | | | | | 18,750 | | |
| ASB Audit Committee Member | | | | | 7,500 | | |
| ASB Risk Committee Chair | | | | | 25,000 | | |
| ASB Risk Committee Member | | | | | 10,000 | | |
| HEI Board | | | $1,500 per meeting after 8 meetings | |
| HEI Audit & Risk Committee | | | $1,500 per meeting after 10 meetings | |
| HEI Compensation & Human Capital Management Committee | | | $1,500 per meeting after 6 meetings | |
| HEI Nominating and Corporate Governance Committee | | | $1,500 per meeting after 6 meetings | |
| Hawaiian Electric Audit & Risk Committee | | | $1,000 per meeting after 6 meetings | |
| ASB Audit Committee | | | $1,000 per meeting after 10 meetings | |
| ASB Risk Committee | | | $1,000 per meeting after 6 meetings | |
|
Name
|
| |
Fees Earned
or Paid in Cash ($)1 |
| |
Stock Awards
($)2 |
| |
Changes in
Pension Value and Nonqualified Deferred Compensation Earnings ($) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| |||||||||||||||
| Celeste A. Connors | | | | | 95,000 | | | | | | 120,000 | | | | | | — | | | | | | — | | | | | | 215,000 | | |
| Richard J. Dahl | | | | | 121,500 | | | | | | 120,000 | | | | | | — | | | | | | — | | | | | | 241,500 | | |
| Thomas B. Fargo, HEI Chair3 | | | | | 230,000 | | | | | | 120,000 | | | | | | — | | | | | | — | | | | | | 350,000 | | |
| Elisia K. Flores | | | | | 112,113 | | | | | | 120,000 | | | | | | — | | | | | | — | | | | | | 232,113 | | |
| Peggy Y. Fowler | | | | | 120,000 | | | | | | 120,000 | | | | | | — | | | | | | — | | | | | | 240,000 | | |
| Micah A. Kāne | | | | | 102,363 | | | | | | 120,000 | | | | | | — | | | | | | — | | | | | | 222,363 | | |
| Michael J. Kennedy4 | | | | | 85,636 | | | | | | 91,068 | | | | | | — | | | | | | — | | | | | | 176,704 | | |
| Keith P. Russell | | | | | 132,000 | | | | | | 120,000 | | | | | | — | | | | | | — | | | | | | 252,000 | | |
| William James Scilacci, Jr. | | | | | 111,500 | | | | | | 120,000 | | | | | | — | | | | | | — | | | | | | 231,500 | | |
|
Name
|
| |
HEI
Board Retainer ($) |
| |
HEI
Committee Retainer ($) |
| |
HEI
Chair Retainer ($) |
| |
HEI Extra
Meeting Fees1 ($) |
| |
ASB
Board Retainer ($) |
| |
ASB
Audit Committee Retainer ($) |
| |
ASB
Risk Committee Retainer ($) |
| |
ASB
Extra Meeting Fees1 ($) |
| |
Total
($) |
| |||||||||||||||||||||||||||
| Celeste A. Connors | | | | | 85,000 | | | | | | 10,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 95,000 | | |
| Richard J. Dahl | | | | | 85,000 | | | | | | 35,000 | | | | | | — | | | | | | 1,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 121,500 | | |
| Thomas B. Fargo, HEI Chair2 | | | | | 85,000 | | | | | | 20,000 | | | | | | 125,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 230,000 | | |
| Elisia K. Flores | | | | | 85,000 | | | | | | 7,363 | | | | | | — | | | | | | — | | | | | | — | | | | | | 18,750 | | | | | | — | | | | | | 1,000 | | | | | | 112,113 | | |
| Peggy Y. Fowler | | | | | 85,000 | | | | | | 35,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 120,000 | | |
| Micah A. Kāne | | | | | 85,000 | | | | | | 17,363 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 102,363 | | |
| Michael J. Kennedy | | | | | 35,340 | | | | | | — | | | | | | — | | | | | | — | | | | | | 29,796 | | | | | | 7,500 | | | | | | 10,000 | | | | | | 3,000 | | | | | | 85,636 | | |
| Keith P. Russell | | | | | 85,000 | | | | | | 10,000 | | | | | | — | | | | | | 1,500 | | | | | | — | | | | | | 7,500 | | | | | | 25,000 | | | | | | 3,000 | | | | | | 132,000 | | |
| William James Scilacci, Jr. | | | | | 85,000 | | | | | | 25,000 | | | | | | — | | | | | | 1,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 111,500 | | |
| |
|
| |
The Board recommends that you vote FOR the advisory resolution approving the compensation of HEI’s Named Executive Officers as disclosed in this Proxy Statement.
|
| |
|
Name
|
| |
Title
|
| |
Entity
|
|
| Scott W. H. Seu | | | HEI President & CEO | | | Holding company | |
| Paul K. Ito1 | | | HEI Executive Vice President, Chief Financial Officer and Treasurer1 | | | Holding company | |
| Kurt K. Murao | | | HEI Executive Vice President, General Counsel, Chief Administrative Officer and Corporate Secretary | | | Holding company | |
| Shelee M. T. Kimura | | | Hawaiian Electric President & CEO | | | Electric utility subsidiary | |
| Ann C. Teranishi | | | ASB President & CEO | | | Bank subsidiary | |
| Gregory C. Hazelton2 | | | Former HEI Executive Vice President and Chief Financial Officer | | | Holding company | |
| | What We Do | | | |||
| |
|
| |
Link pay to performance
|
| |
| |
|
| |
Utilize rigorous performance conditions that encourage long-term value creation
|
| |
| |
|
| |
Balance short- and long-term compensation to promote sustained performance over time
|
| |
| |
|
| |
Grant majority of long-term incentives in the form of performance-based awards
|
| |
| |
|
| |
Use the competitive median as a reference point in setting compensation levels
|
| |
| |
|
| |
Review tally sheets when making compensation decisions
|
| |
| |
|
| |
Mitigate undue risk in compensation programs
|
| |
| |
|
| |
Utilize “double-trigger” change-in-control agreements
|
| |
| |
|
| |
Maintain a clawback policy for performance-based compensation
|
| |
| |
|
| |
Require stock ownership and retention by named executive officers; CEO must own five times the CEO’s base salary and each of the other NEOs must own two times their respective base salary
|
| |
| |
|
| |
Prohibit pledging of Company stock and transactions designed to hedge the risk of stock ownership
|
| |
| |
|
| |
Utilize an independent compensation consultant to advise the Compensation & Human Capital Management Committee
|
| |
| | What We Don’t Do | | | |||
| |
|
| |
No employment contracts
|
| |
| |
|
| |
No tax gross ups, except under the Executive Death Benefit Plan which was frozen in 2009
|
| |
| |
|
| |
No compensation programs that are reasonably likely to create material risk to the Company
|
| |
| |
|
| |
No significant perquisites
|
| |
| |
|
| |
No dividends or dividend equivalents on unearned performance shares
|
| |
| | | | | |
HEI 2022 Peer Group (applies to
Messrs. Seu, Ito, Murao and Hazelton) |
| | |
Utility Subsidiary 2022 Peer Group
(applies to Ms. Kimura) |
| | |
Bank Subsidiary 2022 Peer Group
(applies to Ms. Teranishi) |
| |
| | Selection Criteria | | | |
•
Publicly traded, US-based electric and multi-utility companies
•
Revenue balanced in a range of approximately 0.4x to 2.5x HEI’s revenue
•
Market cap balanced in a range of approximately 0.4x to 2.5x HEI’s revenue
•
Location as a secondary consideration
|
| | |
•
Electric and multi-utility companies from HEI’s peer group
•
Revenue balanced in a range of approximately 0.4x to 2.5x Hawaiian Electric’s revenue
•
Market cap and location as secondary considerations
|
| | |
•
Regional banks and thrifts
•
Revenue balanced in a range of approximately 0.5x to 2x ASB’s revenue
•
Total assets balanced in a range of approximately 0.5x to 2x ASB’s total assets
•
Secondary consideration of 2 of 3 of the following:
◦
Proportion of loan portfolio composed of over 30% single family and less than 85% residential
◦
Located on the west coast or Hawai‘i
◦
Ratio of noninterest income to operating revenue from 10%-40%
|
| |
| | Peer Group for 2022 Compensation | | | |
ALLETE, Inc.
Alliant Energy Corp. AVANGRID, Inc. Avista Corp. Black Hills Corp. Evergy, Inc. IDACORP, Inc. MDU Resources Group Inc. NiSource Inc. Northwestern Corp OGE Energy Corp. Pinnacle West Capital Corp. PNM Resources Inc. Portland General Electric |
| | |
ALLETTE, Inc.
Alliant Energy Corp. Avista Corp. Black Hills Corp. Evergy, Inc. IDACORP, Inc. MDU Resources Group Inc. NiSource Inc. Northwestern Corp. OGE Energy Corp. Pinnacle West Capital Corp. PNM Resources Inc. Portland General Electric |
| | |
Ameris Bancorp
Bank of Hawai‘i Berkshire Hills Bancorp Central Pacific Financial Community Bank System CVB Financial First Busey First Financial Bank First Hawaiian Bank Heritage Financial Independent Bank Park National Renasant Corp Republic Bancorp Sandy Spring Bancorp Seacoast Banking South State Tompkins Financial TriCo Bancshares Westamerica Bancorp |
| |
| |
ALLETTE, Inc.
