Pay vs Performance Disclosure
Dec. 31, 2025
USD ($)
$ / shares
Dec. 31, 2024
USD ($)
$ / shares
Dec. 31, 2023
USD ($)
$ / shares
Dec. 31, 2022
USD ($)
$ / shares
Dec. 31, 2021
USD ($)
$ / shares
Pay Versus Performance
As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 402(v) of Regulation S-K, we are providing the following information about the relationship between executive compensation actually paid (“CAP”) and certain measures of the financial performance of the Company. For further information concerning the Company’s variable pay-for-performance philosophy and how the Company aligns executive compensation with the Company’s performance, refer to the Compensation Discussion and Analysis beginning on page 44.
Summary Compensation Table Total for PEO (1) | Compensation Actually Paid to PEO (2) | Average Summary Compensation Table Total for Non-PEO NEOs (3) | Average Compensation Actually Paid to Non-PEO NEOs (4) | Value of Initial Fixed $100 Investment Based on: | Net Income (millions) (7) | Operating Earnings Per Share (8) | ||||||||||||||||||||||||||||||||||||||||||||
| Year | Total Shareholder Return (5) | Peer Group Total Shareholder Return (6) | ||||||||||||||||||||||||||||||||||||||||||||||||
| (a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | ||||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 36,608,524 | $ | 44,766,056 | $ | 6,111,886 | $ | 7,240,764 | $ | 166.24 | $ | 166.34 | $ | 3,696.00 | $ | 5.97 | ||||||||||||||||||||||||||||||||||
| 2024 Fehrman | $ | 13,257,022 | $ | 11,673,362 | $ | 3,481,271 | $ | 3,891,405 | $ | 128.52 | $ | 140.83 | $ | 2,975.80 | $ | 5.62 | ||||||||||||||||||||||||||||||||||
| 2024 Fowke | $ | 11,330,019 | $ | 12,771,417 | ||||||||||||||||||||||||||||||||||||||||||||||
| 2024 Sloat | $ | 2,921,283 | $ | (1,503,017) | ||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | $ | 10,633,745 | $ | 7,505,424 | $ | 3,234,865 | $ | 54,738 | $ | 108.77 | $ | 114.09 | $ | 2,212.60 | $ | 5.25 | ||||||||||||||||||||||||||||||||||
| 2022 | $ | 16,375,508 | $ | 21,518,114 | $ | 3,069,010 | $ | 3,245,587 | $ | 122.17 | $ | 122.79 | $ | 2,305.60 | $ | 5.09 | ||||||||||||||||||||||||||||||||||
| 2021 | $ | 15,051,215 | $ | 18,719,493 | $ | 3,372,510 | $ | 2,978,593 | $ | 110.69 | $ | 120.02 | $ | 2,488.10 | $ | 4.74 | ||||||||||||||||||||||||||||||||||
(1)“PEO” means Principal Executive Officer, who for all 2025 was William J. Fehrman; 2024 was William J. Fehrman from August 1, 2024, through December 31, 2024; Ben Fowke from February 26, 2024, through July 31, 2024; and Julia A. Sloat from January 1, 2024, through February 25, 2024. Julia A. Sloat was AEP’s PEO for all of 2023, and Nicholas K. Akins was AEP’s PEO for all of 2022, 2021 and 2020. The dollar amounts reported in column (b) are the amounts of total compensation reported for the applicable PEO for the corresponding year in the “Total” column of the Summary Compensation Table (“SCT”). Refer to the SCT in the proxy statement for each year for further information.
(2)The dollar amounts reported in column (c) represent the amount of “compensation actually paid” or “CAP” for Mr. Fehrman, Mr. Fowke, Ms. Sloat, or Mr. Akins, as computed in accordance with Item 402(v) of Regulation S-K. The dollar amounts do not reflect the actual amount of compensation earned by or paid to Mr. Fehrman, Mr. Fowke, Ms. Sloat, or Mr. Akins during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to Mr. Fehrman’s, Mr. Fowke’s, Ms. Sloat’s, and Mr. Akins’ Total Compensation shown in the SCT for the applicable year to calculate “CAP”:
Reported Summary Compensation Table Total | Reported Stock Awards (A) | Equity Award Adjustments (B) | Reported Change in Pension Value (C) | Pension Benefit Adjustments (D) | Compensation Actually Paid to PEO | |||||||||||||||||||||||||||||||||
| Year | ||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 36,608,524 | $ | (29,339,782) | $ | 37,461,629 | $ | 35,685 | $ | — | $ | 44,766,056 | ||||||||||||||||||||||||||
| 2024 Fehrman | $ | 13,257,022 | $ | (9,469,144) | $ | 7,885,484 | $ | — | $ | — | $ | 11,673,362 | ||||||||||||||||||||||||||
| 2024 Fowke | $ | 11,330,019 | $ | (8,060,780) | $ | 9,502,178 | $ | — | $ | — | $ | 12,771,417 | ||||||||||||||||||||||||||
| 2024 Sloat | $ | 2,921,283 | $ | — | $ | (4,365,060) | $ | (140,257) | $ | 81,017 | $ | (1,503,017) | ||||||||||||||||||||||||||
| 2023 | $ | 10,633,745 | $ | (8,321,524) | $ | 5,324,782 | $ | (210,263) | $ | 78,683 | $ | 7,505,424 | ||||||||||||||||||||||||||
| 2022 | $ | 16,375,508 | $ | (10,824,690) | $ | 15,998,849 | $ | (204,063) | $ | 172,510 | $ | 21,518,114 | ||||||||||||||||||||||||||
| 2021 | $ | 15,051,215 | $ | (9,976,149) | $ | 13,937,070 | $ | (461,732) | $ | 169,089 | $ | 18,719,493 | ||||||||||||||||||||||||||
(A) This column reflects the total grant date fair value of equity awards reported in the “Stock Awards” column in the SCT for the applicable year for Mr. Fehrman for 2025, Mr. Fehrman, Mr. Fowke, and Ms. Sloat for 2024, Ms. Sloat for 2023 and Mr. Akins for 2022, 2021, and 2020. Neither Mr. Fehrman, Mr. Fowke, Ms. Sloat, nor Mr. Akins received any stock option awards in the years shown.
