OTTER TAIL CORP, DEF 14A filed on 3/2/2026
Proxy Statement (definitive)
v3.25.4
Cover
 12 Months Ended
Dec. 31, 2025
Document Information [Line Items]  
Document Type DEF 14A
Amendment Flag false
Entity Information [Line Items]  
Entity Registrant Name OTTER TAIL CORPORATION
Entity Central Index Key 0001466593
v3.25.4
Pay vs Performance Disclosure
 12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Pay vs Performance Disclosure          
Pay vs Performance Disclosure, Table
Year
Summary Compensation Table Total for Principal Executive Officer
($)1
Compensation Actually Paid to Principal Executive Officer
($)
Average Summary Compensation Table Total for Other Named Executive Officers
($)2
Average Compensation Actually Paid to Other Named Executive Officers
($)
Value of Initial Fixed $100 Investment Based on:
Net Income
($)
Return on Equity
(%)4
Total Shareholder Return
($)3
Peer Group Total Shareholder Return
($)3
2025
6,792,688 
7,770,190 
1,714,573 
1,706,441 
219.89 
149.97 
275,893,000 
15.6 
2024
6,388,314 
4,773,083 
1,559,378 
1,252,395 
193.56 
133.54 
301,662,000 
19.3 
2023
5,823,726 
12,139,244 
1,539,386 
2,547,959 
215.82 
109.76 
294,191,000 
22.1 
2022
5,059,578 
3,652,983 
1,335,242 
1,144,432 
145.77 
119.38 
284,184,000 
25.6 
2021
4,732,251 
11,072,828 
1,411,841 
2,541,313 
108.39 
116.65 
176,769,000 
19.2 
        
Company Selected Measure Name Return on equity        
Named Executive Officers, Footnote This is the total compensation, as depicted in the Summary Compensation Table above, for CEO Mr. MacFarlane, our Principal Executive Officer.For the years 2021-2023, this is the average total compensation, as depicted in the Summary Compensation Table above, for the following executives, Mr. Kevin Moug, former Sr. Vice President and Chief Financial Officer; Mr. Rogelstad, Sr. Vice President, Electric Platform, President, Electric Platform; Mr. Abbott, Sr. Vice President, Manufacturing Platform, President, Varistar Corporation; and Ms. Smestad, Sr. Vice President, General Counsel and Corporate Secretary. Mr. Wahlund succeeded and replaced Mr. Moug as Chief Financial Officer effective January 1, 2024.        
Peer Group Issuers, Footnote Our TSR assumes the investment of $100 in our common stock on the last trading day before the earliest fiscal year in the above table through and including the end of the fiscal year for which TSR is depicted, and reinvestment of all dividends during such period. Peer group TSR is based on the weighted-average TSR of the 36 companies included in the EEI Index, excluding Otter Tail Corporation, weighted on the basis of market capitalization at the beginning of each period.        
PEO Total Compensation Amount $ 6,792,688 $ 6,388,314 $ 5,823,726 $ 5,059,578 $ 4,732,251
PEO Actually Paid Compensation Amount $ 7,770,190 4,773,083 12,139,244 3,652,983 11,072,828
Adjustment To PEO Compensation, Footnote
Summary Compensation Total
($)		DeductionsAdditionsCompensation Actually Paid
($)
YearAmounts Reported in the Summary Compensation Table for Stock Awards
($)		Aggregate Change in Value of Accumulated Benefits Under Pension Plan and ESSRP
($)		Value of Service Cost Attributable to the Executive Under the Pension Plan and ESSRP
($)		Value of Stock Awards Granted During the Year, Outstanding and Unvested at Year-End
($)		Change in Value of Stock Awards Granted in Any Prior Year, Outstanding and Unvested at Year-End
($)
Value of Stock Awards Granted and Vested in the Same Year(1)
($)
Change in Value of Stock Awards Granted in Any Prior Year, Vested During the Year
($)
Principal Executive Officer
2025
6,792,688 
(3,149,276)
(376,689)
53,688 
3,364,966 
844,131 
— 
240,682 
7,770,190 
2024
6,388,314 
(3,022,997)
(183,899)
53,688 
2,254,284 
(1,276,532)
— 
560,225 
4,773,083 
2023
5,823,726 
(2,605,539)
(151,969)
51,487 
4,610,328 
4,080,423 
— 
330,788 
12,139,244 
2022
5,059,578 
(2,130,247)
— 
66,755 
2,355,939 
(1,215,248)
— 
(483,794)
3,652,983 
20214,732,251 (1,998,568)— 66,495 4,694,822 3,588,362 — (10,534)
11,072,828 
Average for Other NEOs
2025
1,714,573 
(479,256)
(210,864)
19,849 
512,057 
94,543 
— 
55,539 
1,706,441 
20241,559,378 (470,850)(130,364)19,849 375,169 (169,859)— 69,072 1,252,395 
20231,539,386 (462,025)(88,908)44,742 601,397 672,344 149,231 91,792 2,547,959 
20221,335,242 (398,885)— 80,489 441,970 (209,392)— (104,992)1,144,432 
20211,411,841 (405,726)(156,415)78,392 901,074 714,419 — (2,272)2,541,313 
        