Alliant Energy Corp. Ameren Corp. American Electric Power Co., Inc. AVANGRID, Inc. Avista Corp. Black Hills Corp. Centerpoint Energy, Inc. CMS Energy Corp. Consolidated Edison, Inc. |
| | |
Dominion Energy, Inc.
DTE Energy Co. Duke Energy Corp. Edison International Entergy Corp. Evergy, Inc. Eversource Energy Exelon Corp. FirstEnergy Corp. IDACORP, Inc. |
| | |
MDU Resources
Group Inc. MGE Energy, Inc. NextEra Energy, Inc. NiSource Inc. NorthWestern Corp. OGE Energy Corp. Otter Tail Corp. PG&E Corp. Pinnacle West Capital Corp. PNM Resources Inc. |
| | |
Portland General Electric
PPL Corp. Public Service Enterprise Group Inc. Sempra Energy Southern Co. Unitil Corp. WEC Energy Group, Inc. Xcel Energy Inc. |
| |
|
Compensation Element
|
| |
Summary
|
| |
Objectives
|
|
| Base Salary | | | Fixed level of cash compensation set in reference to peer group median (may vary based on performance, experience, responsibilities, expertise and other factors). | | | Attract and retain talented executives by providing competitive fixed cash compensation. | |
| Annual Performance-Based Incentives | | | Variable cash award based on achievement of pre-set performance goals for the year. Award opportunity is determined as a percentage of base salary. Performance below threshold levels yields no incentive payment. | | | Drive achievement of key business results linked to short-term and long-term strategy and reward executives for their contributions to such results. Balance compensation cost and return by paying awards based on performance. | |
| Long-Term Performance-Based Incentives | | | Variable equity award based on meeting pre-set performance objectives over a 3-year period. Award opportunity is determined as a percentage of base salary. Performance below threshold levels yields no incentive payment. | | | Motivate executives and align their interests with those of shareholders by promoting long-term value growth and by paying awards in the form of equity. Balance compensation cost and return by paying awards based on performance. | |
| Annual RSU Grant | | | Annual equity grants in the form of RSUs that vest in equal installments over 3 years (beginning with grants made in 2021). Amount of grant is determined as a percentage of base salary. | | | Promote alignment of executive and shareholder interests by ensuring executives have significant ownership of HEI stock. Retain talented leaders through multi-year vesting. | |
| Benefits | | | Includes defined benefit pension plans and defined contribution plan (for HEI/Utility employees) and defined contribution plan (for Bank employees); deferred compensation plans; double-trigger change-in-control agreements; minimal perquisites; and an executive death benefit plan (frozen since 2009). | | | Enhance total compensation with meaningful and competitive benefits that promote retention and peace of mind and contribute to financial security. Double-trigger change-in-control agreements encourage focused attention of executives during major corporate transitions. | |
| | | |
Base Salary1
($) |
| |
Performance-based
Annual Incentive (Target Opportunity2 as % of Base Salary) |
| |
Performance-based
Long-term Incentive (Target Opportunity2 as % of Base Salary) |
| |
RSUs
(Value as % of Base Salary) |
| ||||||||||||||||||
|
Name
|
| |
2021
|
| |
2022
|
| |
2021
|
| |
2022
|
| |
2021-23
|
| |
2022-24
|
| |
2021
|
| |
2022
|
| ||||||
| Scott W. H. Seu | | | | | 506,667 | | | | | | 875,000 | | | |
80
|
| |
100
|
| |
98
|
| |
140
|
| |
60
|
| |
same
|
|
| Paul K. Ito | | | | | 300,550 | | | | | | 313,425 | | | |
45
|
| |
same
|
| |
68
|
| |
45
|
| |
30
|
| |
same
|
|
| Kurt K. Murao | | | | | 402,000 | | | | | | 428,667 | | | |
60
|
| |
same
|
| |
76
|
| |
60
|
| |
45
|
| |
same
|
|
| Shelee M. T. Kimura | | | | | 292,000 | | | | | | 450,000 | | | |
50
|
| |
75
|
| |
61
|
| |
90
|
| |
35
|
| |
853
|
|
| Ann C. Teranishi4 | | | | | 473,707 | | | | | | 605,000 | | | |
70
|
| |
same
|
| |
72
|
| |
65
|
| |
50
|
| |
30
|
|
| Gregory C. Hazelton | | | | | 546,400 | | | | | | 560,233 | | | |
65
|
| |
70
|
| |
119
|
| |
80
|
| |
775
|
| |
50
|
|
|
2022 Annual Incentive Performance
Metrics & Why We Use Them |
| |
Weighting
|
| |
Goals
|
| |
Results
|
| |
Total
Achieved as a % of Target Opportunity |
| ||||||
|
Threshold
|
| |
Target
|
| |
Maximum
|
| ||||||||||||
| Seu, Ito, Murao and Hazelton | | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
|
HEI Consolidated Adjusted Net Income1 focuses on fundamental earnings, which correlates to shareholder value
|
| |
60%
|
| |
$208.2M
|
| |
$231.3M
|
| |
$247.5M
|
| |
$230.6M
|
| | | |
|
Utility Operations2 supports effective utility operations for all stakeholders
|
| |
25%
|
| |
See note 2
below |
| |
See note 2
below |
| |
See note 2
below |
| |
See note 2
below |
| |
99%
|
|
|
ASB Return on Assets (ROA)3 measures how efficiently the Bank deploys its assets by comparing return to total assets
|
| |
15%
|
| |
0.66%
|
| |
0.76%
|
| |
0.86%
|
| |
0.82%
|
| | | |
| Kimura | | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
| Utility Consolidated Net Income focuses on fundamental earnings, which correlates to shareholder value | | |
40%
|
| |
$174.3M
|
| |
$193.7M
|
| |
$203.4M
|
| |
$188.9M
|
| | | |
|
Utility Consolidated Customer Satisfaction4 focuses on improving the customer experience through all points of contact with the Utility
|
| |
15%
|
| |
Consolidated
score of 76 or a benchmark of 60th percentile in 2 of 4 quarters |
| |
Consolidated
score of 76 or a benchmark of 60th percentile in 3 of 4 quarters |
| |
Consolidated
score of 76 or a benchmark of 60th percentile in 4 of 4 quarters |
| |
Below Threshold
|
| | | |
|
Utility Consolidated Reliability: System Average Interruption Duration Index (SAIDI)5 promotes system reliability for customers
|
| |
5%
|
| |
127 minutes and
Reliability SAIDI PIM penalty $340,000 or less |
| |
111 minutes and no
Reliability SAIDI PIM penalty |
| |
96 minutes and no
Reliability SAIDI PIM penalty |
| |
119 minutes and
Reliability SAIDI PIM penalty $79,000 |
| | | |
|
Utility Consolidated Reliability: System Average Interruption Frequency Index (SAIFI)5 promotes system reliability for customers
|
| |
5%
|
| |
1.34 interruptions
and Reliability SAIFI PIM penalty $340,000 or less |
| |
1.21 interruptions
and no Reliability SAIFI PIM penalty |
| |
1.08 interruptions
and no Reliability SAIFI PIM penalty |
| |
1.06 interruptions
and no Reliability SAIFI PIM penalty |
| | | |
|
Utility Consolidated Safety: Total Cases Incident Rate (TCIR)6 rewards improvements in workplace safety, promoting employee well-being and reducing expense
|
| |
7.5%
|
| |
1.37 TCIR
|
| |
1.03 TCIR
|
| |
0.92 TCIR
|
| |
1.61 TCIR
|
| | | |
|
Utility Consolidated Safety: Severity Rate6 rewards improvements in workplace safety, promoting employee well-being and reducing expense
|
| |
7.5%
|
| |
18.53
|
| |
16.00
|
| |
13.46
|
| |
37.11
|
| |
74%
|
|
|
Utility Consolidated Human Capital Management (HCM): Strategic Workforce Planning7 rewards strategic workforce supply and demand assessment and development of effective people strategies
|
| |
5%
|
| |
Create strategic
workforce plans for 1 strategic initiative and for each of the 4 strategic workforce plans that were created in 2021, complete 70% of the action items that have target completion dates in 2022 |
| |
Create strategic
workforce plans for 2 strategic initiatives and for each of the 4 strategic workforce plans that were created in 2021, complete 80% of the action items that have target completion dates in 2022 |
| |
Create strategic
workforce plans for 3 strategic initiatives and for each of the 4 strategic workforce plans that were created in 2021, complete 90% of the action items that have target completion dates in 2022 |