(B) The equity award adjustments for each applicable year include the addition (or subtraction, as applicable) of the following:
i.The year-end fair value of any equity awards granted in the applicable year that are outstanding and unvested as of the end of the year;
ii.The amount of change as of the end of the applicable year (from the end of the prior fiscal year) in the fair value of any awards granted in prior years that are outstanding and unvested as of the end of the applicable year;
iii.For awards that are granted and vest in the same applicable year, which was the case for 2024 awards for Mr. Fowke but not for any of the AEP’s other PEOs for any year, the fair value as of the vesting date;
iv.For awards granted in prior years that had all applicable vesting conditions satisfied in the applicable year, the change in fair value as of the vesting date (from the end of the prior fiscal year);
v.For awards granted in prior years that are determined to permanently not meet the applicable vesting conditions during the applicable year, which was the case for 2024 awards for Ms. Sloat and for Mr. Akins for 2023, a deduction equal to the fair value at the end of the prior fiscal year; and
vi.The dollar value of any dividends or other earnings paid on stock or option awards in the applicable year prior to the vesting date that are not otherwise reflected in the fair value of such award or included in any other component of total compensation for the applicable year, of which there were none for any of AEP’s PEOs for any year.
The valuation methodology used to determine valuation assumptions and calculate fair values for the TSR portion of the Company’s performance units is consistent with those previously disclosed for the calculation of grant date values and was calculated in accordance with FASB ASC Topic 718 by an independent third party. See Note 15 to the Consolidated Financial Statements included in our Form 10-K for the applicable year for a discussion of the relevant assumptions used in calculating the grant date fair values of equity awards. Performance measures, other than TSR, in the Company’s performance shares were valued using target scores as of the grant date, the Company’s projected score for each measure for valuation dates within the performance period, and the actual score for vested awards. These scores were multiplied by the closing share price of AEP common stock on the vesting date or at year-end, as applicable, and by the number of shares or units then outstanding associated with the weight assigned to each performance measure, including shares or units due to dividend credits.
The prorated portion of performance shares that vest due to the elimination of an executive’s position and separation from AEP service as the result of a consolidation, reorganization, restructuring, or downsizing, or under circumstances that give rise to Executive Severance Plan Benefits are treated as unvested until the end of the performance period for the purpose of calculating “CAP”. The unrestricted but not yet payable shares granted to Mr. Akins in 2023 were also treated as unvested shares for that year. The amounts deducted or added in calculating the equity award adjustments are as follows:
Year End Fair Value of Equity Awards Granted in Year Shown | Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards | Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year | Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year | Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in the Year | Value of Dividends or other Earnings Paid on Stock or Option Awards not Otherwise Reflected in Fair Value or Total Compensation | Total Equity Award Adjustments | ||||||||||||||||||||||||||||||||||||||
| Year | ||||||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 34,152,225 | $ | 2,965,147 | $ | — | $ | 344,257 | $ | — | $ | — | $ | 37,461,629 | ||||||||||||||||||||||||||||||
| 2024 Fehrman | $ | 7,885,484 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 7,885,484 | ||||||||||||||||||||||||||||||
| 2024 Fowke | $ | — | $ | — | $ | 9,502,178 | $ | — | $ | — | $ | — | $ | 9,502,178 | ||||||||||||||||||||||||||||||
| 2024 Sloat | $ | — | $ | 685 | $ | — | $ | 311,912 | $ | (4,677,657) | $ | — | $ | (4,365,060) | ||||||||||||||||||||||||||||||
| 2023 | $ | 6,788,470 | $ | (872,237) | $ | — | $ | (591,451) | $ | — | $ | — | $ | 5,324,782 | ||||||||||||||||||||||||||||||
| 2022 | $ | 14,002,330 | $ | 1,846,351 | $ | — | $ | 150,168 | $ | — | $ | — | $ | 15,998,849 | ||||||||||||||||||||||||||||||
| 2021 | $ | 12,066,172 | $ | 371,547 | $ | — | $ | 1,499,351 | $ | — | $ | — | $ | 13,937,070 | ||||||||||||||||||||||||||||||
(C) The amounts included in this column are the Change in Pension Value amounts reported in “Change in Pension Value and Nonqualified Deferred Compensation Earnings” column of the SCT for the applicable year. Neither Mr. Fehrman nor Mr. Fowke was eligible to participate in AEP’s pension plan during 2024. None of AEP’s PEOs received preferential or above-market earnings on deferred compensation for any of the years shown.
(D) The total pension benefit adjustment for each applicable year includes the aggregate of two components: (i) the actuarially determined service cost for services rendered by AEP’s PEOs during the applicable year (the “service cost”); and (ii) the entire cost of benefits granted in a plan amendment (or initiation) during the applicable year that are attributed by the benefit formula to services rendered in periods prior to the plan amendment or initiation (the “prior service cost”), of which there were none. In each case, the adjustments are calculated in accordance with U.S. GAAP. The amounts deducted or added in calculating the pension benefit adjustments are as follows:
| Year / Plan | Service Cost | Prior Service Cost | Total Pension Benefit Adjustments | |||||||||||||||||
| 2025 | ||||||||||||||||||||
| AEP Retirement Plan | $ | — | $ | — | $ | — | ||||||||||||||
| AEP Supplemental Benefit Plan | $ | — | $ | — | $ | — | ||||||||||||||
| 2025 Total | $ | — | $ | — | $ | — | ||||||||||||||
| 2024 | ||||||||||||||||||||
| 2024 - Fehrman | $ | — | $ | — | $ | — | ||||||||||||||
| 2024 - Fowke | $ | — | $ | — | $ | — | ||||||||||||||
| 2024 - Sloat | $ | — | $ | — | $ | — | ||||||||||||||
AEP Retirement Plan | $ | 46,247 | $ | — | $ | 46,247 | ||||||||||||||
AEP Supplemental Benefit Plan | $ | 94,010 | $ | — | $ | 94,010 | ||||||||||||||
2024 Total | $ | 140,257 | $ | — | $ | 140,257 | ||||||||||||||
| 2023 | ||||||||||||||||||||
AEP Retirement Plan | $ | 14,385 | $ | — | $ | 14,385 | ||||||||||||||
AEP Supplemental Benefit Plan | $ | 64,298 | $ | — | $ | 64,298 | ||||||||||||||
