Fortis Inc. Solidifies Leadership with Overwhelming Shareholder Approvals at 2025 Annual Meeting

Fortis Inc., Canada’s largest listed electric utility by market capitalization, concluded its 2025 Annual Meeting of Shareholders with resounding approvals of its leadership, governance, and compensation policies. The hybrid event, held on May 8, 2025, underscored the company’s enduring strength in regulated utilities and its commitment to sustainability, while also revealing subtle shifts in shareholder sentiment toward certain directors.

Director Elections Highlight Strong Majority, Minor Concerns

All 12 director nominees were re-elected, with most securing over 98% “for” votes. However, two candidates—Julie A. Dobson (4.38% withheld) and Jo Mark Zurel (2.96% withheld)—drew the highest levels of dissent among the group. While this is a minor deviation from near-unanimous support, it reflects potential scrutiny of their roles or strategic priorities. Notably, Zurel, who became Board Chair in 2023, has deep financial expertise but faces expectations to deliver on Fortis’ aggressive emissions-reduction targets.

Auditors and Executive Pay Win Overwhelming Support

Deloitte LLP was reappointed as auditors with 99.46% approval, a testament to the firm’s reliability in overseeing Fortis’ $75 billion asset portfolio. Shareholders also endorsed the “Say on Pay” vote with 94.19% approval, indicating confidence in executive compensation tied to long-term value creation. CEO David G. Hutchens, with 25 years in the energy sector, and CFO Jocelyn Perry, a 20-year utility veteran, lead a management team that has consistently delivered stable returns through regulated rate bases and infrastructure investments.

Financial Momentum and Regulatory Resilience

While Q1 2025 financial specifics were not disclosed, Fortis’ 2024 results—$12 billion in revenue and $75 billion in total assets—highlight its scale. The company’s regulated utility model, serving 3 million customers across North America and the Caribbean, provides a predictable cash flow. Recent regulatory wins, such as rate adjustments for Tucson Electric Power, further solidify its earnings visibility.

Sustainability as a Strategic Pillar

Fortis aims to reduce emissions by 75% by 2035, a target that aligns with global ESG trends. Its portfolio includes renewable projects like solar and wind farms, alongside modernizing grid infrastructure. This focus not only mitigates regulatory risks but also attracts ESG-conscious investors, a growing segment in utility equities.

Conclusion: A Stable Utility Play with Long-Term Upside

Fortis’ shareholder meeting results reaffirm its position as a leader in regulated utilities, backed by strong governance and financial discipline. The minimal dissent in director elections is unlikely to disrupt its trajectory, especially as Zurel and Hutchens continue executing on growth and sustainability goals.

Investors should note Fortis’ dividend yield of 4.2% (as of May 2025) and its track record of consistent payouts, bolstered by stable cash flows from regulated assets. The company’s hybrid business model—combining North American dominance with Caribbean expansion—offers geographic diversification, reducing regional risk.

While the stock has underperformed the S&P 500 by 5% over the past year, its valuation at 14.5x trailing earnings remains attractive compared to peers. With $2 billion in annual capital spending on grid upgrades and renewables, Fortis is well-positioned to capitalize on the global shift to clean energy.

In summary, Fortis Inc. presents a compelling investment opportunity for income-focused investors seeking stability and ESG alignment, provided they are comfortable with the regulated utility sector’s slower growth profile. The 2025 shareholder approvals further validate its path to long-term success.