DTE ENERGY CO 8-K

What Happened
DTE Energy Company announced on Feb. 4, 2026 (filed via Form 8-K on Feb. 9, 2026) that its Board’s Organization & Compensation Committee approved the 2026 performance measures and weightings under the company's Annual Incentive Plan (AIP) and approved 2028 performance measures and weightings for awards under the 2025 Long Term Incentive Plan (LTIP). The AIP measures differ by business (DTE Energy, DTE Electric, DTE Vantage) and assign targets for named executive officers that range from 75% to 125% of base salary. LTIP target award levels for 2026 grants (paid out in 2029) range from 190% to 525% of base salary; performance payouts for both plans can range from 0% to 200% of target.

Key Details

• AIP (2026) primary measure weights for DTE Energy executives: Operating EPS 20%, Cash from Operations 20%, Customer Satisfaction 15%, Employee Engagement (Gallup) 5%, Safety 10%, Utility Operating Excellence Index 30%.
• AIP weights vary by business (DTE Electric and DTE Vantage have different mixes; e.g., DTE Vantage places 40% weight on Business Optimization & Development Index).
• LTIP (2028 performance period: Jan 1, 2026–Dec 31, 2028): DTE Energy & DTE Electric PSUs weighted 80% TSR vs peers and 20% 3‑year cumulative operating EPS; DTE Vantage PSUs weighted 40% TSR, 10% 3‑yr EPS, 35% long‑range earnings growth, 15% long‑term business optimization.
• Award delivery and payout mechanics: AIP payouts = target % of salary × overall performance payout (0–200%); LTIP awards delivered as restricted stock and performance stock units (shares or cash at fair market value) with payouts 0–200%.

Why It Matters
These approvals define how executive pay will be tied to operating results and shareholder returns over the next three years. For investors, the measures and weightings indicate the company’s stated priorities (TSR and multi‑year operating EPS at the LTIP level; a mix of EPS, cash, safety, customer and operational indexes at the annual level). The disclosed target ranges and 0–200% payout caps show the potential upside and downside of incentive pay, which can affect future compensation expense, share dilution (from stock awards), and alignment between management incentives and shareholder outcomes.