2023 Total | $ | 78,683 | $ | — | $ | 78,683 | ||||||||||||||
2022 | ||||||||||||||||||||
AEP Retirement Plan | $ | 23,676 | $ | — | $ | 23,676 | ||||||||||||||
CSW Executive Retirement Plan | $ | 148,834 | $ | — | $ | 148,834 | ||||||||||||||
2022 Total | $ | 172,510 | $ | — | $ | 172,510 | ||||||||||||||
| 2021 | ||||||||||||||||||||
AEP Retirement Plan | $ | 23,999 | $ | — | $ | 23,999 | ||||||||||||||
CSW Executive Retirement Plan | $ | 145,090 | $ | — | $ | 145,090 | ||||||||||||||
2021 Total | $ | 169,089 | $ | — | $ | 169,089 | ||||||||||||||
(3)The dollar amounts reported in column (d) represent the average of the amounts reported for the Company’s named executive officers (NEOs) as a group, excluding AEP’s PEOs, for the applicable year, in the “Total” column of the SCT in the applicable year. Refer to the SCT in the proxy statement for each year for further information. The names of each of AEP’s Non-PEO NEOs (i.e., excluding Mr. Fehrman for 2025, Mr. Fehrman, Mr. Fowke, and Ms. Sloat for 2024, Ms. Sloat for 2023, and Mr. Akins for 2020-2022) included for purposes of calculating the average amounts in each applicable year are as follows:
2025: Trevor I. Mihalik, Douglas A. Cannon, Robert B. Berntsen, Alicia R. Knapp, and Charles E. Zebula
2024: Charles E. Zebula, Greg B. Hall, David M. Feinberg, Therace M. Risch
2023: Charles E. Zebula, David M. Feinberg, Christian T. Beam, Peggy I. Simmons, Nicholas K. Akins, and Ann P. Kelly
2022: Julia A. Sloat, Ann P. Kelly, David M. Feinberg, Charles E. Zebula, Paul Chodak III, and Lisa M. Barton
2021: Julia A. Sloat, Lisa M. Barton, David M. Feinberg, Charles E. Zebula, Brian X. Tierney, and Mark C. McCullough
(4)The dollar amounts reported in column (e) represent the average amount of “CAP” for the NEOs as a group, excluding AEP’s PEOs for the applicable year, as computed in accordance with Item 402(v) of Regulation S-K. The dollar amounts do not reflect the actual average amount of compensation earned by or paid to the NEOs as a group, excluding AEP’s PEOs for the applicable year, during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to average total compensation for the NEOs as a group, excluding AEP’s PEOs for the applicable year, for each year to determine the “CAP”, using the same methodology described above in Note 2:
Average Reported Summary Compensation Table Total for Non-PEO NEOs | Average Reported Value of Stock Awards | Average Equity Award Adjustments (A) | Average Reported Change in Pension Value | Average Pension Benefit Adjustments (B) | Average Compensation Actually Paid “CAP” to Non-PEO NEOs | |||||||||||||||||||||||||||||||||
| Year | ||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 6,111,886 | $ | (4,229,588) | $ | 5,373,947 | $ | (30,397) | $ | 14,915 | $ | 7,240,764 | ||||||||||||||||||||||||||
| 2024 | $ | 3,481,271 | $ | 2,071,328 | $ | 2,546,522 | $ | 134,680 | $ | 69,620 | $ | 3,891,405 | ||||||||||||||||||||||||||
| 2023 | $ | 3,234,865 | $ | (1,825,263) | $ | (1,218,452) | $ | (211,962) | $ | 75,549 | $ | 54,738 | ||||||||||||||||||||||||||
2022 | $ | 3,069,010 | $ | (1,896,237) | $ | 2,019,809 | $ | (2,514) | $ | 55,520 | $ | 3,245,587 | ||||||||||||||||||||||||||
2021 | $ | 3,372,510 | $ | (1,903,587) | $ | 1,517,671 | $ | (63,057) | $ | 55,056 | $ | 2,978,593 | ||||||||||||||||||||||||||
(A) The amounts deducted or added in calculating the total average equity award adjustments for non-PEO NEOs are as follows:
| Year | Average Year End Fair Value of Equity Award | Year over Year Average Change in Fair Value of Outstanding and Unvested Equity Awards | Average Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year | Year over Year Average Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year | Average Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in the Year | Average Value of Dividends or other Earnings Paid on Stock or Option Awards not Otherwise Reflected in Fair Value or Total Compensation | Total Average Equity Award Adjustments | |||||||||||||||||||||||||||||||||||||
| 2025 | $ | 5,263,807 | $ | — | $ | — | $ | 154,416 | $ | (44,276) | $ | — | $ | 5,373,947 | ||||||||||||||||||||||||||||||
| 2024 | $ | 2,164,155 | $ | 40,313 | $ | — | $ | 342,054 | $ | — | $ | — | $ | 2,546,522 | ||||||||||||||||||||||||||||||
| 2023 | $ | 1,354,725 | $ | (554,215) | $ | 14,510 | $ | (750,710) | $ | (1,282,762) | $ | — | $ | (1,218,452) | ||||||||||||||||||||||||||||||
2022 | $ | 1,916,756 | $ | 222,215 | $ | 28,346 | $ | 36,593 | $ | (184,101) | $ | — | $ | 2,019,809 | ||||||||||||||||||||||||||||||
2021 | $ | 1,487,311 | $ | 48,144 | $ | 215,087 | $ | 222,189 | $ | (455,060) | $ | — | $ | 1,517,671 | ||||||||||||||||||||||||||||||
(B) The amounts deducted or added in calculating the total pension benefit adjustments for non-PEO NEOs are as follows:
| Year / Plan | Average Service Cost | Average Prior Service Cost | Average Total Pension Benefit Adjustments | |||||||||||||||||
| 2025 | ||||||||||||||||||||
| AEP Retirement Plan | $ | 4,497 | $ | — | $ | 4,497 | ||||||||||||||
| AEP Supplement Benefit Plan | $ | 10,418 | $ | — | $ | 10,418 | ||||||||||||||
| 2025 Total | $ | 14,915 | $ | — | $ | 14,915 | ||||||||||||||
| 2024 | ||||||||||||||||||||
AEP Retirement Plan | $ | 20,343 | $ | — | $ | 20,343 | ||||||||||||||
AEP Supplement Benefit Plan | $ | 49,277 | $ | — | $ | 49,277 | ||||||||||||||
2024 Total | $ | 69,620 | $ | — | $ | 69,620 | ||||||||||||||
| 2023 | ||||||||||||||||||||
AEP Retirement Plan | $ | 18,505 | $ | — | $ | 18,505 | ||||||||||||||
AEP Supplement Benefit Plan | $ | 57,044 | $ | — | $ | 57,044 | ||||||||||||||
2023 Total | $ | 75,549 | $ | — | $ | 75,549 | ||||||||||||||
2022 | ||||||||||||||||||||
AEP Retirement Plan | $ | 15,227 | $ | — | $ | 15,227 | ||||||||||||||
AEP Supplement Benefit Plan | $ | 40,293 | $ | — | $ | 40,293 | ||||||||||||||
2022 Total | $ | 55,520 | $ | — | $ | 55,520 | ||||||||||||||
| 2021 | ||||||||||||||||||||
AEP Retirement Plan | $ | 12,220 | $ | — | $ | 12,220 | ||||||||||||||
AEP Supplement Benefit Plan | $ | 42,836 | $ | — | $ | 42,836 | ||||||||||||||
2021 Total | $ | 55,056 | $ | — | $ | 55,056 | ||||||||||||||
(5)Total shareholder return (TSR) reflects the value at the end of the year shown of $100 invested in the Company’s common stock at the closing market price on the last trading day immediately prior to the first year shown. This provides a cumulative TSR value that incorporates both the appreciation or depreciation of the Company’s stock price and the value of dividends, which are assumed to have been reinvested in additional AEP shares. TSR for this purpose was calculated and provided by Bloomberg L.P. as of December 31, 2025. Past performance is not a guarantee of future results.
