Good afternoon, everyone. I'm Mike Callahan, and I'm Vice President of Investor Relations for Duke Energy. Welcome to the 2017 Annual Meeting of Shareholders. This year, we are broadcasting this meeting and the toll-free number that we provided in advance. Today's meeting is being recorded and will be available through our website. Our Chairman, President, and CEO, Lynn Good, will call the meeting to order and facilitate the business portion of the agenda, which includes the election of directors, four other management proposals in the company, followed by a question and answer session. You may submit questions using the text box concerning factors that could cause future results to differ from this forward-looking information. A reconciliation of non-GAAP financial measures can be found on the investor relations section of the Duke Energy website. Now, it is my pleasure to introduce Lynn Good. Lynn?
The 2017 Annual Meeting of Shareholders. As we begin, I'd like to take a moment to talk about our new format. We are very excited to host our first online. The opportunity to participate more easily in the governance of the company. Through the use of technology, including the web and telephone, we've designed today's and accountable to our shareholders. Again, it is my pleasure to welcome everyone. With that, directors is gathered today, and like all of you, participating via the web portal, along with our independent auditors, appointed Broadridge Financial Solutions to act as Inspector of Elections. Jan Castillo from Broadridge is here with us today and has taken officer and corporate secretary. Today, she also acts as secretary of this meeting. Julie will and votes represented in person or by proxy at this meeting. Julie, let me turn it to you.
Lynn, thanks. Sixth, 2017, Duke Energy Corporation had outstanding and entitled to vote 699,883,000, each of which is entitled to one vote. There are here represented by proxy 596,616,295 shares of the corporation's common stock, which constitutes 85.24% of the total. The Inspector of Elections will include the votes, if any, of the shareholders voting through the web portal today.
Julie, thank you. Legal notice is now lawfully convened for the transaction of business. You should see a vote button on your computer screen. The polls are now open, and you can cast your ballot at any time. Let's proceed with the matters to be voted on. The first management proposal is the election of the board of directors. We have a declassified board. We are at the annual meeting. Our elections also require nominees to receive a majority vote rather than a plurality to be elected. These nominees are presented for the purpose of voting for their election as directors. Michael Browning, chairman. Michael Angelakis, Chairman and Chief Executive Officer of Atairos Management. Chairman of Edison International. Dan DiMicco, Chairman Emeritus, retired President and Chief Executive Officer of Nucor Corporation. Vice President and Chief Financial Officer of Northeast Utilities.
John Herron, retired President, Chief Executive Officer and Chief Nuclear Officer of Entergy Nuclear. Officer at First Citizens BancShares. Bill Kennard, Non-Executive Chairman of Velocitas Partners. Maureen McHugh, retired Senior Vice President and Chief Executive Officer of Amtrak. Carlos Saladrigas, Chairman of Regis HR Group. President and Chief Executive Officer of Piedmont Natural Gas. Bill Webster, retired Executive Vice President of Power Operations. They have been nominated for election as directors for one-year terms expiring in 28 and acknowledge Anne Maynard-Gray, retired Vice President of ABC and President of Diversified Publishing- Retirement Policy and Corporate Governance Principles, and is retiring as a director at the end of today's meeting.
I would like to thank Anne for her 20 years of outstanding service to-. There are three additional management proposals being presented for Deloitte & Touche as the corporation's independent registered public accounting firm for 2017, as stated on page 36 of the proxy statement. Proposal three is a vote on an as disclosed on page 38 of the proxy statement. Proposal four is a vote on an executive compensation as disclosed on page 67 of the proxy. Proposal five is to eliminate the supermajority voting provision statement. Also to be presented are three proposals we have received from our shareholders, which Julie will now-. First shareholder proposal, identified as Proposal six in the proxy statement beginning on page 69. Expenses
The board of directors has recommended a vote against this proposal. Presenting on behalf and the Benedictine Sisters of Virginia is Susan Makos, Investments. Ms. Makos elected to pre-tape the following statement.