| |
Maximum
|
| | | |
|
Utility Consolidated Human Capital Management (HCM): Diversity, Equity & Inclusion (DEI)7 promotes awareness and removal of barriers to equity and inclusion in the workplace
|
| |
5%
|
| |
80% of employees
participate in a minimum of one qualifying DEI activity |
| |
90% of employees
participate in a minimum of one qualifying DEI activity |
| |
99% of employees
participate in a minimum of one qualifying DEI activity |
| |
100% of employees
participate in a minimum of one qualifying DEI activity |
| | | |
|
Utility Decarbonization: Renewable Portfolio Standard (RPS)8 promotes increased sales of energy derived from renewable sources
|
| |
5%
|
| |
39.0%
|
| |
40.0%
|
| |
41.0%
|
| |
39.1%
|
| | | |
|
Utility Decarbonization: Electrification8 promotes the decarbonization of Hawai‘i through improved electric vehicle charging infrastructure
|
| |
5%
|
| |
1. Launch eBus
Make Ready Pilot within 30 days of PUC acceptance or approval of Pilot Final Program Design Report and 2. Commission 7 new fast chargers at 4 new sites |
| |
Achieve the
Threshold, plus: 1. Complete design and construction of infrastructure to support 2 additional new fast chargers at 2 existing sites |
| |
Achieve the Target,
plus: 1. Complete design and construction of infrastructure to support 2 additional new fast chargers at 2 existing sites and
2. If approved by
PUC, launch Commercial Make Ready Pilot within 30 days of final authority to do so |
| |
Threshold
|
| | | |
| Teranishi* | | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
|
ASB ROA3
|
| |
40%
|
| |
0.66%
|
| |
0.76%
|
| |
0.86%
|
| |
0.82%
|
| |
180%
|
|
|
ASB Adjusted Net Income1 focuses on fundamental earnings, which correlates to shareholder value
|
| |
60%
|
| |
$62M
|
| |
$69M
|
| |
$76M
|
| |
$75.6M
|
|
|
Year ended December 31, 2022
|
| |
HEI CONSOLIDATED
|
| |
ASB
|
| ||||||
| (in millions) | | | | | | | | | | | | | |
|
GAAP net income (as reported)
|
| | |
$
|
241.1
|
| | | |
$
|
80.0
|
| |
| Excluding special items (after-tax): | | | | | | | | | | | | | |
|
Reversal of allowance for credit losses related to the pandemic1,2
|
| | | | (3.9) | | | | | | (3.9) | | |
|
Branch lease termination costs (gain on sale of branches)1
|
| | | | (0.5) | | | | | | (0.5) | | |
|
Gain on sale of an investment by Pacific Current3
|
| | | | (6.2) | | | | | | — | | |
|
Non-GAAP (adjusted) net income for 2022 EICP purposes
|
| | |
$
|
230.6
|
| | | |
$
|
75.6
|
| |
|
Name
|
| |
Target
Opportunity (% of base salary) |
| | | | | | | |
Base
Salary ($) |
| | | | | | | |
Target
Opportunity ($) |
| | | | | | | |
Total
Achieved as a % of Target Opportunity (%) |
| | | | | | | |
2022
Actual Annual Incentive Payout ($)1 |
| |||||||||||||||
| Scott W. H. Seu | | | | | 100 | | | | | | × | | | | | | 875,000 | | | | | | = | | | | | | 875,000 | | | | | | × | | | | | | 99 | | | | | | = | | | | | | 869,129 | | |
| Paul K. Ito | | | | | 45 | | | | | | × | | | | | | 313,425 | | | | | | = | | | | | | 141,041 | | | | | | × | | | | | | 99 | | | | | | = | | | | | | 140,054 | | |
| Kurt K. Murao | | | | | 60 | | | | | | × | | | | | | 428,667 | | | | | | = | | | | | | 257,200 | | | | | | × | | | | | | 99 | | | | | | = | | | | | | 255,475 | | |
| Shelee M. T. Kimura | | | | | 75 | | | | | | × | | | | | | 450,000 | | | | | | = | | | | | | 337,500 | | | | | | × | | | | | | 74 | | | | | | = | | | | | | 249,909 | | |
| Ann C. Teranishi | | | | | 70 | | | | | | × | | | | | | 605,000 | | | | | | = | | | | | | 423,500 | | | | | | × | | | | | | 180 | | | | | | = | | | | | | 764,357 | | |
| Gregory C. Hazelton2 | | | | | 70 | | | | | | × | | | | | | 278,733 | | | | | | = | | | | | | 195,113 | | | | | | × | | | | | | 99 | | | | | | = | | | | | | 193,721 | | |
|
2022-24 Long-Term Incentive
Performance Metrics & Why We Use Them |
| |
Weighting
|
|
| Seu, Ito, Murao and Hazelton | | |
|
|
|
HEI 3-year Average Annual EPS Growth1 promotes shareholder value by focusing on EPS growth over a three-year period.
|
| |
30%
|
|
|
HEI 3-year Average ROACE2 promotes profitability based on net income returned as a % of average common equity.
|
| |
30%
|
|
|
Utility Carbon Emissions (CO2e) Reduction3 promotes reduction of carbon dioxide equivalent emissions from power generation.
|
| |
20%
|
|
| HEI Relative TSR4 compares the value created for HEI shareholders to that created by other investor-owned electric companies (EEI Index). | | |
20%
|
|
| Kimura | | |
|
|
| Utility 3-year Average Annual Net Income Growth5 promotes shareholder value by focusing on net income growth based on the years included in the plan. | | |
30%
|
|
| Utility 3-year Average ROACE6 promotes profitability based on net income returned as a % of average common equity. | | |
30%
|
|
|
Utility Carbon Emissions (CO2e) Reduction3 promotes reduction of carbon dioxide equivalent emissions from power generation.
|
| |
20%
|
|
| HEI Relative TSR4 compares the value created for HEI shareholders to that created by the other investor-owned electric companies in the EEI Index. | | |
20%
|
|
| Teranishi | | |
|
|
|
ASB 3-year Average Return on Equity7 promotes profitability based on net income returned as a % of average common equity.
|
| |
40%
|
|
| ASB Strategic Plan Initiatives: % of Self Service Deposits (Consumer)8 measures the deposit transaction volumes through three distinct channels: branches, ATMs and mobile devices. | | |
20%
|
|
| ASB Strategic Plan Initiatives: Net Promoter Score9 measures how likely customers are to promote ASB’s brand, product or company to their peers. | | |
20%
|
|
|
HEI Relative TSR4 compares the value created for HEI shareholders to that created by the EEI Index.
|
| |
20%
|
|
|
Name
|
| |
2020-22 Target Opportunity
(as % of Base Salary) |
| |
2020-22 Target Opportunity
(in shares) |
| ||||||
| Scott W. H. Seu | | | | | 80% | | | | | | 6,975 | | |
| Paul K. Ito | | | | | 45% | | | | | | 2,785 | | |
| Kurt K. Murao | | | | | 60% | | | | | | 4,387 | | |
| Shelee M. T. Kimura | | | | | 45% | | | | | | 2,587 | | |
| Ann C. Teranishi | | | | | 30% | | | | | | 2,054 | | |
| Gregory C. Hazelton | | | | | 80% | | | | | | 9,036 | | |
|
2020-22 Long-Term Incentive
Performance Metrics & Why We Use Them |
| |
Weighting
|
| |
Goals
|
| |
Result
|
| |
Total
Achieved as a % of Target Opportunity |
| ||||||
|
Threshold
|
| |
Target
|
| |
Maximum
|
| ||||||||||||
| Ito, Murao and Hazelton | | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
| HEI 3-year Average Annual EPS Growth1 promotes shareholder value by focusing on EPS growth over a three-year period. | | |
30%
|
| |
4.0%
|
| |
5.0%
|
| |
6.0%
|
| |
1.7%
|
| | | |
| HEI ROACE2 measures profitability based on net income returned as a % of average common equity. | | |
30%
|
| |
9.0%
|
| |
9.5%
|
| |
10.0%
|
| |
9.7%
|
| |
61%
|
|
| Utility Renewable Portfolio Standards3 measures the Utility’s progress towards meeting the State of Hawai‘i’s RPS targets for increased production of energy from renewable sources. | | |
20%
|
| |
32.0%
|
| |
40.0%
|
| |
50.0%
|
| |
39.1%
|
| | | |
| HEI Relative TSR4 compares the value created for HEI shareholders to that created by other investor-owned electric companies (EEI Index). | | |
20%
|
| |
30th
percentile |
| |
50th
percentile |
| |
70th
percentile |
| |
29th
percentile |
| | | |
|
Seu* and Kimura
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
| Utility 3-year Average Annual Net Income Growth5 promotes shareholder value by focusing on net income growth based on the years included in the plan. | | |
30%
|
| |
4.5%
|
| |
5.5%
|
| |
7.0%
|
| |
6.4%
|
| | | |
| Utility 3-year ROACE as a % of Allowed Return6 measures the performance of the Utility and its subsidiaries in attaining the level of ROACE they are permitted to earn by their regulator. The focus on ROACE encourages improved return compared to the cost of capital. | | |