(6)Represents the market-capitalization weighted average TSR of the S&P Electric Utilities (SP833) that was also used for the stock performance graph required by Item 201(e) of Regulation S-K in our Annual Report for the year ended December 31, 2025. This is an index of peer companies provided by S&P Dow Jones Indices LLC for which the TSR was calculated and provided by Bloomberg L.P. as of December 31, 2025.
(7)The dollar amounts reported represent the amount of net income reflected in the Company’s audited financial statements for the applicable year.
(8)Operating earnings per share is a non-GAAP financial measure. Exhibit A to the proxy statement for the corresponding year contains a full reconciliation of GAAP earnings per share to non-GAAP operating earnings per share for that year. For purposes of Item 402(v) of Regulation S-K, the Company has determined that operating earnings per share is the financial performance measure that, in the Company’s assessment, represents the most important performance measure used by the Company to link “CAP” of the Company’s NEOs to Company performance for the most recent four fiscal years.
Reported Summary Compensation Table Total | Reported Stock Awards (A) | Equity Award Adjustments (B) | Reported Change in Pension Value (C) | Pension Benefit Adjustments (D) | Compensation Actually Paid to PEO | |||||||||||||||||||||||||||||||||
| Year | ||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 36,608,524 | $ | (29,339,782) | $ | 37,461,629 | $ | 35,685 | $ | — | $ | 44,766,056 | ||||||||||||||||||||||||||
| 2024 Fehrman | $ | 13,257,022 | $ | (9,469,144) | $ | 7,885,484 | $ | — | $ | — | $ | 11,673,362 | ||||||||||||||||||||||||||
| 2024 Fowke | $ | 11,330,019 | $ | (8,060,780) | $ | 9,502,178 | $ | — | $ | — | $ | 12,771,417 | ||||||||||||||||||||||||||
| 2024 Sloat | $ | 2,921,283 | $ | — | $ | (4,365,060) | $ | (140,257) | $ | 81,017 | $ | (1,503,017) | ||||||||||||||||||||||||||
| 2023 | $ | 10,633,745 | $ | (8,321,524) | $ | 5,324,782 | $ | (210,263) | $ | 78,683 | $ | 7,505,424 | ||||||||||||||||||||||||||
| 2022 | $ | 16,375,508 | $ | (10,824,690) | $ | 15,998,849 | $ | (204,063) | $ | 172,510 | $ | 21,518,114 | ||||||||||||||||||||||||||
| 2021 | $ | 15,051,215 | $ | (9,976,149) | $ | 13,937,070 | $ | (461,732) | $ | 169,089 | $ | 18,719,493 | ||||||||||||||||||||||||||
(A) This column reflects the total grant date fair value of equity awards reported in the “Stock Awards” column in the SCT for the applicable year for Mr. Fehrman for 2025, Mr. Fehrman, Mr. Fowke, and Ms. Sloat for 2024, Ms. Sloat for 2023 and Mr. Akins for 2022, 2021, and 2020. Neither Mr. Fehrman, Mr. Fowke, Ms. Sloat, nor Mr. Akins received any stock option awards in the years shown.
(B) The equity award adjustments for each applicable year include the addition (or subtraction, as applicable) of the following:
i.The year-end fair value of any equity awards granted in the applicable year that are outstanding and unvested as of the end of the year;
ii.The amount of change as of the end of the applicable year (from the end of the prior fiscal year) in the fair value of any awards granted in prior years that are outstanding and unvested as of the end of the applicable year;
iii.For awards that are granted and vest in the same applicable year, which was the case for 2024 awards for Mr. Fowke but not for any of the AEP’s other PEOs for any year, the fair value as of the vesting date;
iv.For awards granted in prior years that had all applicable vesting conditions satisfied in the applicable year, the change in fair value as of the vesting date (from the end of the prior fiscal year);
v.For awards granted in prior years that are determined to permanently not meet the applicable vesting conditions during the applicable year, which was the case for 2024 awards for Ms. Sloat and for Mr. Akins for 2023, a deduction equal to the fair value at the end of the prior fiscal year; and
vi.The dollar value of any dividends or other earnings paid on stock or option awards in the applicable year prior to the vesting date that are not otherwise reflected in the fair value of such award or included in any other component of total compensation for the applicable year, of which there were none for any of AEP’s PEOs for any year.
The valuation methodology used to determine valuation assumptions and calculate fair values for the TSR portion of the Company’s performance units is consistent with those previously disclosed for the calculation of grant date values and was calculated in accordance with FASB ASC Topic 718 by an independent third party. See Note 15 to the Consolidated Financial Statements included in our Form 10-K for the applicable year for a discussion of the relevant assumptions used in calculating the grant date fair values of equity awards. Performance measures, other than TSR, in the Company’s performance shares were valued using target scores as of the grant date, the Company’s projected score for each measure for valuation dates within the performance period, and the actual score for vested awards. These scores were multiplied by the closing share price of AEP common stock on the vesting date or at year-end, as applicable, and by the number of shares or units then outstanding associated with the weight assigned to each performance measure, including shares or units due to dividend credits.
