Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 28

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 28
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 weight) as the primary performance measures to be used in 2024. For those officers whose positions primarily relate to utility operations in Wisconsin, including Mr. Hooper, the Compensation Committee approved WEC Energy Group's earnings per share (25% weight) and cash flow (25% weight), as well as aggregate net income of WEC Energy Group's Wisconsin utility operations (50% weight), which includes us, as the primary performance measures to be used in 2024. We continue to believe earnings per share and cash flow are key indicators of financial strength and performance, and are recognized as such by the investment community. Utility net income is an important financial measure as it is an indicator of the return on equity earned by WEC Energy Group's utilities and generally, in order to meet WEC Energy Group's earnings per share targets, it is important that the utilities earn at or close to their allowed rate of return.

In January 2024, the Compensation Committee approved the performance goals under the STPP for WEC Energy Group’s earnings per share as set forth in the chart below.

| Earnings Per Share Performance Goal |     | Earnings Per Share Growth Rate |     | Payout Level |
| $4.80                               |     | 4.3%                           |     | 25%          |
| $4.82                               |     | 4.8%                           |     | 50%          |
| $4.85                               |     | 5.5%                           |     | 100%         |
| $4.86                               |     | 5.7%                           |     | 135%         |
| $4.88                               |     | 6.1%                           |     | 200%         |

If WEC Energy Group’s performance falls between these levels, the payout level with respect to earnings per share is determined by interpolating on a straight line basis the appropriate payout level.

At the time the Compensation Committee established the earnings per share performance goals for 2024, WEC Energy Group’s 5-year growth plan called for a compound annual growth rate (“CAGR”) in earnings per share of 6.5% to 7.0% over that period, measured off a 2023 base of $4.60 per share, which represented the mid-point of WEC Energy Group's adjusted 2023 annual earnings guidance. We believe that achievement of this projected CAGR, plus WEC Energy Group’s continued growth in dividends, supports a premium valuation as