30%
|
| |
83%
|
| |
85%
|
| |
88%
|
| |
85%
|
| |
97%
|
|
| Utility Renewable Portfolio Standards3 measures the Utility’s progress towards meeting the State of Hawai‘i’s RPS targets for increased production of energy from renewable sources. | | |
20%
|
| |
32.0%
|
| |
40.0%
|
| |
50.0%
|
| |
39.1%
|
| | | |
| HEI Relative TSR4 compares the value created for HEI shareholders to that created by the EEI Index. | | |
20%
|
| |
30th
percentile |
| |
50th
percentile |
| |
70th
percentile |
| |
29th
percentile |
| | | |
| Teranishi | | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
| ASB Return on Equity7 measures profitability based on net income returned as a % of average common equity based on the average of the last two years of the plan. | | |
40%
|
| |
11.30%
|
| |
12.60%
|
| |
13.95%
|
| |
11.80%
|
| | | |
| ASB Efficiency Ratio8 promotes expense control based on the average of the last two years of the plan. | | |
40%
|
| |
60.5%
|
| |
58.5%
|
| |
55.5%
|
| |
66.1%
|
| |
28%
|
|
| HEI Relative TSR4 compares the value created for HEI shareholders to that created by the EEI Index. | | |
20%
|
| |
30th
percentile |
| |
50th
percentile |
| |
70th
percentile |
| |
29th
percentile |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
2020-22 Incentive Payout1
|
| |||||||||
|
Name
|
| |
Target
Opportunity (in shares) |
| | | | | | | |
Total
Achieved as a % of Target Opportunity (%) |
| | | | | | | |
(shares)
|
| |
(dividend
equivalents paid as a share number) |
| ||||||||||||
| Scott W. H. Seu | | | | | 6,975 | | | | | | × | | | | | | 97 | | | | | | = | | | | | | 6,758 | | | | | | 716 | | |
| Paul K. Ito | | | | | 2,785 | | | | | | × | | | | | | 61 | | | | | | = | | | | | | 1,696 | | | | | | 180 | | |
| Kurt K. Murao | | | | | 4,387 | | | | | | × | | | | | | 61 | | | | | | = | | | | | | 2,671 | | | | | | 283 | | |
| Shelee M. T. Kimura | | | | | 2,587 | | | | | | × | | | | | | 97 | | | | | | = | | | | | | 2,507 | | | | | | 266 | | |
| Ann C. Teranishi | | | | | 2,054 | | | | | | × | | | | | | 28 | | | | | | = | | | | | | 569 | | | | | | 60 | | |
| Gregory C. Hazelton2 | | | | | 7,530 | | | | | | × | | | | | | 61 | | | | | | = | | | | | | 4,584 | | | | | | 486 | | |
|
Years ended December 31
|
| |
2022
|
| |
2021
|
| |
2020
|
| |
2019
|
| ||||||||||||
| ($ in millions, except per share amounts) | | | | | | | | | | | | | | | | | | | | | | | | | |
| HEI CONSOLIDATED NET INCOME | | | | | | | | | | | | | | | | | | | | | | | | | |
|
GAAP (as reported)
|
| | |
$
|
241.1
|
| | | |
$
|
246.2
|
| | | |
$
|
197.8
|
| | | |
$
|
217.9
|
| |
| Excluding special items (after-tax) for LTIP purposes: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Allowance (reversal of allowance) for credit losses related to the pandemic1, 2
|
| | | | (9.6) | | | | | | (16.8) | | | | | | 25.2 | | | | | | — | | |
|
Executive officer settlement1, 3
|
| | | | — | | | | | | 1.4 | | | | | | — | | | | | | — | | |
|
State Unemployment Tax assessment1,4
|
| | | | — | | | | | | (0.9) | | | | | | — | | | | | | — | | |
|
COVID-19 related expenses1, 5
|
| | | | — | | | | | | — | | | | | | 3.7 | | | | | | — | | |
|
Branch lease termination costs (gain on sale of branches)1
|
| | | | (0.1) | | | | | | — | | | | | | 0.6 | | | | | | — | | |
|
Gain from VISA stock sale, net1
|
| | | | — | | | | | | — | | | | | | (2.2) | | | | | | — | | |
|
Sale of former headquarters, net of campus transition costs1
|
| | | | — | | | | | | — | | | | | | — | | | | | | (5.6) | | |
|
Pension defeasement1, 6
|
| | | | (1.0) | | | | | | (1.1) | | | | | | (0.1) | | | | | | — | | |
|
Gain on sale of an investment by Pacific Current7
|
| | | | (6.2) | | | | | | — | | | | | | — | | | | | | — | | |
|
Non-GAAP (adjusted) net income for 2020-22 LTIP purposes
|
| | |
$
|
224.3
|
| | | |
$
|
228.8
|
| | | |
$
|
225.1
|
| | | |
$
|
212.3
|
| |
| HEI CONSOLIDATED BASIC EARNINGS PER SHARE | | | | | | | | | | | | | | | | | | | | | | | | | |
| Based on GAAP | | | | $ | 2.20 | | | | | $ | 2.25 | | | | | $ | 1.81 | | | | | $ | 2.00 | | |
|
Based on non-GAAP (adjusted) for 2020-22 LTIP purposes
|
| | |
|
2.05
|
| | | |
|
2.09
|
| | | |
|
2.06
|
| | | |
|
1.95
|
| |
| HEI CONSOLIDATED Return on Average Common Equity (%) | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Based on GAAP
|
| | |
|
10.5
|
| | | |
|
10.4
|
| | | |
|
8.6
|
| | | | | | | |
|
Based on non-GAAP (adjusted) for 2020-22 LTIP purposes
|
| | |
|
9.8
|
| | | |
|
9.7
|
| | | |
|
9.7
|
| | | | | | | |
|
Years ended December 31
|
| |
2022
|
| |
2021
|
| ||||||
| ($ in millions) | | | | | | | | | | | | | |
| ASB NET INCOME | | | | | | | | | | | | | |
|
GAAP (as reported)
|
| | |
$
|
80.0
|
| | | |
$
|
101.2
|
| |
| Excluding special items (after-tax) for LTIP purposes: | | | | | | | | | | | | | |
|
Allowance (reversal of allowance) for credit losses related to the pandemic1
|
| | | | (9.6) | | | | | | (16.8) | | |
|
Executive officer settlement2
|
| | | | — | | | | | | 1.4 | | |
|
State Unemployment Tax assessment3
|
| | | | — | | | | | | (0.9) | | |
|
Branch lease termination costs (gain on sale of branches)
|
| | | | (0.1) | | | | | | — | | |
|
Pension defeasement4
|
| | | | (1.0) | | | | | | (1.1) | | |
| Non-GAAP (adjusted) net income for 2020-22 LTIP purposes | | | | $ | 69.3 | | | | | $ | 83.8 | | |
| ASB Return on Average Common Equity (%) | | | | | | | | | | | | | |
|
Based on GAAP
|
| | |
|
14.1
|
| | | |
|
13.8
|
| |
| Based on non-GAAP (adjusted) for 2020-22 LTIP purposes | | | | | 12.2 | | | | | | 11.4 | | |
| ASB EFFICIENCY RATIO (%) | | | | | | | | | | | | | |
|
Based on GAAP
|
| | |
|
66.3
|
| | | |
|
65.3
|
| |
|
Adjustment for pre-tax ASB items above
|
| | |
|
0.3
|
| | | |
|
0.3
|
| |
| Based on non-GAAP (adjusted) for 2020-22 LTIP purposes | | | | | 66.6 | | | | | | 65.6 | | |
|
Position
|
| |
Value of Stock to be Owned
|
|
| HEI President & CEO | | | 5x base salary | |
| Other Named Executive Officers | | | 2x base salary | |
|
Name and 2022
Principal Positions |
| |
Year
|
| |
Salary
($)1 |
| |
Bonus
($)2 |
| |
Stock
Awards ($)3 |
| |
Nonequity
Incentive Plan Compensation ($)4 |
| |
Change in
Pension Value and Nonqualified Deferred Compensation Earnings ($)5 |
| |
All Other
Compensation ($)6 |
| |
Total
Without Change in Pension Value ($)7 |
| |
Total
($) |
| |||||||||||||||||||||||||||
|
Scott W. H. Seu
HEI President & CEO ASB Chair |
| | | | 2022 | | | | | | 875,000 | | | | | | — | | | | | | 1,830,874 | | | | | | 869,129 | | | | | | 236,512 | | | | | | — | | | | | | 3,575,003 | | | | | | 3,811,515 | | |
| | | 2021 | | | | | | 506,667 | | | | | | — | | | | | | 821,405 | | | | | | 599,588 | | | | | | 1,002,005 | | | | | | — | | | | | | 1,927,660 | | | | | | 2,929,665 | | | |||
| | | 2020 | | | | | | 419,750 | | | | | | — | | | | | | 651,282 | | | | | | 394,587 | | | | | | 999,547 | | | | | | — | | | | | | 1,465,619 | | | | | | 2,465,166 | | | |||
|
Paul K. Ito
HEI Executive Vice President, CFO & Treasurer* |
| | | | 2022 | | | | | | 313,425 | | | | | | 108,750 | | | | | | 244,373 | | | | | | 140,054 | | | | | | — | | | | | | 9,150 | | | | | | 815,752 | | | | | | 815,752 | | |
|
Kurt K. Murao
HEI Executive Vice President, General Counsel, Chief Administrative Officer and Corporate Secretary |
| | | | 2022 | | | | | | 428,667 | | | | | | — | | | | | | 467,085 | | | | | | 255,475 | | | | | | — | | | | | | 15,281 | | | | | | 1,166,508 | | | | | | 1,166,508 | | |
| | | 2021 | | | | | | 402,000 | | | | | | — | | | | | | 499,262 | | | | | | 443,638 | | | | | | 252,374 | | | | | | 14,873 | | | | | | 1,359,773 | | | | | | 1,612,147 | | | |||