Vice President of Mercy Investment Services. On behalf of Mercy and Virginia, I hereby move proposal number six, a proposal regarding federal lobbying expenditures, including expenditures that fund lobbying through trade associations which actively lobby on issues. Transparency on corporate spending to influence public policy, including of lobbying expenditures in a comprehensive public report, is essential so that shareholders can determine if corporate assets are being used to promote public policy objectives. It is reported that Duke in 2015 and 2016 spent a total of more than $12 million on federal lobbying. Its new public disclosure report does not disclose. The report on its website discloses only a total dollar amount of associations the company supports. As a result, shareholders do not have information to understand the public policy objectives being pursued by these lobbying payments. For example, Duke belongs to the Business Roundtable, $24 million lobbying in 2016.
Duke is also a member of the American Legislative Exchange Council, which has attracted While our company's own annual report notes the company's commitment to expanding its investments in clean renewable energy. More than 100 companies, including peers such as American Electric Power, Ameren, and Entergy, have publicly announced that Duke discontinued participation in political or lobbying activities that serve company interests. Rather, it requests There's a simple saying that what gets disclosed gets managed. In the proxy, Duke states that it is committed to adhering to the highest However, our company opposes this proposal and is only providing minimal disclosure on lobbying on its website. Duke's new disclosure does not meet the leading practice of providing detailed disclosure resources. In closing, we urge all shareholders to vote for this proposal.
The shareholder proposal, identified as proposal seven in the proxy statement beginning on page 71, concerns climate change and an analysis using a two-degree scenario. The board of directors has recommended on behalf of the proponents, New York State Common Retirement Fund, and Praxis Value Index Fund is Patrick Dougherty, Director of Corporate Governance for the State of New York, Office of the State Comptroller. Mr. Dougherty elected-
Mr. Chairman, fellow shareholders, my name is Patrick Dougherty, and I am speaking today on behalf of the New York State Common Retirement Fund to introduce our fund's resolution on the company's portfolio of the implementation of the climate change goals embodied in the Paris Agreement on global warming. In November 2016, the Paris Agreement rise well below two degrees Celsius will begin to shape national policy decisions. As long-term shareholders, opportunities presented by global efforts to keep global temperatures within acceptable boundaries. In June 2016, carbon transition risk, based on scenarios consistent with the Paris Agreement, and noted the high carbon risk. The second largest CO2 emitter in the U.S. and has not yet set a science-based greenhouse gas reduction goal and does not provide information on its needs that are consistent with the Paris Agreement or a two-degree scenario.
As investors, we are concerned that Duke Energy is not properly accounting for the risk of its current still planning future investments in fossil fuel-based generation. We believe that a two-degree scenario announcement will generate a more complete picture of current and future risks and opportunities than business as usual planning fund, holder of 1,000,899 climate change proposal number seven found in your proxy materials. Thank you.
8 in the proxy statement, beginning on page 73, seeks a report on the public health risks associated. Recommended a vote against this proposal. Presenting this proposal on behalf of the proponents, Andrew Behar and the Daughters of Charity, Province of St. Louise. Mr. Behar joins us live by telephone.
Contaminating water and making cancer risk in nearby communities. Duke Energy has two high greenhouse gas coal plants. These plants emit carbon pollution into the environment and incur $ millions in cost more by burning coal, resulting in releases of sulfur dioxide, nitrous oxide, mercury, and particulate matter into these nearby communities. These pollutants can cause serious health problems such as asthma, lung disease. Burning coal also releases much more carbon dioxide than other energy sources, driving climate change, leading to health harms and widespread of warm weather, pests, and diseases. Climate change also intensifies extreme storms and flooding that threaten the reliability and safety of coal. In fact, Duke's coal ash spill at H.F. Lee occurred after flooding from Hurricane Matthew. Climate change also harms the broader economy, resulting in supply chain disruptions, uncertainty.
As far as using. However, he has authorized our Inspector of Elections, Jan Castillo, to read his statement in the event of technical problems. Jan?
