Report: AEP CEO Tops Utility Pay With $36 Million Compensation

WASHINGTON, D.C. (WOWO) A new report examining executive compensation across the utility sector shows continued increases in pay for top industry leaders in 2025.

The Energy and Policy Institute found that investor-owned electric and gas utilities paid a combined 626 million dollars to their chief executives last year. The report also indicates average CEO compensation reached 12.4 million dollars, marking an increase of nearly 16 percent compared to 2024.

Among the companies analyzed, American Electric Power reported the highest total compensation package. CEO Bill Fehrman received approximately 36.6 million dollars in 2025, according to the Energy and Policy Institute.

The report attributes a large portion of that increase to stock-based incentives designed to reward long-term financial performance and shareholder returns.

Researchers also found that since 2017, average utility CEO compensation has increased by 47 percent, outpacing broader wage growth trends.

The analysis further notes that some utilities tie executive compensation to financial and regulatory performance metrics, including return on equity, which can influence company revenue structures.

The findings come as utility companies continue to operate within regulated rate frameworks, with compensation and pricing policies often reviewed by state regulators.

Find the full report by clicking here

The post Report: AEP CEO Tops Utility Pay With $36 Million Compensation appeared first on WOWO News/Talk 92.3 FM and 1190 AM.


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