Non-PEO NEO Average Total Compensation Amount $ 1,714,573 1,559,378 1,539,386 1,335,242 1,411,841
Non-PEO NEO Average Compensation Actually Paid Amount $ 1,706,441 1,252,395 2,547,959 1,144,432 2,541,313
Adjustment to Non-PEO NEO Compensation Footnote
Summary Compensation Total
($)		DeductionsAdditionsCompensation Actually Paid
($)
YearAmounts Reported in the Summary Compensation Table for Stock Awards
($)		Aggregate Change in Value of Accumulated Benefits Under Pension Plan and ESSRP
($)		Value of Service Cost Attributable to the Executive Under the Pension Plan and ESSRP
($)		Value of Stock Awards Granted During the Year, Outstanding and Unvested at Year-End
($)		Change in Value of Stock Awards Granted in Any Prior Year, Outstanding and Unvested at Year-End
($)
Value of Stock Awards Granted and Vested in the Same Year(1)
($)
Change in Value of Stock Awards Granted in Any Prior Year, Vested During the Year
($)
Principal Executive Officer
2025
6,792,688 
(3,149,276)
(376,689)
53,688 
3,364,966 
844,131 
— 
240,682 
7,770,190 
2024
6,388,314 
(3,022,997)
(183,899)
53,688 
2,254,284 
(1,276,532)
— 
560,225 
4,773,083 
2023
5,823,726 
(2,605,539)
(151,969)
51,487 
4,610,328 
4,080,423 
— 
330,788 
12,139,244 
2022
5,059,578 
(2,130,247)
— 
66,755 
2,355,939 
(1,215,248)
— 
(483,794)
3,652,983 
20214,732,251 (1,998,568)— 66,495 4,694,822 3,588,362 — (10,534)
11,072,828 
Average for Other NEOs
2025
1,714,573 
(479,256)
(210,864)
19,849 
512,057 
94,543 
— 
55,539 
1,706,441 
20241,559,378 (470,850)(130,364)19,849 375,169 (169,859)— 69,072 1,252,395 
20231,539,386 (462,025)(88,908)44,742 601,397 672,344 149,231 91,792 2,547,959 
20221,335,242 (398,885)— 80,489 441,970 (209,392)— (104,992)1,144,432 
20211,411,841 (405,726)(156,415)78,392 901,074 714,419 — (2,272)2,541,313 
        
