NiSource Inc. (NYSE:NI), a $17.6 billion utility services company currently trading near its 52-week high of $38.83, disclosed a significant equity award to a top executive in a recent filing with the U.S. Securities and Exchange Commission. According to InvestingPro data, the stock has delivered an impressive 54.75% return over the past year, standing out in the utilities sector. On Tuesday, the Compensation and Human Capital Committee of NiSource's Board of Directors approved a one-time award for Executive Vice President, Strategy Risk and Chief Commercial Officer, Michael Luhrs.
The award, valued at $2 million on the date of grant, consists of 52,938 restricted stock units (RSUs). These RSUs are set to vest over a three-year period, with one-third vesting on January 22, 2026, another third on January 22, 2027, and the final 34% on January 22, 2028. Additionally, the award includes provisions for vesting in connection with certain separations from service. NiSource has demonstrated strong shareholder commitment with 38 consecutive years of dividend payments and a current yield of 2.82%.
This executive compensation arrangement reflects a move by NiSource to incentivize and retain key leadership within the organization. The details of the RSU Award Agreement, referenced as Exhibit 10.1, were previously incorporated by reference to an earlier NiSource Form 8-K filed on January 26, 2024. For deeper insights into NiSource's financial health and valuation metrics, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to over 30 key financial metrics and expert insights.
This executive compensation news comes amidst the broader context of corporate strategies to align executive interests with long-term shareholder value. Trading at a P/E ratio of 22.6x and characterized by low price volatility, NiSource's disclosure ensures transparency in its executive compensation practices, a key aspect of corporate governance that is closely monitored by investors and regulators alike. Discover more detailed analysis and insights about NiSource's valuation and future prospects in the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, NiSource Inc. has experienced significant financial activity. The company's third-quarter earnings per share (EPS) of $0.20 exceeded estimates, with a return on equity over the past twelve months reported at 9.9%. NiSource also reaffirmed its 2024 adjusted EPS guidance range of $1.70 to $1.74 and initiated a 2025 EPS guidance of $1.84 to $1.88.
Citi recently increased NiSource's price target from $30.00 to $36.00, maintaining a neutral rating on the stock. This upgrade followed the company's announcement of a substantial increase in capital expenditures from $1.6 billion to $2.9 billion. It's worth noting that this figure does not include potential growth from the datacenter segment, which is still under negotiation with customers.
BMO Capital Markets also revised its price target for NiSource, raising it to $38.00 from $37.00, and maintained an Outperform rating on the company. This adjustment came in the wake of NiSource's strong Q3 earnings and promising outlook.
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