| | | 2020 | | | | | | 352,000 | | | | | | — | | | | | | 369,992 | | | | | | 244,954 | | | | | | 315,725 | | | | | | — | | | | | | 966,946 | | | | | | 1,282,671 | | | |||
|
Shelee M. T. Kimura
Hawaiian Electric President & CEO |
| | | | 2022 | | | | | | 450,000 | | | | | | — | | | | | | 814,267 | | | | | | 249,909 | | | | | | — | | | | | | — | | | | | | 1,514,176 | | | | | | 1,514,176 | | |
|
Ann C. Teranishi
ASB President & CEO |
| | | | 2022 | | | | | | 605,000 | | | | | | — | | | | | | 600,723 | | | | | | 764,357 | | | | | | — | | | | | | 56,774 | | | | | | 2,026,854 | | | | | | 2,026,854 | | |
| | | 2021 | | | | | | 473,707 | | | | | | — | | | | | | 626,520 | | | | | | 600,098 | | | | | | — | | | | | | 23,996 | | | | | | 1,724,321 | | | | | | 1,724,321 | | | |||
|
Gregory C. Hazelton
Former HEI Executive Vice President and CFO |
| | | | 2022 | | | | | | 278,733 | | | | | | — | | | | | | 757,904 | | | | | | 193,721 | | | | | | — | | | | | | 15,126 | | | | | | 1,245,484 | | | | | | 1,245,484 | | |
| | | 2021 | | | | | | 546,400 | | | | | | — | | | | | | 1,100,746 | | | | | | 653,243 | | | | | | 116,175 | | | | | | 26,054 | | | | | | 2,326,443 | | | | | | 2,442,618 | | | |||
| | | 2020 | | | | | | 543,750 | | | | | | — | | | | | | 707,755 | | | | | | 412,830 | | | | | | 186,825 | | | | | | 26,328 | | | | | | 1,690,663 | | | | | | 1,877,488 | | |
|
Name
|
| |
Contributions to Defined
Contribution Plans ($)a |
| |
Other ($)b
|
| |
Total All
Other Compensation ($) |
| |||||||||
| Scott W. H. Seu | | | | | — | | | | | | — | | | | | | — | | |
|
Paul K. Ito
|
| | |
|
9,150
|
| | | |
|
—
|
| | | |
|
9,150
|
| |
|
Kurt K. Murao
|
| | |
|
—
|
| | | |
|
15,281
|
| | | |
|
15,281
|
| |
| Shelee M. T. Kimura | | | | | — | | | | | | — | | | | | | — | | |
|
Ann C. Teranishi
|
| | |
|
12,200
|
| | | |
|
44,574
|
| | | |
|
56,774
|
| |
|
Gregory C. Hazelton
|
| | |
|
6,128
|
| | | |
|
8,998
|
| | | |
|
15,126
|
| |
|
Name
|
| |
Grant Date
|
| |
Estimated Future Payouts
Under Nonequity Incentive Plan Awards1 |
| |
Estimated Future Payouts
Under Equity Incentive Plan Awards2 |
| |
All Other
Stock Awards: Number of Shares of Stock or Units (#)3 |
| |
Grant Date
Fair Value of Stock Awards ($)4 |
| ||||||||||||||||||||||||||||||||||||
|
Threshold
($) |
| |
Target
($) |
| |
Maximum
($) |
| |
Threshold
(#) |
| |
Target
(#) |
| |
Maximum
(#) |
| ||||||||||||||||||||||||||||||||||||
|
Scott W. H. Seu
|
| |
2/11/22 EICP
|
| | | | 437,500 | | | | | | 875,000 | | | | | | 1,750,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
2/11/22 LTIP
|
| | | | — | | | | | | — | | | | | | — | | | | | | 14,834 | | | | | | 29,668 | | | | | | 59,336 | | | | | | — | | | | | | 1,305,872 | | | |||
|
2/11/22 RSU
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,715 | | | | | | 525,002 | | | |||
|
Paul K. Ito
|
| |
2/11/22 EICP
|
| | | | 70,521 | | | | | | 141,041 | | | | | | 282,083 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
2/11/22 LTIP
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,708 | | | | | | 3,416 | | | | | | 6,832 | | | | | | — | | | | | | 150,356 | | | |||
|
2/11/22 RSU
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,277 | | | | | | 94,017 | | | |||
|
Kurt K. Murao
|
| |
2/11/22 EICP
|
| | | | 128,600 | | | | | | 257,200 | | | | | | 514,400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
2/11/22 LTIP
|
| | | | — | | | | | | — | | | | | | — | | | | | | 3,115 | | | | | | 6,229 | | | | | | 12,458 | | | | | | — | | | | | | 274,178 | | | |||
|
2/11/22 RSU
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,672 | | | | | | 192,907 | | | |||
|
Shelee M. T. Kimura
|
| |
2/11/22 EICP
|
| | | | 168,750 | | | | | | 337,500 | | | | | | 675,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
2/11/22 LTIP
|
| | | | — | | | | | | — | | | | | | — | | | | | | 4,904 | | | | | | 9,809 | | | | | | 19,617 | | | | | | — | | | | | | 431,756 | | | |||
|
2/11/22 RSU
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,264 | | | | | | 382,511 | | | |||
|
Ann C. Teranishi
|
| |
2/11/22 EICP
|
| | | | 211,750 | | | | | | 423,500 | | | | | | 847,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
2/11/22 LTIP
|
| | | | — | | | | | | — | | | | | | — | | | | | | 4,762 | | | | | | 9,524 | | | | | | 19,048 | | | | | | — | | | | | | 419,212 | | | |||
|
2/11/22 RSU
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,396 | | | | | | 181,511 | | | |||
|
Gregory C. Hazelton
|
| |
2/11/22 EICP
|
| | | | 196,082 | | | | | | 392,163 | | | | | | 784,326 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
2/11/22 LTIP
|
| | | | — | | | | | | — | | | | | | — | | | | | | 5,427 | | | | | | 10,855 | | | | | | 21,709 | | | | | | — | | | | | | 477,793 | | | |||
|
2/11/22 RSU
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,784 | | | | | | 280,111 | | |
| | | |
Stock Awards
|
| |||||||||||||||||||||||||||
| | | |
Grant
Year |
| |
Shares or Units of
Stock That Have Not Vested1 |
| |
Equity Incentive Plan Awards
|
| |||||||||||||||||||||
| | | |
Number of
Unearned Shares, Units or Other Rights That Have Not Vested (#)3 |
| |
Market or
Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)2 |
| ||||||||||||||||||||||||
|
Name
|
| |
Number
(#) |
| |
Market
Value ($)2 |
| ||||||||||||||||||||||||
|
Scott W. H. Seu
|
| | | | 2019 | | | | | | 638 | | | | | | 26,700 | | | | | | — | | | | | | — | | |
| | | 2020 | | | | | | 3,270 | | | | | | 136,850 | | | | | | — | | | | | | — | | | |||
| | | 2021 | | | | | | 5,964 | | | | | | 249,593 | | | | | | 14,613 | | | | | | 611,554 | | | |||
| | | 2022 | | | | | | 12,715 | | | | | | 532,123 | | | | | | 29,668 | | | | | | 1,241,606 | | | |||
| | | Total | | | | | | 22,587 | | | | | | 945,266 | | | | | | 44,281 | | | | | | 1,853,160 | | | |||
|
Paul K. Ito
|
| | | | 2019 | | | | | | 562 | | | | | | 23,520 | | | | | | — | | | | | | — | | |
| | | 2020 | | | | | | 928 | | | | | | 38,837 | | | | | | — | | | | | | — | | | |||
| | | 2021 | | | | | | 1,769 | | | | | | 74,033 | | | | | | 6,015 | | | | | | 251,728 | | | |||
| | | 2022 | | | | | | 2,277 | | | | | | 95,292 | | | | | | 3,416 | | | | | | 142,960 | | | |||
| | | Total | | | | | | 5,536 | | | | | | 231,682 | | | | | | 9,431 | | | | | | 394,688 | | | |||
|
Kurt K. Murao
|
| | | | 2019 | | | | | | 611 | | | | | | 25,570 | | | | | | — | | | | | | — | | |
| | | 2020 | | | | | | 1,645 | | | | | | 68,843 | | | | | | — | | | | | | — | | | |||
| | | 2021 | | | | | | 3,549 | | | | | | 148,526 | | | | | | 8,991 | | | | | | 376,273 | | | |||
| | | 2022 | | | | | | 4,672 | | | | | | 195,523 | | | | | | 6,229 | | | | | | 260,684 | | | |||
| | | Total | | | | | | 10,477 | | | | | | 438,462 | | | | | | 15,220 | | | | | | 636,957 | | | |||
|
Shelee M. T. Kimura
|
| | | | 2019 | | | | | | 622 | | | | | | 26,031 | | | | | | — | | | | | | — | | |
| | | 2020 | | | | | | 1,006 | | | | | | 42,101 | | | | | | — | | | | | | — | | | |||
| | | 2021 | | | | | | 2,005 | | | | | | 83,909 | | | | | | 5,242 | | | | | | 219,378 | | | |||
| | | 2022 | | | | | | 9,264 | | | | | | 387,698 | | | | | | 9,809 | | | | | | 410,507 | | | |||
| | | Total | | | | | | 12,897 | | | | | | 539,739 | | | | | | 15,051 | | | | | | 629,885 | | | |||
|
Ann C. Teranishi
|
| | | | 2019 | | | | | | 212 | | | | | | 8,872 | | | | | | — | | | | | | — | | |
| | | 2020 | | | | | | 684 | | | | | | 28,625 | | | | | | — | | | | | | — | | | |||
| | | 2021 | | | | | | 4,741 | | | | | | 198,411 | | | | | | 4,259 | | | | | | 178,239 | | | |||
| | | 2022 | | | | | | 4,396 | | | | | | 183,973 | | | | | | 4,762 | | | | | | 199,290 | | | |||
| | | Total | | | | | | 10,033 | | | | | | 419,881 | | | | | | 9,021 | | | | | | 377,529 | | | |||
|
Gregory C. Hazelton
|
| | | | 2019 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | 2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||