The Duke Energy shareholder proposal number 8, asking the company for a report on the public health risk of Duke Energy's coal use. This resolution was submitted on behalf of As You Sow. Coal produces well-established harms to public health, including water contamination, poor air quality, and climate change, which is laced with heavy metals such as arsenic, lead, and mercury, and which can contaminate water and raise cancer risk. Prior coal ash spills since 2014 at the Dan River and the H.F. Lee coal plants, incurring brand damage, harming waters and the environment. Coal disproportionately impacts low-income communities of color. Burning coal results in release of sulfur dioxide, nitrous oxide, mercury, and particulate matter into these nearby communities. These pollutants can cause serious health problems like life expectancy and increased infant mortality.
Burning coal also releases much more carbon dioxide. Challenges due to extreme temperatures, declining air and water quality, and the spread of warm weather pests and diseases. Climate change also intensifies extreme storms and flooding, and increases the risk of water contamination. In fact, Duke's coal ash spill at H.F. Lee occurred after flooding from Hurricane Matthew, resulting in both chain supply disruptions. Despite all this, Duke remains committed to coal. As of 2013, Duke Energy burned the second highest carbon pollution emissions of any U.S. power producer, which is why shareholders request that Duke Energy analyze the public health impacts resulting from the coal-related air and water pollution it causes in communities adjacent to Duke's coal operation, and provide a financial analysis of the cost of the company of coal-related public health harms, including potential liability and reputational. Item number eight.
Mr. Behar, we apologize for those technical difficulties. Thank you, Ms. Castillo. Proposals before us at the annual meeting. If you have not already voted your shares or if you'd like to change your vote, you may do so by clicking on the Voting button on the web portal open for the next several minutes until the question and answer session begins. Truly, thank you. I'm pleased to share a brief business update. For the past 113 years, lives 24 hours a day, seven days a week. Our customers count on us for safety, for security, and businesses rely on us to power the economy every day. I'm proud to say that Duke Energy did just that in 2016. It was a pivotal year for our company. With safe, reliable energy. We also took positive steps to lay the foundation for our continued success.
I want to share updates on four broad areas and portfolio transition, our long-term strategy, and the aspirations we have for Duke Energy. Our operational performance, which remains vital for our continued communities that we serve. Let's start with financial results. We had a very strong year in 2016, delivering strong earnings growth in our core businesses. We also continued to increase our dividend. We have paid a quarterly dividend, a tradition we are very proud of and proud to continue as we return value to you, our shareholders. Last year, we paid $2.3. To mirror our earnings growth going forward. We appreciate that investors view us as a solid long-term holding, and the strength of our dividend is key to that. Positioning our company for the future.
We exited our Latin American business and the volatility that it brought to our financial. It was an important step as we look to deliver more predictable, stable earnings and growth. Greater scale to our natural gas platform. Our integration is well underway, and it truly has been a textbook process as we welcome our new Piedmont colleagues and complete. Today's Duke Energy represents a premier regulated energy company focused on delivering value for our customers and growth for our investors. Any discussion of our strategy starts with our customers. We have spent a lot of time listening to them, and we're focused on creating smarter solutions that give them more control and convenience. We're connecting with them through new tools like outage alerts and usage updates. The menu of energy-saving tips, programs, and incentives.
This is just the start. As we transform, we will customize solutions and new ways for them to communicate with us. For many customers, it's about more than products and services. They are also keenly interested in how we make and distribute power, especially as it relates to emissions. We are responding
Earlier this year, we outlined our updated five-year $37 billion growth capital from last year. Since we announced our updated plan in February, our team has been hard at work, and we look forward to updating you on our progress during our next. Our five-year growth capital plan lays the foundation, we are looking well beyond a five-year horizon. Today, I see where we plan to take the company. First, building a modern delivery system is key to providing. That's why we're investing $25 billion in our energy grid over the next 10 years. Our grid is the largest in the U.S. and a critical part of our comprehensive grid investment is Power/Forward Carolinas, our $13 billion plan to upgrade and strengthen our system here in North Carolina.