Compensation Actually Paid vs. Total Shareholder Return
4103
        
Compensation Actually Paid vs. Net Income
4106
        
Compensation Actually Paid vs. Company Selected Measure
4109
        
Total Shareholder Return Vs Peer Group
4103
        
Tabular List, Table
Named Executive Officer
Corporate Earnings Per Share1
Corporate Return on Equity1
Total Shareholder Return2
Electric Platform Return on Equity1
Electric Platform Net Income1
Manufacturing Platform Net Income1
Charles S. MacFarlane
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Todd R. Wahlund
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Timothy J. Rogelstad
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John S. Abbott
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Jennifer O. Smestad
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Total Shareholder Return Amount $ 219.89 193.56 215.82 145.77 108.39
Peer Group Total Shareholder Return Amount 149.97 133.54 109.76 119.38 116.65
Net Income (Loss) $ 275,893,000 $ 301,662,000 $ 294,191,000 $ 284,184,000 $ 176,769,000
Company Selected Measure Amount 0.156 0.193 0.221 0.256 0.192
PEO Name Mr. MacFarlane        
Additional 402(v) Disclosure Certain stock awards are subject to accelerated vesting at the time of an executive’s retirement. In the above table these awards are only depicted as vested if an executive retired during the year, even though an executive may have been retirement-eligible during the during the year of grant or any year depicted above.
The fair value of stock awards includes the value of both restricted stock unit awards and performance share awards. The measurement date fair value of restricted stock unit awards was determined based on the market price of the Company's common stock on the measurement date. The performance share awards include two separate components, i) a performance based component which is determined based on a ROE measure, and ii) a market based component which is determined based on a TSR measure. The measurement date fair value of the performance based component of the performance share awards was determined based upon the measurement date stock price and a discounted cash flow analysis to adjust for expected unearned dividends during the vesting period, taking into account the estimated number of shares to be granted relative to target and using a Monte Carlo fair value simulation model incorporating the assumptions outlined below.
Grant Year2019202020212022202320242025
Measurement Date12/31/202012/31/202012/31/202112/31/202112/31/202212/31/202212/31/202312/31/202312/31/202412/31/202412/31/202512/31/2025
Risk-free interest rate0.10 %0.13 %0.39 %0.73 %4.73 %4.41 %4.79 %4.23 %4.16 %4.25 %3.48 %3.47 %
Expected term
(in years)		3.003.003.003.003.003.003.003.003.003.003.003.00
Expected volatility58.00 %43.00 %21.00 %44.00 %32.00 %27.00 %35.10 %35.10 %36.20 %36.20 %27.60 %27.60 %
Dividend yield3.40 %3.40 %3.20 %3.20 %2.50 %2.50 %2.30 %2.30 %2.20 %2.20 %2.60 %2.80 %
The measurement date assumptions outlined above are different from the assumptions utilized in determining the grant date fair value in some instances. The assumptions utilized in estimating the grant date fair value of the market based component of the performance share awards for awards granted in 2019 through 2025 are outlined below.
2019202020212022202320242025
Risk-free interest rate2.52 %1.42 %0.18 %1.52 %4.15 %4.16 %4.28 %
Expected term (in years)3.003.003.003.003.003.003.00
Expected volatility21.00 %19.00 %32.00 %32.00 %34.00 %35.10 %30.30 %
Dividend yield3.00 %2.80 %3.60 %2.90 %2.50 %2.40 %2.50 %
For a description of this performance measure, refer to the Elements of Executive Compensation section. (2)For a description of this performance measure, refer to footnote (3) of the Pay Versus Performance Table. 		       
Measure:: 1          
Pay vs Performance Disclosure          
Non-GAAP Measure Description Return on equity is equal to Otter Tail Corporation’s annual net income divided by the 13-month average of total outstanding common equity using the 13 months ending at the end of the fiscal year.        
PEO | Aggregate Change in Present Value of Accumulated Benefit for All Pension Plans Reported in Summary Compensation Table          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ (376,689) $ (183,899) $ (151,969) $ 0 $ 0