The prorated portion of performance shares that vest due to the elimination of an executive’s position and separation from AEP service as the result of a consolidation, reorganization, restructuring, or downsizing, or under circumstances that give rise to Executive Severance Plan Benefits are treated as unvested until the end of the performance period for the purpose of calculating “CAP”. The unrestricted but not yet payable shares granted to Mr. Akins in 2023 were also treated as unvested shares for that year. The amounts deducted or added in calculating the equity award adjustments are as follows:
Year End Fair Value of Equity Awards Granted in Year Shown | Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards | Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year | Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year | Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in the Year | Value of Dividends or other Earnings Paid on Stock or Option Awards not Otherwise Reflected in Fair Value or Total Compensation | Total Equity Award Adjustments | ||||||||||||||||||||||||||||||||||||||
| Year | ||||||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 34,152,225 | $ | 2,965,147 | $ | — | $ | 344,257 | $ | — | $ | — | $ | 37,461,629 | ||||||||||||||||||||||||||||||
| 2024 Fehrman | $ | 7,885,484 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 7,885,484 | ||||||||||||||||||||||||||||||
| 2024 Fowke | $ | — | $ | — | $ | 9,502,178 | $ | — | $ | — | $ | — | $ | 9,502,178 | ||||||||||||||||||||||||||||||
| 2024 Sloat | $ | — | $ | 685 | $ | — | $ | 311,912 | $ | (4,677,657) | $ | — | $ | (4,365,060) | ||||||||||||||||||||||||||||||
| 2023 | $ | 6,788,470 | $ | (872,237) | $ | — | $ | (591,451) | $ | — | $ | — | $ | 5,324,782 | ||||||||||||||||||||||||||||||
| 2022 | $ | 14,002,330 | $ | 1,846,351 | $ | — | $ | 150,168 | $ | — | $ | — | $ | 15,998,849 | ||||||||||||||||||||||||||||||
| 2021 | $ | 12,066,172 | $ | 371,547 | $ | — | $ | 1,499,351 | $ | — | $ | — | $ | 13,937,070 | ||||||||||||||||||||||||||||||
(C) The amounts included in this column are the Change in Pension Value amounts reported in “Change in Pension Value and Nonqualified Deferred Compensation Earnings” column of the SCT for the applicable year. Neither Mr. Fehrman nor Mr. Fowke was eligible to participate in AEP’s pension plan during 2024. None of AEP’s PEOs received preferential or above-market earnings on deferred compensation for any of the years shown.
(D) The total pension benefit adjustment for each applicable year includes the aggregate of two components: (i) the actuarially determined service cost for services rendered by AEP’s PEOs during the applicable year (the “service cost”); and (ii) the entire cost of benefits granted in a plan amendment (or initiation) during the applicable year that are attributed by the benefit formula to services rendered in periods prior to the plan amendment or initiation (the “prior service cost”), of which there were none. In each case, the adjustments are calculated in accordance with U.S. GAAP. The amounts deducted or added in calculating the pension benefit adjustments are as follows:
| Year / Plan | Service Cost | Prior Service Cost | Total Pension Benefit Adjustments | |||||||||||||||||
| 2025 | ||||||||||||||||||||
| AEP Retirement Plan | $ | — | $ | — | $ | — | ||||||||||||||
| AEP Supplemental Benefit Plan | $ | — | $ | — | $ | — | ||||||||||||||
| 2025 Total | $ | — | $ | — | $ | — | ||||||||||||||
| 2024 | ||||||||||||||||||||
| 2024 - Fehrman | $ | — | $ | — | $ | — | ||||||||||||||
| 2024 - Fowke | $ | — | $ | — | $ | — | ||||||||||||||
| 2024 - Sloat | $ | — | $ | — | $ | — | ||||||||||||||
AEP Retirement Plan | $ | 46,247 | $ | — | $ | 46,247 | ||||||||||||||
AEP Supplemental Benefit Plan | $ | 94,010 | $ | — | $ | 94,010 | ||||||||||||||
2024 Total | $ | 140,257 | $ | — | $ | 140,257 | ||||||||||||||
| 2023 | ||||||||||||||||||||
AEP Retirement Plan | $ | 14,385 | $ | — | $ | 14,385 | ||||||||||||||
AEP Supplemental Benefit Plan | $ | 64,298 | $ | — | $ | 64,298 | ||||||||||||||
2023 Total | $ | 78,683 | $ | — | $ | 78,683 | ||||||||||||||
2022 | ||||||||||||||||||||
AEP Retirement Plan | $ | 23,676 | $ | — | $ | 23,676 | ||||||||||||||
CSW Executive Retirement Plan | $ | 148,834 | $ | — | $ | 148,834 | ||||||||||||||
2022 Total | $ | 172,510 | $ | — | $ | 172,510 | ||||||||||||||
| 2021 | ||||||||||||||||||||
AEP Retirement Plan | $ | 23,999 | $ | — | $ | 23,999 | ||||||||||||||
CSW Executive Retirement Plan | $ | 145,090 | $ | — | $ | 145,090 | ||||||||||||||
2021 Total | $ | 169,089 | $ | — | $ | 169,089 | ||||||||||||||
Average Reported Summary Compensation Table Total for Non-PEO NEOs | Average Reported Value of Stock Awards | Average Equity Award Adjustments (A) | Average Reported Change in Pension Value | Average Pension Benefit Adjustments (B) | Average Compensation Actually Paid “CAP” to Non-PEO NEOs | |||||||||||||||||||||||||||||||||
| Year | ||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 6,111,886 | $ | (4,229,588) | $ | 5,373,947 | $ | (30,397) | $ | 14,915 | $ | 7,240,764 | ||||||||||||||||||||||||||
| 2024 | $ | 3,481,271 | $ | 2,071,328 | $ | 2,546,522 | $ | 134,680 | $ | 69,620 | $ | 3,891,405 | ||||||||||||||||||||||||||
| 2023 | $ | 3,234,865 | $ | (1,825,263) | $ | (1,218,452) | $ | (211,962) | $ | 75,549 | $ | 54,738 | ||||||||||||||||||||||||||
2022 | $ | 3,069,010 | $ | (1,896,237) | $ | 2,019,809 | $ | (2,514) | $ | 55,520 | $ | 3,245,587 | ||||||||||||||||||||||||||
2021 | $ | 3,372,510 | $ | (1,903,587) | $ | 1,517,671 | $ | (63,057) | $ | 55,056 | $ | 2,978,593 | ||||||||||||||||||||||||||
(A) The amounts deducted or added in calculating the total average equity award adjustments for non-PEO NEOs are as follows:
| Year | Average Year End Fair Value of Equity Award | Year over Year Average Change in Fair Value of Outstanding and Unvested Equity Awards | Average Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year | Year over Year Average Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year | Average Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in the Year | Average Value of Dividends or other Earnings Paid on Stock or Option Awards not Otherwise Reflected in Fair Value or Total Compensation | Total Average Equity Award Adjustments | |||||||||||||||||||||||||||||||||||||
