Exelon Corporation is a Fortune 100 energy company that powers millions of homes and businesses across the United States. One of the most crucial aspects of any large corporation is its board of directors, the group of individuals responsible for setting the company's direction and making key decisions. In this article, we will delve into the details of the Exelon board, exploring their history, composition, responsibilities, successes, challenges, controversy, and future outlook.
The Exelon Board of Directors is comprised of 13 members, all of whom possess a wealth of experience and knowledge in various industries. The current board includes: Christopher M. Crane (CEO of Exelon Corporation), John W. Rogers Jr. (CEO of Ariel Investments), and Ann C. Berzin (Managing Director of Warburg Pincus). Other notable members include Patricia K. Collawn (CEO of PNM Resources), Roger W. Sant (Chairman Emeritus of The AES Corporation), and Mayo A. Shattuck III (Former Chairman and CEO of Constellation Energy Group).
Christopher M. Crane has been the CEO of Exelon Corporation since 2012 and has been with the company for over 20 years. Under his leadership, Exelon has become the largest producer of clean energy in the United States. John W. Rogers Jr. is the founder and CEO of Ariel Investments, a Chicago-based investment firm that manages over $13 billion in assets. He is also a board member of McDonald's Corporation and The New York Times Company.
Ann C. Berzin has over 25 years of experience in private equity and investment banking. She joined Warburg Pincus in 2000 and has been a Managing Director since 2006. Patricia K. Collawn has been the CEO of PNM Resources since 2011 and has over 30 years of experience in the energy industry. Roger W. Sant is the Chairman Emeritus of The AES Corporation, a global power company, and has been a member of the Exelon Board of Directors since 2009. Mayo A. Shattuck III served as the Chairman and CEO of Constellation Energy Group from 2001 to 2012 and has been a member of the Exelon Board of Directors since 2012.
The Exelon Board of Directors has a long and complex history. The company itself was formed from the merger of two large energy companies, PECO Energy and Unicom Corporation. The board initially consisted of a mix of executives from both companies, and it has evolved over time to include a diverse group of leaders from various sectors. In recent years, the board has placed a strong emphasis on gender and racial diversity, with women and people of color making up over 40% of the current members.
One notable change in the Exelon Board of Directors occurred in 2018, when the company announced that it would separate the roles of CEO and Chairman of the Board. This decision was made in response to shareholder concerns about the concentration of power in a single individual. The move was seen as a positive step towards greater transparency and accountability within the company, and it has been praised by corporate governance experts.
The Exelon Board of Directors has a wide range of responsibilities, including setting the company's strategic direction, overseeing financial performance, and ensuring compliance with laws and regulations. The board is also responsible for hiring and evaluating the performance of the CEO and other top executives.
In addition to these responsibilities, the Exelon Board of Directors also plays a crucial role in managing risk. The board must identify and assess potential risks to the company, and develop strategies to mitigate those risks. This includes monitoring the company's exposure to financial, operational, and reputational risks.
Another important role of the Exelon Board of Directors is to ensure that the company operates in an ethical and socially responsible manner. The board must establish and enforce policies and procedures that promote ethical behavior, and ensure that the company is meeting its obligations to stakeholders, including employees, customers, and the communities in which it operates.
The current board members of Exelon Corporation come from diverse backgrounds and industries, including finance, energy, healthcare, and technology. This diversity helps to bring different perspectives and skill sets to the table, allowing for more robust decision making.
One of the board members, John W. Rogers Jr., is the founder and CEO of Ariel Investments, a Chicago-based investment firm that focuses on small and medium-sized companies. Another board member, Calvin G. Butler Jr., is the CEO of Baltimore Gas and Electric Company, a subsidiary of Exelon that provides gas and electric services to customers in central Maryland.
In addition to their professional backgrounds, the board members also bring a wealth of experience in areas such as corporate governance, public policy, and community engagement. For example, Mayo A. Shattuck III, a board member since 2014, has served on the boards of several other companies and organizations, including the Baltimore Symphony Orchestra and the Kennedy Krieger Institute, a nonprofit that provides services to children with disabilities.
New members of the Exelon Board of Directors are selected through a rigorous process led by the Nominating and Corporate Governance Committee. The committee evaluates potential candidates based on their experience, skills, and backgrounds and seeks to ensure a diverse mix of individuals. Once recommended by the committee, new members are elected by the existing board.
In addition to the evaluation process, Exelon also considers the potential candidate's reputation and ethical standards. The company values individuals who demonstrate integrity and a commitment to ethical behavior in their personal and professional lives.