| | | 2021 | | | | | | — | | | | | | — | | | | | | 9,568 | | | | | | 400,421 | | | |||
| | | 2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||
| | | Total | | | | | | — | | | | | | — | | | | | | 9,568 | | | | | | 400,421 | | |
| | | |
Stock Awards
|
| |||||||||
|
Name
|
| |
Number of Shares
Acquired on Vesting (#) |
| |
Value Realized
on Vesting ($) |
| ||||||
|
Scott W. H. Seu
|
| | | | 5,9631 | | | | | | 242,277 | | |
| | | 7,4742 | | | | | | 312,7873 | | | |||
|
Paul K. Ito
|
| | | | 2,7141 | | | | | | 110,270 | | |
| | | 1,8762 | | | | | | 78,5113 | | | |||
|
Kurt K. Murao
|
| | | | 4,0921 | | | | | | 166,257 | | |
| | | 2,9542 | | | | | | 123,6253 | | | |||
|
Shelee M. T. Kimura
|
| | | | 2,6901 | | | | | | 109,294 | | |
| | | 2,7732 | | | | | | 116,0503 | | | |||
|
Ann C. Teranishi
|
| | | | 3,2411 | | | | | | 129,293 | | |
| | | 6292 | | | | | | 26,3243 | | | |||
|
Gregory C. Hazelton
|
| | | | 13,6901 | | | | | | 554,006 | | |
| | | 5,0702 | | | | | | 212,1803 | | |
|
Name
|
| |
Number of Shares
Acquired on Vesting |
| |
Compounded
Dividend Equivalents |
| |
Total Shares
Acquired on Vesting |
| |||||||||
| Scott W. H Seu | | | | | 5,629 | | | | | | 334 | | | | | | 5,963 | | |
| Paul K. Ito | | | | | 2,509 | | | | | | 205 | | | | | | 2,714 | | |
| Kurt K. Murao | | | | | 3,826 | | | | | | 266 | | | | | | 4,092 | | |
| Shelee M. T. Kimura | | | | | 2,503 | | | | | | 187 | | | | | | 2,690 | | |
| Ann C. Teranishi | | | | | 3,086 | | | | | | 155 | | | | | | 3,241 | | |
| Gregory C. Hazelton | | | | | 12,825 | | | | | | 865 | | | | | | 13,690 | | |
|
Name
|
| |
Number of Shares
Acquired on Vesting |
| |
Compounded
Dividend Equivalents |
| |
Total Shares
Acquired on Vesting |
| |||||||||
| Scott W. H. Seu | | | | | 6,758 | | | | | | 716 | | | | | | 7,474 | | |
| Paul K. Ito | | | | | 1,696 | | | | | | 180 | | | | | | 1,876 | | |
| Kurt K. Murao | | | | | 2,671 | | | | | | 283 | | | | | | 2,954 | | |
| Shelee M. T. Kimura | | | | | 2,507 | | | | | | 266 | | | | | | 2,773 | | |
| Ann C. Teranishi | | | | | 569 | | | | | | 60 | | | | | | 629 | | |
| Gregory C. Hazelton | | | | | 4,584 | | | | | | 486 | | | | | | 5,070 | | |
|
Name
|
| |
Plan Name
|
| |
Number of
Years of Credited Service (#) |
| |
Present Value of
Accumulated Benefit ($)4 |
| |
Payments
During the Last Fiscal Year ($) |
| |||||||||
|
Scott W. H. Seu
|
| |
HEI Retirement Plan1
|
| | | | 29.3 | | | | | | 2,227,131 | | | | | | — | | |
| HEI Excess Pay Plan2 | | | | | 29.3 | | | | | | 2,171,060 | | | | | | — | | | |||
| HEI Executive Death Benefit3 | | | | | — | | | | | | 60,301 | | | | | | — | | | |||
|
Paul K. Ito
|
| |
HEI Retirement Plan1
|
| | | | 4.9 | | | | | | 141,615 | | | | | | — | | |
| HEI Excess Pay Plan2 | | | | | 4.9 | | | | | | 5,205 | | | | | | — | | | |||
|
Kurt K. Murao
|
| |
HEI Retirement Plan1
|
| | | | 11.8 | | | | | | 752,214 | | | | | | — | | |
| HEI Excess Pay Plan2 | | | | | 11.8 | | | | | | 258,773 | | | | | | — | | | |||
|
Shelee M. T. Kimura
|
| |
HEI Retirement Plan1
|
| | | | 18.3 | | | | | | 976,416 | | | | | | — | | |
| HEI Excess Pay Plan2 | | | | | 18.3 | | | | | | 165,741 | | | | | | — | | | |||
| Ann C. Teranishi5 | | | — | | | | | — | | | | | | — | | | | | | — | | |
|
Gregory C. Hazelton
|
| |
HEI Retirement Plan1
|
| | | | 7.6 | | | | | | 295,470 | | | | | | — | | |
| HEI Excess Pay Plan2 | | | | | 7.6 | | | | | | 262,974 | | | | | | — | | |
|
Name
|
| |
Executive
Contributions in Last FY ($)1 |
| |
Registrant
Contributions in Last FY ($) |
| |
Aggregate
Earnings/(Losses) in Last FY ($) |
| |
Aggregate
Withdrawals/ Distributions ($) |
| |
Aggregate
Balance at Last FYE ($)2 |
| |||||||||||||||
| Scott W. H. Seu | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| Paul K. Ito | | | | | 124,379 | | | | | | — | | | | | | (78,909) | | | | | | — | | | | | | 261,736 | | |
| Kurt K. Murao | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| Shelee M. T. Kimura | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| Ann C. Teranishi | | | | | — | | | | | | — | | | | | | 11 | | | | | | — | | | | | | 937 | | |
| Gregory C. Hazelton | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Name/
Benefit Plan or Program |
| |
Retirement
on 12/31/22 ($)1 |
| |
Termination due
to death or disability on 12/31/22 ($)2 |
| |
Voluntary termination,
termination for and without cause on 12/31/22 ($)3 |
| |
Termination after
change in control on 12/31/22 ($)4 |
| ||||||||||||
| Scott W. H. Seu | | | | | | | | | | | | | | | | | | | | | | | | | |
| Executive Incentive Compensation Plan5 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| Long-Term Incentive Plan6 | | | | | 863,784 | | | | | | 863,784 | | | | | | — | | | | | | — | | |
| Restricted Stock Units7 | | | | | 387,801 | | | | | | 387,801 | | | | | | — | | | | | | — | | |
| Change-in-Control Agreement4 | | | | | — | | | | | | — | | | | | | — | | | | | | 2,167,325 | | |
| TOTAL | | | | | 1,251,585 | | | | | | 1,251,585 | | | | | | — | | | | | | 2,167,325 | | |
| Paul K. Ito | | | | | | | | | | | | | | | | | | | | | | | | | |
| Executive Incentive Compensation Plan5 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| Long-Term Incentive Plan6 | | | | | — | | | | | | 228,669 | | | | | | — | | | | | | 416,917 | | |
| Restricted Stock Units7 | | | | | — | | | | | | 110,656 | | | | | | — | | | | | | 247,417 | | |
| Change-in-Control Agreement4 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| TOTAL | | | | | — | | | | | | 339,325 | | | | | | — | | | | | | 664,334 | | |
| Kurt K. Murao | | | | | | | | | | | | | | | | | | | | | | | | | |
| Executive Incentive Compensation Plan5 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| Long-Term Incentive Plan6 | | | | | — | | | | | | 358,027 | | | | | | — | | | | | | — | | |
| Restricted Stock Units7 | | | | | — | | | | | | 196,200 | | | | | | — | | | | | | — | | |
| Change-in-Control Agreement4 | | | | | — | | | | | | — | | | | | | — | | | | | | 2,225,134 | | |
| TOTAL | | | | | — | | | | | | 554,227 | | | | | | — | | | | | | 2,225,134 | | |
| Shelee M. T. Kimura | | | | | | | | | | | | | | | | | | | | | | | | | |
| Executive Incentive Compensation Plan5 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| Long-Term Incentive Plan6 | | | | | — | | | | | | 297,805 | | | | | | — | | | | | | — | | |
| Restricted Stock Units7 | | | | | — | | | | | | 212,288 | | | | | | — | | | | | | — | | |
| Change-in-Control Agreement4 | | | | | — | | | | | | — | | | | | | — | | | | | | 1,818,886 | | |
| TOTAL | | | | | — | | | | | | 510,093 | | | | | | — | | | | | | 1,818,886 | | |
| Ann C. Teranishi | | | | | | | | | | | | | | | | | | | | | | | | | |
| Executive Incentive Compensation Plan5 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| Long-Term Incentive Plan6 | | | | | — | | | | | | 375,310 | | | | | | — | | | | | | — | | |
| Restricted Stock Units7 | | | | | — | | | | | | 167,304 | | | | | | — | | | | | | — | | |
| Change-in-Control Agreement4 | | | | | — | | | | | | — | | | | | | — | | | | | | 1,996,500 | | |
| TOTAL | | | | | — | | | | | | 542,614 | | | | | | — | | | | | | 1,996,500 | | |
| | | |
President &
CEO |
| |
Median
Employee |
| ||||||
| Salary | | | | $ | 875,000 | | | | | $ | 115,383 | | |
| Overtime Pay | | | | | — | | | | | | — | | |
| Stock Awards | | | | | 1,830,874 | | | | | | — | | |
| Nonequity Incentive Plan Compensation | | | | | 869,129 | | | | | | — | | |
| All Other Compensation | | | | | — | | | | | | 3,457 | | |
| Change in Pension Value1 | | | | | 236,512 | | | | | | — | | |
| TOTAL | | | | $ | 3,811,515 | | | | | $ | 118,840 | | |
|
CEO Pay to Median Employee Pay Ratio
|
| | |
|
32:1
|
| | | | | | | |