| 2025 | $ | 5,263,807 | $ | — | $ | — | $ | 154,416 | $ | (44,276) | $ | — | $ | 5,373,947 | ||||||||||||||||||||||||||||||
| 2024 | $ | 2,164,155 | $ | 40,313 | $ | — | $ | 342,054 | $ | — | $ | — | $ | 2,546,522 | ||||||||||||||||||||||||||||||
| 2023 | $ | 1,354,725 | $ | (554,215) | $ | 14,510 | $ | (750,710) | $ | (1,282,762) | $ | — | $ | (1,218,452) | ||||||||||||||||||||||||||||||
2022 | $ | 1,916,756 | $ | 222,215 | $ | 28,346 | $ | 36,593 | $ | (184,101) | $ | — | $ | 2,019,809 | ||||||||||||||||||||||||||||||
2021 | $ | 1,487,311 | $ | 48,144 | $ | 215,087 | $ | 222,189 | $ | (455,060) | $ | — | $ | 1,517,671 | ||||||||||||||||||||||||||||||
(B) The amounts deducted or added in calculating the total pension benefit adjustments for non-PEO NEOs are as follows:
| Year / Plan | Average Service Cost | Average Prior Service Cost | Average Total Pension Benefit Adjustments | |||||||||||||||||
| 2025 | ||||||||||||||||||||
| AEP Retirement Plan | $ | 4,497 | $ | — | $ | 4,497 | ||||||||||||||
| AEP Supplement Benefit Plan | $ | 10,418 | $ | — | $ | 10,418 | ||||||||||||||
| 2025 Total | $ | 14,915 | $ | — | $ | 14,915 | ||||||||||||||
| 2024 | ||||||||||||||||||||
AEP Retirement Plan | $ | 20,343 | $ | — | $ | 20,343 | ||||||||||||||
AEP Supplement Benefit Plan | $ | 49,277 | $ | — | $ | 49,277 | ||||||||||||||
2024 Total | $ | 69,620 | $ | — | $ | 69,620 | ||||||||||||||
| 2023 | ||||||||||||||||||||
AEP Retirement Plan | $ | 18,505 | $ | — | $ | 18,505 | ||||||||||||||
AEP Supplement Benefit Plan | $ | 57,044 | $ | — | $ | 57,044 | ||||||||||||||
2023 Total | $ | 75,549 | $ | — | $ | 75,549 | ||||||||||||||
2022 | ||||||||||||||||||||
AEP Retirement Plan | $ | 15,227 | $ | — | $ | 15,227 | ||||||||||||||
AEP Supplement Benefit Plan | $ | 40,293 | $ | — | $ | 40,293 | ||||||||||||||
2022 Total | $ | 55,520 | $ | — | $ | 55,520 | ||||||||||||||
| 2021 | ||||||||||||||||||||
AEP Retirement Plan | $ | 12,220 | $ | — | $ | 12,220 | ||||||||||||||
AEP Supplement Benefit Plan | $ | 42,836 | $ | — | $ | 42,836 | ||||||||||||||
2021 Total | $ | 55,056 | $ | — | $ | 55,056 | ||||||||||||||
“CAP” vs. AEP TSR
As shown in the chart below, AEP’s TSR increased in 2021 and 2022 before declining in 2023 and increasing in 2024 and 2025. The 2024 “CAP” is shown in the chart below only for Mr. Fehrman, AEP’s ongoing PEO, because “CAP” for Mr. Fowke and Ms. Sloat should not be expected to be aligned with AEP’s full-year 2024 TSR. This is because Mr. Fowke was AEP’s PEO on an interim basis for only five months of 2024, and Ms. Sloat was AEP’s PEO for less than two months of 2024, and her 2024 CAP was substantially affected by her employment termination. “CAP” for AEP’s PEO increased substantially for 2021 and 2022 before declining substantially in 2023 and increasing again in 2024 and 2025. The decline in PEO “CAP” in 2023 was primarily due to an incumbent change. In addition, 2023 CAP for both the PEO and Non-PEO NEOs declined due to the Company not meeting its operating earnings per share goal. The increase in PEO “CAP” in 2024 was primarily also due to an incumbent change. In addition, 2024 CAP for both the PEO and Non-PEO NEOs increased from 2023 due to improved operating earnings per share performance, although 2024 operating earnings per share was slightly below the midpoint of our earnings guidance. 2025 CAP for both the PEO and Non-PEO NEOs increased from 2024 due to improved operating earnings per share performance with 2025 operating earnings per share above earnings guidance. Despite the impact on “CAP” of the PEO incumbent changes, the chart shows directional alignment of “CAP” with TSR for all years. This alignment is due primarily to the use of equity incentives, the value of which is denominated in AEP stock and thereby directly tied to AEP’s TSR. In addition, CAP is significantly driven by performance shares and the substantial portion of short-term incentive compensation that is tied to operating earnings per share and other performance measures that we believe are directionally aligned with the value that AEP provides to shareholders that further encourage TSR improvement through incentive compensation leverage. For example, performance that would drive an x% increase in stock price might drive a 2x% increase in “CAP” through such leverage. Such incentive leverage increases the incentive for executives to produce strong performance on metrics that drive TSR.
“CAP” vs. Net Income
The chart below shows that “CAP” for our PEO and the average “CAP” for our Non-PEO NEOs (i.e., excluding AEP’s PEOs for the applicable years) was directionally aligned with the Company’s net income for 2021, 2023, 2024, and 2025, but not for 2022. The lack of directional alignment of “CAP” to Net Income for 2022 is primarily because the Company uses operating earnings per share, not net income, as the primary measure of the Company’s earnings performance in its executive compensation program. Therefore, when operating earnings per share and net income are not directionally consistent, as was the case in 2022, “CAP” will be more aligned with operating earnings per share than net income. The Company does not use net income as a performance measure, in part, because the Company believes operating earnings per share is a measure upon which management’s actions have a more significant impact and, therefore, it is a better measure of the performance of management and the Company. Operating earnings per share also better reflects the Company’s future earnings capacity and is more closely aligned with the Company’s TSR. PEO “CAP” for 2023 and 2024 was also significantly affected by incumbent changes. In addition, 2023 CAP for both the PEO and Non-PEO NEOs declined due to the Company not meeting its operating earnings per share goal. The increase in PEO “CAP” in 2024 was primarily also due to an incumbent change. In addition, 2024 “CAP” for both the PEO and Non-PEO NEOs increased from 2023 due to improved operating earnings per share performance, although 2024 operating earnings per share was slightly below the midpoint of our earnings guidance. 2025 CAP for both the PEO and Non-PEO NEOs increased from 2024 due to improved operating earnings per share performance with 2025 operating earnings per share above earnings guidance.
