American Electric Power Company, Inc

In 2024, AEP's Executive Vice President, Chief Information and Technology Officer received a total compensation of $2,926,088. This package comprised a base salary of $684,906 and significant stock awards amounting to $1,607,665, while incentive plan compensation was $536,999[^1^]. The compensation structure largely awards performance, as evidenced by the alignment of stock awards and incentive plans emphasizing growth and operational efficiency. This reward framework supports AEP's broader operational goals, including a focus on technological integration and innovation within the energy sector.


Historically, AEP has maintained a consistent pattern of rewarding executive roles that are closely tied to critical operational enhancements. In 2016, the Chairman and CEO received a total compensation of $11,472,740, marked by notable stock awards worth $6,720,027 and incentive compensation of $3,000,000[^2^]. This highlights the company's commitment to aligning executive rewards with shareholder value and company performance, a stance that continues to yield positive dividends as AEP enhances its industry position.

AEP's financial performance supports its compensation strategies. Recent reports revealed a sustainable growth trajectory, with a 10.6% commercial load increase in 2024, further driving a 7% rise in operating earnings over the previous year[^3^]. AEP’s strategic initiatives, like its recent pursuit of grants for advanced nuclear site exploration, exhibit its proactive approach in staying ahead in the energy domain[^4^].

Furthermore, the company’s inclusion in the JUST 100 list for the fifth consecutive year underlines its standing as a leader in corporate responsibility[^5^]. AEP’s dedication to ethical and responsible practices dovetails with its operational results, where the first quarter of 2025 saw earnings per share surpassing estimates, reflecting robust demand and strategic execution[^6^].

AEP’s stock, priced at $98.59 as of the latest data, indicates a market understanding of its solid operational fundamentals and strategic foresight[^7^]. Its earnings consistently meet or exceed expectations, which is a testament to the successful alignment of executive incentives, corporate strategy, and shareholder interests, propelling continued growth and sustainability in the electric services sector.

[^1^]: [Source](https://www.sec.gov/Archives/edgar/data/4904/000000490425000043/0000004904-25-000043-index.htm)
[^2^]: [Source](https://www.sec.gov/Archives/edgar/data/4904/000119312519072746/0001193125-19-072746-index.htm)
[^3^]: [Source](https://www.prnewswire.com/news-releases/american-electric-power-aep-reports-2024-earnings-results-301931585.html)
[^4^]: [Source](https://www.prnewswire.com/news-releases/american-electric-power-aep-seeking-grants-to-assist-with-advanced-nuclear-site-exploration-in-indiana-and-virginia-301931590.html)
[^5^]: [Source](https://www.prnewswire.com/news-releases/american-electric-power-aep-named-one-of-americas-most-just-companies-for-fifth-consecutive-year-301931578.html)
[^6^]: [Source](https://www.reuters.com/business/energy/american-electric-power-beats-profit-estimates-expects-minimal-tariff-impact-2025-05-06)
[^7^]: [Source](https://www.zacks.com/stock/news/2463313/american-electric-s-q1-earnings-beat-estimates-revenues-increase-y-y)