| Year | | | Summary Compensation Table Total for PEO1 | | | Compensation Actually Paid2 to PEO | | | Average Summary Compensation Table Total for Non-PEO Named Executive Officers3 | | | Average Compensation Actually Paid2 to Non-PEO Named Executive Officers | | | Value of Initial Fixed $100 Investment Based On: | | | Net Income (in thousands) | | | HEI Consolidated Adjusted Net Income5 (in thousands) | | |||||||||||||||||||||||||||
| Total Shareholder Return | | | Peer Group4 Total Shareholder Return | | |||||||||||||||||||||||||||||||||||||||||||||
| (a) | | | (b) | | | (c) | | | (d) | | | (e) | | | (f) | | | (g) | | | (h) | | | (i) | | ||||||||||||||||||||||||
| 2022 | | | | $ | 3,811,515 | | | | | $ | 4,046,729 | | | | | $ | 1,353,755 | | | | | $ | 1,241,936 | | | | | $ | 99 | | | | | $ | 117 | | | | | $ | 241,138 | | | | | $ | 230,562 | | |
| 2021 | | | | $ | 5,933,523 | | | | | $ | 7,901,297 | | | | | $ | 3,002,679 | | | | | $ | 2,673,496 | | | | | $ | 95 | | | | | $ | 116 | | | | | $ | 246,166 | | | | | $ | 229,909 | | |
| 2020 | | | | $ | 5,108,212 | | | | | $ | 315,826 | | | | | $ | 1,904,441 | | | | | $ | 794,294 | | | | | $ | 78 | | | | | $ | 99 | | | | | $ | 197,824 | | | | | $ | 225,181 | | |
| | | | PEO | | | Average Non-PEO Named Executive Officers | | ||||||||||||||||||||||||||||||
| | | | 2020 | | | 2021 | | | 2022 | | | 2020 | | | 2021 | | | 2022 | | ||||||||||||||||||
| Summary Compensation Table Total | | | | $ | 5,108,212 | | | | | $ | 5,933,523 | | | | | $ | 3,811,515 | | | | | $ | 1,904,441 | | | | | $ | 3,002,679 | | | | | $ | 1,353,755 | | |
| Pension adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| SCT reversal1 | | | | | (576,610) | | | | | | — | | | | | | (236,512) | | | | | | (375,524) | | | | | | (274,111) | | | | | | — | | |
| Service cost2 | | | | | 73,183 | | | | | | 79,155 | | | | | | 309,997 | | | | | | 75,657 | | | | | | 81,404 | | | | | | 99,567 | | |
| Stock adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| SCT reversal3 | | | | | (2,378,882) | | | | | | (3,204,098) | | | | | | (1,830,874) | | | | | | (611,973) | | | | | | (817,776) | | | | | | (576,870) | | |
| New awards outstanding4 | | | | | 1,758,452 | | | | | | 4,141,353 | | | | | | 1,919,877 | | | | | | 409,890 | | | | | | 755,592 | | | | | | 445,932 | | |
| Change in value of prior year awards5 | | | | | (1,510,281) | | | | | | 457,298 | | | | | | 62,282 | | | | | | (297,021) | | | | | | 62,236 | | | | | | 52,989 | | |
| New awards vested during the year6 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,681 | | |
| Vested prior year awards7 | | | | | (2,158,248) | | | | | | 494,066 | | | | | | 10,444 | | | | | | (311,176) | | | | | | 16,297 | | | | | | (59,380) | | |
| Forfeitures8 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (152,825) | | | | | | (81,738) | | |
| Compensation Actually Paid | | | | $ | 315,826 | | | | | $ | 7,901,297 | | | | | $ | 4,046,729 | | | | | $ | 794,294 | | | | | $ | 2,673,496 | | | | | $ | 1,241,936 | | |
|
| HEI PEO1 | | | HEI NON-PEO NEOs2 | | | Utility NEO3 | | | ASB NEO4 | |
| HEI consolidated adjusted net income | | | HEI consolidated adjusted net income | | | HEI consolidated adjusted net income | | | HEI consolidated adjusted net income | |
| HEI 3-year average return on average common equity | | | HEI 3-year average return on average common equity | | | Utility consolidated net income | | | ASB adjusted net income | |
| HEI 3-year average annual EPS growth | | | HEI 3-year average annual EPS growth | | | Utility operating metrics | | | ASB 3-year average return on equity | |
| Utility decarbonization | | | Utility decarbonization | | | Utility decarbonization | | | ASB Return on Assets | |
| HEI relative TSR | | | HEI relative TSR | | | HEI relative TSR | | | HEI relative TSR | |
| | | | | | | Utility 3-year average annual return on average common equity | | | | |
| |
|
| |
FOR EVERY 1 YEAR
Your Board recommends that you vote FOR a frequency of every 1 year for the advisory vote on HEI’s executive compensation (as opposed to every 2 years or every 3 years or abstaining). |
| |
|
Name of Individual or Group
|
| |
Sole Voting or
Investment Power |
| |
Shared Voting or
Investment Power1 |
| |
Other Beneficial
Ownership2 |
| |
Restricted
Stock Units3 |
| |
Total
|
| |
Percent
of Class |
| ||||||||||||||||||
|
BlackRock, Inc.4
|
| | | | 10,211,814 | | | | | | | | | | | | | | | | | | | | | | | | 10,211,814 | | | | | | 9.33 | | |
|
The Vanguard Group, Inc.5
|
| | | | 12,419,665 | | | | | | 197,699 | | | | | | | | | | | | | | | | | | 12,617,364 | | | | | | 11.53 | | |
| Nonemployee directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Celeste A. Connors | | | | | 10,367 | | | | | | | | | | | | | | | | | | | | | | | | 10,367 | | | | | | * | | |
| Richard J. Dahl | | | | | 19,641 | | | | | | | | | | | | | | | | | | | | | | | | 19,641 | | | | | | * | | |
| Thomas B. Fargo | | | | | | | | | | | 30,621 | | | | | | | | | | | | | | | | | | 30,621 | | | | | | * | | |
| Elisia K. Flores | | | | | 9,525 | | | | | | | | | | | | | | | | | | | | | | | | 9,525 | | | | | | * | | |
| Peggy Y. Fowler | | | | | | | | | | | 48,875 | | | | | | | | | | | | | | | | | | 48,875 | | | | | | * | | |
| Micah A. Kāne | | | | | 17,408 | | | | | | | | | | | | | | | | | | | | | | | | 17,408 | | | | | | * | | |
| Michael J. Kennedy | | | | | 8,989 | | | | | | | | | | | | | | | | | | | | | | | | 8,989 | | | | | | * | | |
| Yoko Otani | | | | | 974 | | | | | | | | | | | | | | | | | | | | | | | | 974 | | | | | | * | | |
| Keith P. Russell | | | | | 33,447 | | | | | | | | | | | | | | | | | | | | | | | | 33,447 | | | | | | * | | |
| William James Scilacci, Jr. | | | | | 10,695 | | | | | | | | | | | | | | | | | | | | | | | | 10,695 | | | | | | * | | |
|
Employee director and Named Executive Officer
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Scott W. H. Seu | | | | | 15,468 | | | | | | | | | | | | 436 | | | | | | 12,536 | | | | | | 28,440 | | | | | | * | | |
| All other Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Gregory C. Hazelton | | | | | 12,440 | | | | | | | | | | | | | | | | | | — | | | | | | 12,440 | | | | | | * | | |
| Paul K. Ito | | | | | 6,929 | | | | | | | | | | | | | | | | | | 2,880 | | | | | | 9,809 | | | | | | * | | |
| Kurt K. Murao | | | | | 20,077 | | | | | | | | | | | | | | | | | | 6,138 | | | | | | 26,215 | | | | | | * | | |
| Ann. C. Teranishi | | | | | 7,674 | | | | | | 43 | | | | | | | | | | | | 3,563 | | | | | | 11,280 | | | | | | * | | |
| Shelee M.T. Kimura | | | | | 11,532 | | | | | | 1,295 | | | | | | | | | | | | 5,527 | | | | | | 18,354 | | | | | | * | | |
|
All directors and executive officers as a group
(16 persons) |
| | | | 185,166 | | | | | | 80,834 | | | | | | 436 | | | | | | 30,644 | | | | | | 297,080 | | | |
| | | |
2021
|
| |
2022
|
| ||||||||||||||||||
| | | |
Fees
|
| |
%
|
| |
Fees
|
| |
%
|
| ||||||||||||
| Audit fees (principally consisted of fees associated with the audits of HEI, Hawaiian Electric, and ASB consolidated financial statements and internal control over financial reporting (Sarbanes-Oxley Act of 2002, Section 404) and quarterly reviews | | | | $ | 2,981,900 | | | | | | 93 | | | | | $ | 3,153,000 | | | | | | 97 | | |
| Audit-related fees (primarily consisted of fees associated with agreed upon procedures) | | | | | 177,000 | | | | | | 5 | | | | | | 97,000 | | | | | | 3 | | |
| Tax fees (consisted of tax return review) | | | | | 55,500 | | | | | | 2 | | | | | | — | | | | | | — | | |
| All other fees | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | $ | 3,214,400 | | | | | | 100 | | | | | $ | 3,250,000 | | | | | | 100 | | |
| |
|
| |
Your Audit & Risk Committee and Board recommend that you vote FOR the ratification of the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for 2023.