$11 billion over the next decade to generate cleaner energy through natural gas and renewables and continue our move to a lower carbon future. Natural gas is essential to taking carbon out of our business, we project it over the next decade. In that same time frame, renewable energy, such as hydro, wind, and solar, will grow to a powerful combination in our effort to lower carbon. By retiring coal plants and bringing on more natural gas and renewables, we have already reduced our carbon emissions by nearly. Today, we are among the top five companies in terms of renewable energy capacity, and we're committed to doing more. We've set a new goal to reduce our carbon emissions by 40%.
Third, we're expanding our natural gas infrastructure to supply our plants and customers with this cleaner fuel. With Piedmont in the fold, we now operate a 5-state gas distribution business and have investments in mid-eastern U.S. Through these investments, we will double B26. To transform Duke Energy and deliver the experience our customers demand, ambitious plans like these need the support of our stakeholders. Policymakers with them to modernize recovery mechanisms that will promote smart investment in safe, reliable, and affordable infrastructure in our states. A few highlights on our operational performance from last year. Operational excellence remains foundational to our success and performance from 2015. Again, in 2016, Duke Energy led the industry in employee safety, and we're determined to continue setting the pace. Our safety performance improved despite demanding weather and a record-breaking 2016, and increased their capacity factor for the 18th consecutive year.
We're bringing the same level of commitment to environmental stewardship by 17% in 2016. We remain on track to recycle 80% of our solid waste. This progress closing our coal ash basins. Last year, we excavated and stored approximately 5 million tons of ash in North Carolina. We also published ash basin closure plans across our states and announced two ash reprocessing locations for an issue, helping protect communities, the environment, and our customer bills. I want to call home. We know that every dollar counts. This focus on investing in our energy grid, cleaner services our customers value. This is our vision. We're charging ahead with great confidence. I'm glad to have had the opportunity to provide that brief business update. Before getting to your questions, I'd like to provide the Inspector of Elections report.
Lynn, thank you. Based on the proxies, reason elected by over 93% of the shares voted. The ratification of Deloitte & Touche as the corporation's independent registered public accounting firm for 2017 has been approved with over 97% of the vote. The advisor with over 82% of the vote. Proposal four addresses the frequency of the vote on our named executive officer compensation. Nearly 87% should occur every year. The vote on the amendment to the corporation's certificate of incorporation has failed, receiving the support of approximately 59% of the corporation's outstanding shares. In order to pass, the amendment required approval of 80% of the outstanding shares of the corporation. The share of the vote. The shareholder proposal concerning climate change and an analysis using a two-degree scenario has failed, receiving 45% of the vote. The shareholder proposal seeks has failed, receiving 26% of the vote.
Julie, thank you. The final report of the Inspector of Elections is ordered. Now I'd like to take time to answer some of your questions. Mike, I'll turn it to you.
For the past, I would like Lynn to address. In addition, we continue to receive questions live via the web portal here today. We know it's important that your voices are heard. The way that I'm going to do this today, Lynn, is I'm going to read the questions exactly as they've been submitted. We're going to walk through the questions. I'm going to log on here. We'll clearly get to as many questions as we can. Any questions we don't get to, we're going to post responses to on our website very soon.
Sure.
Let me get in here and see, we can have a discussion. Just let me go through here for a second. The first question's on retiree benefits. We certainly have a lot of retirees. Retirees continue to remain shareholders of the company while under retirement and enjoy receiving that dividend. The question that we received from the shareholder was, "What measures are being taken annually to sustain, regardless of the plan on which they retired under? Solvency and longevity is my main concern for this question. Thank you.
Mike, thanks for that question. I would love to begin. Have contributed to Duke Energy over the years. We are where we are today because of the work and the diligence of the employees of Duke over many decades. I understand the importance of the pension. This is the livelihood of our retirees, and we take our response. Plans are in very strong financial shape. They are funded above 100%. We continue to closely monitor the investment to those investments as we go forward. Our work will continue as we continue. That's responsibly. We produce, every year, a report on the retiree plans to give our retirees information about the assets and the plans themselves, and hope that'll be helpful to them as well. Thank you for that question.