Furthermore, Exelon encourages its board members to participate in ongoing education and training programs to enhance their knowledge and skills. The company believes that continuous learning is essential for effective governance and leadership.
The Exelon Board of Directors seeks individuals with a strong track record of professional excellence, leadership, integrity, and commitment to diversity and inclusion. Potential candidates should also possess expertise in areas relevant to Exelon's business, such as financial management, energy policy, or technological innovation.
The Exelon Board of Directors works closely with other executive committees, such as the Audit Committee and Compensation Committee. These committees are responsible for overseeing specific areas of the company's operations, such as financial reporting or executive compensation. The Board of Directors also interacts with external stakeholders, such as investors, regulatory agencies, and community organizations.
The Exelon Board of Directors has made several key decisions in recent years that have shaped the direction of the company. In 2016, the board approved the acquisition of Pepco Holdings, a regional energy company serving the mid-Atlantic region. The acquisition expanded Exelon's footprint and customer base significantly. Additionally, in response to climate change, the board committed to reduce greenhouse gas emissions by 15% by 2022 and achieve net-zero emissions by 2050.
Like any large corporation, Exelon has faced various challenges in recent years. One of the primary challenges has been the shift towards renewable energy sources and the decline of traditional fossil fuels. The board has responded by investing in cleaner energy sources, such as wind and solar, and by developing innovative technologies to improve efficiency and sustainability.
As mentioned earlier, the Exelon Board of Directors has made a concerted effort to increase diversity in recent years. This has included inviting new members with different backgrounds and experiences and ensuring that women and people of color are well represented. In addition to promoting diversity, the board has also sought to incorporate more expertise in areas such as cybersecurity and digital innovation.
The composition of a board of directors can have a significant impact on a company's decision making and culture. The diverse backgrounds and perspectives of Exelon board members have led to more thoughtful and nuanced decision making. This diversity has also helped to create a culture of openness, respect, and inclusivity.
New members of the Exelon Board of Directors bring fresh ideas and perspectives, which can influence the company's overall strategy and performance. The recent emphasis on diversity and expertise has helped to ensure that the board is well equipped to navigate the complex and ever-changing energy landscape.
Corporate governance refers to the systems and processes that govern how a company is run and how decisions are made. At Exelon, corporate governance plays a critical role in ensuring that the board makes informed and ethical decisions. The board is guided by a set of principles that emphasize transparency, accountability, and responsibility towards shareholders and other stakeholders.
To be a successful board member at Exelon, one must possess a combination of skills, experience, and personal qualities. A successful board member should have expertise in areas relevant to the company's business, strong communication and leadership skills, a commitment to diversity and inclusion, and a high level of integrity and ethical conduct.
The future outlook for the Exelon Board of Directors is bright. The board is committed to fostering a culture of diversity and inclusion, and to ensuring that its members possess the expertise and skills necessary to navigate the complex energy landscape. The board will continue to evolve and adapt to meet the challenges of the future.
Comparing Exelon's board to those of other utility companies can provide valuable insights into best practices and innovation. Some other utilities with notable boards include NextEra Energy, which has a strong focus on renewable energy, and American Electric Power, which emphasizes diversity and community engagement.
Investors and stakeholders play a critical role in shaping the decisions of the Exelon Board of Directors. These groups may voice concerns or provide feedback on the company's strategy and performance, which the board takes into account when making decisions. The board is committed to maintaining open and constructive channels of communication with all stakeholders.
As with any large corporation, Exelon has faced some controversies and conflicts involving its board members. One notable example was the resignation of former board member John W. Rowe in 2016, following criticism of his involvement with a fossil fuel advocacy group. Exelon takes any conflicts or controversies seriously and works to address them in an ethical and transparent manner.
External factors such as legal regulations and market trends can have a significant impact on the decision making of the Exelon Board of Directors. For example, regulations governing greenhouse gas emissions may lead the board to invest in cleaner energy sources. Similarly, changes in market trends such as the rise of electric vehicles may necessitate new approaches to energy generation and distribution.
In conclusion, the Exelon Board of Directors is a diverse and experienced group of individuals responsible for shaping the direction of one of the largest energy companies in the United States. Their history, composition, responsibilities, successes, and challenges paint a complex and nuanced picture of corporate governance and leadership. As Exelon continues to evolve and adapt to new challenges, the board will play a critical role, ensuring that the company remains a leading force in the energy sector.
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