Klappa to retire, named Chairman Emeritus
Rhea-AI Summary
WEC Energy Group (NYSE: WEC) announced that Gale Klappa, 75, will retire from the board after the May annual meeting and will be named Chairman Emeritus. Klappa joined Wisconsin Energy in 2003, led the company through the 2015 Integrys acquisition, served as CEO and non-executive chairman at intervals, and presided over 23 consecutive years of dividend increases and sustained earnings growth. The board intends to appoint Scott Lauber, president and CEO since February 2022, as chairman following the annual meeting, subject to his election by shareholders.
Positive
- Board succession plan: Scott Lauber proposed as next chairman
- Company track record: 23 consecutive years of dividend increases
- Scale: serves 4.7 million customers across four states
- Balance sheet size: more than $49 billion of assets
Negative
- Leadership transition may create near-term governance uncertainty
Key Figures
Market Reality Check
Peers on Argus
WEC was up 0.42% while key regulated utility peers were mixed to negative (e.g., ETR -2.29%, PCG -0.92%, XEL -0.84%, ED -0.41%, PEG roughly flat at +0.08%), suggesting a company-specific tone around the leadership transition rather than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 04 | Dividend increase | Positive | -0.5% | Planned 6.7% dividend hike and detailed 2026 EPS guidance. |
| Nov 13 | Reliability award | Positive | -0.3% | We Energies named best in Upper Midwest for reliability. |
| Oct 30 | Earnings results | Positive | -1.7% | Q3 2025 earnings with higher revenues and reaffirmed guidance. |
| Oct 23 | Earnings notice | Neutral | -1.3% | Announcement of upcoming Q3 2025 results release and call. |
| Oct 16 | Preferred dividends | Positive | -0.9% | Declaration of cash dividends on preferred share classes. |
Recent positive or constructive announcements (dividends, earnings, awards) were followed by modest negative next-day moves, indicating a pattern of softer price reactions to generally favorable news.
Over the last few months, WEC reported multiple shareholder-friendly and operational updates. On Oct. 30, 2025, it posted higher year-to-date revenues and reaffirmed guidance, yet shares slipped modestly. Dividend-related announcements on Oct. 16 and Dec. 4, including a planned 6.7% quarterly dividend increase to $0.9525 per share and annualized $3.81, likewise saw small negative reactions. A reliability award on Nov. 13 also coincided with a slight decline. Today’s leadership transition arrives against this backdrop of generally positive fundamentals but muted to negative short-term price responses.
Market Pulse Summary
This announcement details an orderly governance transition, with long-time leader Gale Klappa retiring from the board and being named Chairman Emeritus while current CEO Scott Lauber is slated to become chairman. The release emphasizes continuity, citing 23 years of dividend increases, a customer base of 4.7 million, and assets above $49 billion. In evaluating this news, investors may focus on how the board’s structure, succession planning, and ongoing capital investment priorities evolve under Lauber’s expanded leadership role.
AI-generated analysis. Not financial advice.
Lauber to be appointed Chairman
Klappa joined Wisconsin Energy as president in April 2003. He was elected to the company's board of directors in December 2003. From May 2004, Klappa served as chairman and chief executive officer of Wisconsin Energy and We Energies. Under his leadership, the company successfully completed its 2015 acquisition of Integrys Energy Group, at which time he assumed those same roles for WEC Energy Group.
Klappa served as non-executive chairman of WEC Energy Group after retiring as chief executive officer in May 2016. In October 2017, Klappa resumed the role of chairman and chief executive officer to provide leadership and continuity following a medical issue that sidelined his successor. He returned to the non-executive chairman role in May 2024.
Klappa was the longest serving chief executive officer in company history.
Under his leadership, the company has achieved record financial performance — delivering 23 consecutive years of dividend increases, consistent earnings growth and unprecedented capital investments to enhance reliability for customers.
Klappa is a key leader in
Klappa intends to remain engaged in economic development matters following his retirement from the board of directors.
The board also voted to bestow on Klappa the honorary title Chairman Emeritus, effective after the company's annual meeting, in recognition of his exemplary leadership and decades of dedicated service to both the board and the company. This is the first time this honor has been bestowed on anyone in the company's more than 125 year history.
"On behalf of the board, the company, and the communities that have benefited from Gale's tremendous leadership, we extend our deepest gratitude," said Thomas Lane, independent lead director. "Gale's accomplishments over the years have been extraordinary, and his vision has helped position WEC Energy Group and its customers for long-term success. True to form, Gale isn't slowing down — we look forward to his continued involvement in economic development initiatives that will strengthen both our company and the region we serve."
The board plans to appoint Scott Lauber, president and chief executive officer, to the additional role of chairman following the company's annual meeting, subject to his election by stockholders in the annual director election. Lauber has served as president and chief executive officer of WEC Energy Group and as a member of the board of directors since February 2022. He joined the company in 1990 and has held a series of leadership roles of increasing responsibility throughout his career.
"Scott's leadership has been instrumental to the company's success. His experience, insight, and steady guidance will continue to serve the organization and the board in the years ahead," Lane said.
WEC Energy Group (NYSE: WEC), based in
The company's principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources and Upper Michigan Energy Resources. Another major subsidiary, We Power, designs, builds and owns electric generating plants. In addition, WEC Infrastructure LLC owns a growing fleet of renewable generation facilities in states ranging from
WEC Energy Group (wecenergygroup.com) is a Fortune 500 company and a component of the S&P 500. The company has approximately 32,000 stockholders of record, 7,000 employees and more than
View original content:https://www.prnewswire.com/news-releases/klappa-to-retire-named-chairman-emeritus-302668537.html
SOURCE WEC Energy Group
FAQ
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