Very well. Let me move into the second question. We have one here that is related to merger savings. As you know, we've been through several mergers. We've had the Cinergy merger. We've had Progress Energy recently with Piedmont. In fact, I came to know you a decade ago with the Cinergy merger. The specific question here is on the progress and cost of the Duke Progress merger versus the projections prior to the merger.
You know, Mike, the merger with Progress, we're about to celebrate a five-year anniversary. It was in 2012 when we closed. We've had five years of great experience, benefits for customers, for investors from the Progress merger. I look at the synergy savings that we've achieved from the merger. We originally projected three to four, that's efficiencies. That's doing our work more collaboratively and delivering those benefits to not only investors, but to our customers as well. We have also used joint dispatch savings, which is a fancy word for fuel savings. Almost $700 million of savings at the start of the merger. Exceeded that amount within a year. In terms of costs, there were costs, integration, systems, those types of things. They ran about $300 million a year for the first four years after the merger.
Great success. I think Duke Energy is stronger today. It delivers benefits to both customers and investors.
Okay, I see we have several questions here related to coal ash. I'm going to move on to that. Let's cover that as a topic. Questions. Health concerns, cost recovery. Let me start with the first question here. Again, I'm simply going to read these exactly as they've come in. Toxic coal ash at 6 current sites. This not only puts the health of the residents of those communities at risk, but also increases the likelihood that Duke will be subject to ongoing litigation and financial penalties. Why isn't the company permanently solving these problems, dry- lined storage away from our waterways?
Mike, that's a very clear question about storage methods. I want to begin by saying Duke Energy is committed to safe long-term storage of ash. It's imperative. Would point to a couple of things that I think are really important here. We are hard at work, diligently, vigorously complying with rules at the federal level and at the state level that govern the way ash can be stored on a long-term basis. The Environmental Protection Agency that, after careful study and analysis, has established standards by which ash basins are to be closed as we move forward. I think that's important to point to that EPA. Be the primary standard used throughout the U.S. for safe long-term storage of basins. There are a couple of key points. First of all, the EPA has concluded over and over again, in this most recent.
Have also concluded that storage of ash in place with monitoring is a safe method of storage. It doesn't always have to be about excavation. Both now. Mike, it's important to recognize that excavation is not always warranted or wise. If you think about it, picking up and moving ash, impact to the environment from the emissions, locations where you have to find to store the ash, and the cost are all considerations that have to be front and center as we deal with this complex issue. We've put together a plan which we believe is a smart combination of storage in place with monitoring as well as excavation. Our commitment in all events, as I started this, protects the environment and protects our customers. It's imperative for Duke Energy.
That question also had a mention about.
Sure. We have been working with the neighbors around our basins for the last several years, consistent with the laws in North Carolina, to connect them to municipal water supplies or to filters to remove any uncertainty that they may have around water in their private wells. Increasing scientific evidence that the basins are not impacting the private wells. There was an independent study just last year by Duke University that made this very clear. In fact, identified that many of the substances that are often spoken of are lined up. So we are continuing our work with the neighbors, with the state around this important plan to put the municipal water lines in place or the filters. At the same time, as we spoke a moment ago, we're continuing our work around long-term storage in a manner that'll be safe.
Switch gears here a little bit. I've got a question. Looks like it's continuing on the coal ash theme. It's around cost recovery. The question here is, why should ratepayers pay the full cost of excavating coal ash across the state when federal laws for years? Ratepayers have also benefited from cheaper energy as well. Is it appropriate to place the entire cleanup burden on ratepayers? Should not shareholders also bear at least some of the burden of these costs?
Mike, top of mind. I'd like to start this question by making it very clear that any costs relating to the Dan River spill, the repair, the cleanup of the river itself, the fines, the penalties, none of those costs will be costs. We are accountable for that spill, and we've taken responsibility. Shareholders have borne the costs of Dan River. Of long-term storage of ash. It is an issue of importance, not only here in North Carolina, but really around the U.S. I spoke a moment ago about the fact there are 700 basins, where ash has been stored over decades in accordance with standards that existed in the '70s and '80s and '90s, and be working on compliance with these new rules. The EPA rule around long-term storage.