|
| |
|
|
| | |
|
| | |
|
|
|
TIME AND DATE
|
| | |
LOCATION
|
| | |
RECORD DATE
|
|
|
Friday, May 5, 2023 at
10:00 a.m., Hawai‘i Time |
| | |
The 2023 Annual Meeting will be conducted in-person
at American Savings Bank Campus, 300 N. Beretania St., 7th Floor, Kākou 1 & 2, Honolulu, HI 96817 |
| | |
March 1, 2023
|
|
| March 24, 2023 | | |
Kurt K. Murao
Executive Vice President, General Counsel, Chief Administrative Officer and Corporate Secretary |
|
|
Years ended December 31
|
| |
2022
|
| |
2021
|
| |
2020
|
| |
2019
|
| ||||||||||||
| HEI CONSOLIDATED NET INCOME | | | | | | | | | | | | | | | | | | | | | | | | | |
| GAAP (as reported) | | | | $ | 241.1 | | | | | $ | 246.2 | | | | | $ | 197.8 | | | | | $ | 217.9 | | |
| Excluding special items (after-tax) for EICP and LTIP purposes: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Reversal of allowance for credit losses related to the pandemic2
|
| | | | (3.9) | | | | | | | | | | | | | | | | | | | | |
|
Branch lease termination costs (gain on sale of branches)
|
| | | | (0.5) | | | | | | | | | | | | | | | | | | | | |
|
Gain on sale of an investment by Pacific Current3
|
| | | | (6.2) | | | | | | | | | | | | | | | | | | | | |
|
Non-GAAP (adjusted) net income for 2022 EICP purposes
|
| | |
|
230.6
|
| | | | | | | | | | | | | | | | | | | |
| Excluding special items (after-tax) for LTIP purposes only: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Allowance (reversal of allowance) for credit losses related to the pandemic2
|
| | | | (5.7) | | | | | | (16.8) | | | | | | 25.2 | | | | | | — | | |
|
Executive officer settlement4
|
| | | | — | | | | | | 1.4 | | | | | | — | | | | | | — | | |
|
State Unemployment Tax assessment5
|
| | | | — | | | | | | (0.9) | | | | | | — | | | | | | — | | |
|
COVID-19 related expenses6
|
| | | | — | | | | | | — | | | | | | 3.7 | | | | | | — | | |
|
Branch lease termination costs (gain on sale of branches)
|
| | | | 0.4 | | | | | | — | | | | | | 0.6 | | | | | | — | | |
|
Gain from VISA stock sale, net
|
| | | | — | | | | | | — | | | | | | (2.2) | | | | | | — | | |
|
Sale of former headquarters, net of campus transition costs
|
| | | | — | | | | | | — | | | | | | — | | | | | | (5.6) | | |
|
Pension defeasement7
|
| | | | (1.0) | | | | | | (1.1) | | | | | | (0.1) | | | | | | — | | |
| Non-GAAP (adjusted) net income for 2020-22 LTIP purposes | | | | $ | 224.3 | | | | | $ | 228.8 | | | | | $ | 225.1 | | | | | $ | 212.3 | | |
| HEI CONSOLIDATED BASIC EARNINGS PER SHARE | | | | | | | | | | | | | | | | | | | | | | | | | |
| Based on GAAP | | | | $ | 2.20 | | | | | $ | 2.25 | | | | | $ | 1.81 | | | | | $ | 2.00 | | |
| Based on non-GAAP (adjusted) for 2020-22 LTIP purposes | | | | | 2.05 | | | | | | 2.09 | | | | | | 2.06 | | | | | | 1.95 | | |
| HEI CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (%) | | | | | | | | | | | | | | | | | | | | | | | | | |
| Based on GAAP | | | | | 10.5 | | | | | | 10.4 | | | | | | 8.6 | | | | | | | | |
| Based on non-GAAP (adjusted) for 2020-22 LTIP purposes8 | | | | | 9.8 | | | | | | 9.7 | | | | | | 9.7 | | | | | | | | |
| ASB NET INCOME | | | | | | | | | | | | | | | | | | | | | | | | | |
| GAAP (as reported) | | | | $ | 80.0 | | | | | $ | 101.2 | | | | | | | | | | | | | | |
| Excluding special items (after-tax) for EICP and LTIP purposes: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Reversal of allowance for credit losses related to the pandemic2
|
| | | | (3.9) | | | | | | | | | | | | | | | | | | | | |
|
Branch lease termination costs (gain on sale of branches)
|
| | | | (0.5) | | | | | | | | | | | | | | | | | | | | |
|
Non-GAAP (adjusted) net income for 2022 EICP purposes
|
| | |
|
75.6
|
| | | | | | | | | | | | | | | | | | | |
| Excluding special items (after-tax) for LTIP purposes only: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Allowance (reversal of allowance) for credit losses related to the pandemic2
|
| | | | (5.7) | | | | | | (16.8) | | | | | | | | | | | | | | |
|
Executive officer settlement4
|
| | | | — | | | | | | 1.4 | | | | | | | | | | | | | | |
|
State Unemployment Tax assessment5
|
| | | | — | | | | | | (0.9) | | | | | | | | | | | | | | |
|
Branch lease termination costs (gain on sale of branches)
|
| | | | 0.4 | | | | | | — | | | | | | | | | | | | | | |
|
Pension defeasement7
|
| | | | (1.0) | | | | | | (1.1) | | | | | | | | | | | | | | |
| Non-GAAP (adjusted) net income for 2020-22 LTIP purposes | | | | $ | 69.3 | | | | | $ | 83.8 | | | | | | | | | | | | | | |
|
Years ended December 31
|
| |
2022
|
| |
2021
|
| |
2020
|
| |
2019
|
| ||||||
| ASB RETURN ON AVERAGE COMMON EQUITY (%) | | | | | | | | | | | | | | | | | | | |
| Based on GAAP | | | | | 14.1 | | | | | | 13.8 | | | | | | | | |
| Based on non-GAAP (adjusted) for 2020-22 LTIP purposes8 | | | | | 12.2 | | | | | | 11.4 | | | | | | | | |
| ASB EFFICIENCY RATIO (%) | | | | | | | | | | | | | | | | | | | |
| Based on GAAP | | | | | 66.3 | | | | | | 65.3 | | | | | | | | |
| Adjustment for pre-tax ASB items above | | | | | 0.3 | | | | | | 0.3 | | | | | | | | |
| Based on non-GAAP (adjusted) for 2020-22 LTIP purposes9 | | | | | 66.6 | | | | | | 65.6 | | | | | | | | |
1 Year Hawaiian Electric (PK) Chart |
1 Month Hawaiian Electric (PK) Chart |
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