“CAP” vs. AEP Operating Earnings Per Share
As shown in the chart below, AEP’s operating earnings per share was well aligned with “CAP” for 2021, 2022, 2024, and 2025, but not for 2023. This is primarily because the “CAP” for our PEO declined in 2023 due to an incumbent change. In addition, 2023 CAP for both the PEO and Non-PEO NEOs declined due to the Company not meeting its operating earnings per share goal. The increase in PEO “CAP” in 2024 was primarily also due to an incumbent change. In addition, 2024 CAP for both the PEO and Non-PEO NEOs increased from 2023 due to improved operating earnings per share performance, although 2024 operating earnings per share was slightly below the midpoint of our 2024 earnings guidance. 2025 CAP for both the PEO and Non-PEO NEOs increased from 2024 due to improved operating earnings per share performance with 2025 operating earnings per share above earnings guidance. The alignment of “CAP” with operating earnings per share for 2021, 2022, and 2024 is because 50% of long-term incentive compensation and 60% of short-term incentive compensation were tied to the achievement of operating earnings per share objectives over a three-year and one-year period, respectively. The HR Committee assigned these substantial incentive compensation weights to operating earnings per share, in part, because it is a measure upon which management’s actions have significant impact, and it reflects the achievement of the Company’s earnings growth targets, which are a primary driver of the Company’s stock price and TSR.
Total Shareholder Return (TSR): AEP vs. Industry Peer Index (S&P Utilities)
As shown in the chart below, AEP’s five-year cumulative TSR was positive but lagged our industry peers for the 2021 through 2025 period. AEP’s five-year cumulative TSR lagged our industry peers in 2021, regained ground in 2022, lagged in 2023 and 2024, and regained ground in 2025.
The six performance measures below represent the most important measures we used to determine “CAP” for AEP’s NEOs and other employees in 2025. These measures are further described in the Compensation Discussion and Analysis in the sections titled Annual Incentive Compensation and Long-term Incentive Compensation.
| Most Important 2025 Performance Measures Impacting "CAP" | ||
Financial Measures (A) | ||
Operating Earnings Per Share | ||
Total Shareholder Return Rank Relative to Peer Companies | ||
| Non-Financial Measures | ||
Customer Service | ||
| Employee Commitment | ||
| Regulatory & Legislative Integrity | ||
Environmental Respect | ||
Operational Excellence | ||
(A) AEP used 2 financial measures in 2025.
| [1] | This column reflects the total grant date fair value of equity awards reported in the “Stock Awards” column in the SCT for the applicable year for Mr. Fehrman for 2025, Mr. Fehrman, Mr. Fowke, and Ms. Sloat for 2024, Ms. Sloat for 2023 and Mr. Akins for 2022, 2021, and 2020. Neither Mr. Fehrman, Mr. Fowke, Ms. Sloat, nor Mr. Akins received any stock option awards in the years shown. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| [2] | “PEO” means Principal Executive Officer, who for all 2025 was William J. Fehrman; 2024 was William J. Fehrman from August 1, 2024, through December 31, 2024; Ben Fowke from February 26, 2024, through July 31, 2024; and Julia A. Sloat from January 1, 2024, through February 25, 2024. Julia A. Sloat was AEP’s PEO for all of 2023, and Nicholas K. Akins was AEP’s PEO for all of 2022, 2021 and 2020. The dollar amounts reported in column (b) are the amounts of total compensation reported for the applicable PEO for the corresponding year in the “Total” column of the Summary Compensation Table (“SCT”). Refer to the SCT in the proxy statement for each year for further information. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| [3] | The dollar amounts reported in column (c) represent the amount of “compensation actually paid” or “CAP” for Mr. Fehrman, Mr. Fowke, Ms. Sloat, or Mr. Akins, as computed in accordance with Item 402(v) of Regulation S-K. The dollar amounts do not reflect the actual amount of compensation earned by or paid to Mr. Fehrman, Mr. Fowke, Ms. Sloat, or Mr. Akins during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to Mr. Fehrman’s, Mr. Fowke’s, Ms. Sloat’s, and Mr. Akins’ Total Compensation shown in the SCT for the applicable year to calculate “CAP”:
(A) This column reflects the total grant date fair value of equity awards reported in the “Stock Awards” column in the SCT for the applicable year for Mr. Fehrman for 2025, Mr. Fehrman, Mr. Fowke, and Ms. Sloat for 2024, Ms. Sloat for 2023 and Mr. Akins for 2022, 2021, and 2020. Neither Mr. Fehrman, Mr. Fowke, Ms. Sloat, nor Mr. Akins received any stock option awards in the years shown. (B) The equity award adjustments for each applicable year include the addition (or subtraction, as applicable) of the following: i.The year-end fair value of any equity awards granted in the applicable year that are outstanding and unvested as of the end of the year; ii.The amount of change as of the end of the applicable year (from the end of the prior fiscal year) in the fair value of any awards granted in prior years that are outstanding and unvested as of the end of the applicable year; iii.For awards that are granted and vest in the same applicable year, which was the case for 2024 awards for Mr. Fowke but not for any of the AEP’s other PEOs for any year, the fair value as of the vesting date; iv.For awards granted in prior years that had all applicable vesting conditions satisfied in the applicable year, the change in fair value as of the vesting date (from the end of the prior fiscal year); v.For awards granted in prior years that are determined to permanently not meet the applicable vesting conditions during the applicable year, which was the case for 2024 awards for Ms. Sloat and for Mr. Akins for 2023, a deduction equal to the fair value at the end of the prior fiscal year; and vi.The dollar value of any dividends or other earnings paid on stock or option awards in the applicable year prior to the vesting date that are not otherwise reflected in the fair value of such award or included in any other component of total compensation for the applicable year, of which there were none for any of AEP’s PEOs for any year. The valuation methodology used to determine valuation assumptions and calculate fair values for the TSR portion of the Company’s performance units is consistent with those previously disclosed for the calculation of grant date values and was calculated in accordance with FASB ASC Topic 718 by an independent third party. See Note 15 to the Consolidated Financial Statements included in our Form 10-K for the applicable year for a discussion of the relevant assumptions used in calculating the grant date fair values of equity awards. Performance measures, other than TSR, in the Company’s performance shares were valued using target scores as of the grant date, the Company’s projected score for each measure for valuation dates within the performance period, and the actual score for vested awards. These scores were multiplied by the closing share price of AEP common stock on the vesting date or at year-end, as applicable, and by the number of shares or units then outstanding associated with the weight assigned to each performance measure, including shares or units due to dividend credits. The prorated portion of performance shares that vest due to the elimination of an executive’s position and separation from AEP service as the result of a consolidation, reorganization, restructuring, or downsizing, or under circumstances that give rise to Executive Severance Plan Benefits are treated as unvested until the end of the performance period for the purpose of calculating “CAP”. The unrestricted but not yet payable shares granted to Mr. Akins in 2023 were also treated as unvested shares for that year. The amounts deducted or added in calculating the equity award adjustments are as follows: |