As we do that, we are incurring costs that will result in long-term safe storage of the ash. If you look at traditional rate-making techniques, the way the price of electricity has been set, it includes the cost of building the power plants, operating power plants, closing them. It includes the cost of fuel and also waste products. This is a view and oversight of the Regulatory Commission, and ash disposal and storage costs would be considered as part of that process. Ultimately, the decision is the decision of the North Carolina and other state regulatory commissions, which we will request that will occur over time. Our commitment is not only long-term safe storage, but keeping our eye on affordability and efficiency in a way that makes sense for customers because we understand the importance of affordable power.
I'm going to move on to, I guess, clean energy, those type of topics. The question here is related to gas-fired generation. Duke is proposing 19 new gas plants across North Carolina and South Carolina territory. In order to meet the goals of the Paris Agreement, we need to rapidly decarbonize our electricity sector and limit methane pollution. Doesn't this unnecessary build-out put the company at risk of stranding $billions in capital assets?
Every day, certainly decisions around investment and generation. Natural gas is an essential part of a long-term balanced solution for delivering reliable energy. The retirement of coal and the introduction of natural gas has been critical to our ability to lower carbon emissions by 30%. It's half of coal. We've also introduced renewables as part of that balanced mix and see that increasing as we go forward. Finding the appropriate balance in the portfolio to main. We'll continue to focus in that way. We have recently identified a target of a reduction of 40% of carbon by 2030. That solution as well.
Here's another one on, again, generation mix, clean energy. It's around coal. Given the potential risks, regulatory, legal, and reputational presented by the company's coal plants and also its generation of coal ash route, its use of coal to generate power.
Our journey or track record on modernization of generation, I believe, is very good and very clear. We have retired and along with that, have reduced our carbon emissions by 30%. As we look forward, I said a moment ago that we see a target of that through further retirement of coal, introduction of natural gas and renewables. Our objective is to maintain affordability, reliability, and clean energy as we go forward. Our work is never done. We believe we're on a commit.
Let me say, I'll ask one more question on this topic. It's around our reporting related to this. Why would you not issue reports on climate change, coal use, and lobbying? What are you hiding?
We take our governance responsibilities very seriously. The comment about climate change and coal use, let me address that, Mike, by saying that we produce a very comprehensive. Encourage investors, shareholders to review that report closely. I think you'll find a lot of very valuable information and how we're managing that, our recycling programs, and really a variety of things that will address the questions that you have in this area. On lobbying expenses, we have listened to shareholders over a number of years and have found that the primary concern, how do we oversee important contributions from our PAC and other contributions?
If you go to our website, you'll see expanded disclosure of that governance process and the way we're very intentional and deliberate about reviewing and approving those expenditures and be proud of, because we have a governance process that is very thoughtful in this area. We take these matters seriously and have addressed them through those couple of items that I would point to.
Okay. Very good, I'm going to switch gears again. I'm going to ask you a couple questions here on board diversity. We had a few that came. I'll ask a couple of these, and then I'll let you respond. The first question was: "While I can't tell the race or ethnicity just from the proxy list, the names sound Caucasian except for Saladrigas on your board. Research has shown that companies with more diverse executive and board teams tend to be more profitable." That was the first question. Another question was, "We've noticed that you've made great strides in your board composition over the recent past. Do you anticipate.
Question first, Mike. I agree with the questioner that diversity makes us better, and I think about this complex world that we live in today and the issues that we struggle with here at Duke Energy. You need diverse points of view in order to get to the best answers, and a combination of diversity, race, ethnicity, and gender. We're at 30%. We value that diversity, and as we continue board refreshment, we always keep an eye on diversity. I'd build on that by saying diversity of experience and background is also important. Regulatory background, environmental background, operating background, as we navigate the company and deal with our important strategy and the complexity of this business. As we go forward today, we had a retirement of Anne Gray.
We do have a retirement age of 71, and are very deliberate and thoughtful about bringing members onto the board in a way that continues to further the strategic success of the company.
Yeah.
Retirement. Sure.
I'm going to continue this a little bit, corporate governance, while we're talking about the board. This question was, "Duke does not have an independent board chair. What is the rationale for not following this best practice? How does the lack of an independent chair improve the board's ability to manage climate risk?
Clear set of responsibilities for an independent lead director, Mike. I would encourage investors to look at that role because the independent lead director role provides incredible independence involved in really helping us navigate through complex issues. It's a close advisor to me. I've been blessed over the term that I've been the CEO of the company to have very strong lead independent directors. I believe that role serves that independence that investors New generation, around the matter of renewables or really portfolio transition. The topics are broad that the board contributes to. I am pleased with the very clear and independent role that our board serves in those important decisions.
We had a question here on Power/Forward Carolinas. It's a significant program in the state of North Carolina to really transform the customer experience. The question that we got was, "What effect will Power/Forward have on-
It is a part of our strategy to invest in the energy grid. As we look at all of the transformation that's going on in our industry, having a strong energy grid makes sense. Reliability, storm hardening, and also enabling capacity for more renewables. Almost every direction we look around the transformation that's occurring in our industry, we believe investment there can make sense for investors, but also deliver extraordinary benefits for our customers and create jobs for our communities that count on Duke Energy. We've put forward a 10-year plan in the Carolinas, $13 billion of investment, the opportunity to drive 14,000 jobs across the state, economic benefit over $20 billion. We believe this will not only position North Carolina to lead the way on infrastructure. We are really excited about it.
We think it's a foundational element to the strategic success of the company going forward.
We had a question here actually about this meeting.
Okay.
This is our first year doing the meeting online. The question was, "While shareholders all over the world to participate, there's a great deal lost in the personal interaction of an in-person gathering. Investors believe that engaging with and speaking to the board and management provides a crucial human element that a virtual meeting can never replace. We firmly believe that a hybrid model. Do consider this option for next year?
Mike, I appreciate that question, and we have received that question a number of times. We reached out to a number of our shareholders as part of our ongoing outreach to discuss the virtual format to get their feedback so that it can inform us on how to structure this meeting today. We believe it's going to be around the globe who have an opportunity to participate. We will take every question, which is actually an enhancement from the live meeting. Investors can see all of the questions and all of the answers. The final thing I would say is this notion of engaging with management is something that's an ongoing process that occurs often, frequently, many times outside of the annual meeting. Both our institutional shareholders and our retail shareholders.
Mike is smiling at me because as the head of investor relations, he gets a chance to participate
Yes
in so many of these opportunities, and we'll continue to make that possible. Following this meeting, we'll take feedback. We have responded to these questions and feedback we get from shareholders, and we'll continue to enhance the experience as we go forward.
Very good. Yes, we do spend a lot of time on the road, literally seeing shareholders, as the question said, all over the world. I'm going to ask a question. "Ask for shareholder input on executive compensation when there is no input that is listened to.
I believe ours is very strong. If you look at proxy access, which was mentioned, if you look at action by written consent, Shareholders have had a strong interest in at Duke. Following every annual meeting and every proxy season, our board takes those votes and considerations under advisement and takes action. You can expect that to continue. Following every proxy season, we review the results and make refinements about how we go forward. You can
Here's a great question. You've touched a little bit through your comments, responding to my questions, even in your prepared remarks around the dividend, obviously very important to our investors. This question is, "What are your dividend plans and policy going forward?" Simply as that.
The dividend is an important part of the value proposition to our shareholders. About 75% of our earnings and with a yield that is very attractive, and we believe attractive in almost every financial season. Our aspiration is to grow it at the same pace as our earnings growth, which is a targeted 4%-6%. Recognizing the importance of the dividend, our commitment is to continue moving forward in a way that our shareholders count on.
Well, thank you, Lynn. I think that's about all. Many questions from our investors. We've covered really a wide range of topics here today.
Right.
With that, I really just want to turn it back over to you to close out the meeting.
Sure. Thank you all for joining us today, for participating in our inaugural virtual meeting. As we've said, answers to the investors section of the Duke Energy website. We truly appreciate your investment in Duke Energy-