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| [4] | The dollar amounts reported in column (d) represent the average of the amounts reported for the Company’s named executive officers (NEOs) as a group, excluding AEP’s PEOs, for the applicable year, in the “Total” column of the SCT in the applicable year. Refer to the SCT in the proxy statement for each year for further information. The names of each of AEP’s Non-PEO NEOs (i.e., excluding Mr. Fehrman for 2025, Mr. Fehrman, Mr. Fowke, and Ms. Sloat for 2024, Ms. Sloat for 2023, and Mr. Akins for 2020-2022) included for purposes of calculating the average amounts in each applicable year are as follows: 2025: Trevor I. Mihalik, Douglas A. Cannon, Robert B. Berntsen, Alicia R. Knapp, and Charles E. Zebula 2024: Charles E. Zebula, Greg B. Hall, David M. Feinberg, Therace M. Risch 2023: Charles E. Zebula, David M. Feinberg, Christian T. Beam, Peggy I. Simmons, Nicholas K. Akins, and Ann P. Kelly 2022: Julia A. Sloat, Ann P. Kelly, David M. Feinberg, Charles E. Zebula, Paul Chodak III, and Lisa M. Barton 2021: Julia A. Sloat, Lisa M. Barton, David M. Feinberg, Charles E. Zebula, Brian X. Tierney, and Mark C. McCullough |
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| [5] | The dollar amounts reported in column (e) represent the average amount of “CAP” for the NEOs as a group, excluding AEP’s PEOs for the applicable year, as computed in accordance with Item 402(v) of Regulation S-K. The dollar amounts do not reflect the actual average amount of compensation earned by or paid to the NEOs as a group, excluding AEP’s PEOs for the applicable year, during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to average total compensation for the NEOs as a group, excluding AEP’s PEOs for the applicable year, for each year to determine the “CAP”, using the same methodology described above in Note 2:
(A) The amounts deducted or added in calculating the total average equity award adjustments for non-PEO NEOs are as follows:
(B) The amounts deducted or added in calculating the total pension benefit adjustments for non-PEO NEOs are as follows:
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| [6] | Total shareholder return (TSR) reflects the value at the end of the year shown of $100 invested in the Company’s common stock at the closing market price on the last trading day immediately prior to the first year shown. This provides a cumulative TSR value that incorporates both the appreciation or depreciation of the Company’s stock price and the value of dividends, which are assumed to have been reinvested in additional AEP shares. TSR for this purpose was calculated and provided by Bloomberg L.P. as of December 31, 2025. Past performance is not a guarantee of future results. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| [7] | Represents the market-capitalization weighted average TSR of the S&P Electric Utilities (SP833) that was also used for the stock performance graph required by Item 201(e) of Regulation S-K in our Annual Report for the year ended December 31, 2025. This is an index of peer companies provided by S&P Dow Jones Indices LLC for which the TSR was calculated and provided by Bloomberg L.P. as of December 31, 2025. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| [8] | The dollar amounts reported represent the amount of net income reflected in the Company’s audited financial statements for the applicable year. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| [9] | Operating earnings per share is a non-GAAP financial measure. Exhibit A to the proxy statement for the corresponding year contains a full reconciliation of GAAP earnings per share to non-GAAP operating earnings per share for that year. For purposes of Item 402(v) of Regulation S-K, the Company has determined that operating earnings per share is the financial performance measure that, in the Company’s assessment, represents the most important performance measure used by the Company to link “CAP” of the Company’s NEOs to Company performance for the most recent four fiscal years. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| [10] | The equity award adjustments for each applicable year include the addition (or subtraction, as applicable) of the following: i.The year-end fair value of any equity awards granted in the applicable year that are outstanding and unvested as of the end of the year; ii.The amount of change as of the end of the applicable year (from the end of the prior fiscal year) in the fair value of any awards granted in prior years that are outstanding and unvested as of the end of the applicable year; iii.For awards that are granted and vest in the same applicable year, which was the case for 2024 awards for Mr. Fowke but not for any of the AEP’s other PEOs for any year, the fair value as of the vesting date; iv.For awards granted in prior years that had all applicable vesting conditions satisfied in the applicable year, the change in fair value as of the vesting date (from the end of the prior fiscal year); v.For awards granted in prior years that are determined to permanently not meet the applicable vesting conditions during the applicable year, which was the case for 2024 awards for Ms. Sloat and for Mr. Akins for 2023, a deduction equal to the fair value at the end of the prior fiscal year; and vi.The dollar value of any dividends or other earnings paid on stock or option awards in the applicable year prior to the vesting date that are not otherwise reflected in the fair value of such award or included in any other component of total compensation for the applicable year, of which there were none for any of AEP’s PEOs for any year. |
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| [11] | The amounts included in this column are the Change in Pension Value amounts reported in “Change in Pension Value and Nonqualified Deferred Compensation Earnings” column of the SCT for the applicable year. Neither Mr. Fehrman nor Mr. Fowke was eligible to participate in AEP’s pension plan during 2024. None of AEP’s PEOs received preferential or above-market earnings on deferred compensation for any of the years shown. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| [12] | The total pension benefit adjustment for each applicable year includes the aggregate of two components: (i) the actuarially determined service cost for services rendered by AEP’s PEOs during the applicable year (the “service cost”); and (ii) the entire cost of benefits granted in a plan amendment (or initiation) during the applicable year that are attributed by the benefit formula to services rendered in periods prior to the plan amendment or initiation (the “prior service cost”), of which there were none. In each case, the adjustments are calculated in accordance with U.S. GAAP. The amounts deducted or added in calculating the pension benefit adjustments are as follows:
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| [13] | The amounts deducted or added in calculating the total average equity award adjustments for non-PEO NEOs are as follows:
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| [14] | The amounts deducted or added in calculating the total pension benefit adjustments for non-PEO NEOs are as follows:
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