PEO | Pension Adjustments Service Cost          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 53,688 53,688 51,487 66,755 66,495
PEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount (3,149,276) (3,022,997) (2,605,539) (2,130,247) (1,998,568)
PEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 3,364,966 2,254,284 4,610,328 2,355,939 4,694,822
PEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 844,131 (1,276,532) 4,080,423 (1,215,248) 3,588,362
PEO | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0 0 0 0
PEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ 240,682 560,225 330,788 (483,794) (10,534)
PEO | Charles S. MacFarlane [Member] | Measure:: 1          
Pay vs Performance Disclosure          
Name Corporate Earnings Per Share        
PEO | Charles S. MacFarlane [Member] | Measure:: 2          
Pay vs Performance Disclosure          
Name Corporate Return on Equity        
PEO | Charles S. MacFarlane [Member] | Measure:: 3          
Pay vs Performance Disclosure          
Name Total Shareholder Return        
Non-PEO NEO | Aggregate Change in Present Value of Accumulated Benefit for All Pension Plans Reported in Summary Compensation Table          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ (210,864) (130,364) (88,908) 0 (156,415)
Non-PEO NEO | Pension Adjustments Service Cost          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 19,849 19,849 44,742 80,489 78,392
Non-PEO NEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount (479,256) (470,850) (462,025) (398,885) (405,726)
Non-PEO NEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 512,057 375,169 601,397 441,970 901,074
Non-PEO NEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 94,543 (169,859) 672,344 (209,392) 714,419
Non-PEO NEO | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0 149,231 0 0
Non-PEO NEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ 55,539 $ 69,072 $ 91,792 $ (104,992) $ (2,272)
Non-PEO NEO | Todd R. Wahlund [Member] | Measure:: 1          
Pay vs Performance Disclosure          
Name Corporate Earnings Per Share        
Non-PEO NEO | Todd R. Wahlund [Member] | Measure:: 2          
Pay vs Performance Disclosure          
Name Corporate Return on Equity        
Non-PEO NEO | Todd R. Wahlund [Member] | Measure:: 3          
Pay vs Performance Disclosure          
Name Total Shareholder Return        
Non-PEO NEO | Jennifer O. Smestad [Member] | Measure:: 1          
Pay vs Performance Disclosure          
Name Corporate Earnings Per Share        
Non-PEO NEO | Jennifer O. Smestad [Member] | Measure:: 2          
Pay vs Performance Disclosure          
Name Corporate Return on Equity        
Non-PEO NEO | Jennifer O. Smestad [Member] | Measure:: 3          
Pay vs Performance Disclosure          
Name Total Shareholder Return        
Non-PEO NEO | Timothy J. Rogelstad [Member] | Measure:: 1          
Pay vs Performance Disclosure          
Name Corporate Earnings Per Share        
Non-PEO NEO | Timothy J. Rogelstad [Member] | Measure:: 2          
Pay vs Performance Disclosure          
Name Corporate Return on Equity        
Non-PEO NEO | Timothy J. Rogelstad [Member] | Measure:: 3          
Pay vs Performance Disclosure          
Name Total Shareholder Return        
Non-PEO NEO | Timothy J. Rogelstad [Member] | Measure:: 4          
Pay vs Performance Disclosure          
Name Electric Platform Return on Equity        
Non-PEO NEO | Timothy J. Rogelstad [Member] | Measure:: 5          
Pay vs Performance Disclosure          
Name Electric Platform Net Income        
Non-PEO NEO | John S. Abbott [Member] | Measure:: 1          
Pay vs Performance Disclosure          
Name Corporate Earnings Per Share        
Non-PEO NEO | John S. Abbott [Member] | Measure:: 2          
Pay vs Performance Disclosure          
Name Corporate Return on Equity        
Non-PEO NEO | John S. Abbott [Member] | Measure:: 3          
Pay vs Performance Disclosure          
Name Total Shareholder Return        
Non-PEO NEO | John S. Abbott [Member] | Measure:: 6          
Pay vs Performance Disclosure          
Name Manufacturing Platform Net Income        
v3.25.4
Award Timing Disclosure
 12 Months Ended
Dec. 31, 2025
Award Timing Disclosures [Line Items]  
Award Timing MNPI Disclosure
We have adopted an Equity Award Grant Policy (“Equity Award Policy”) governing the timing of grants of options and other equity awards. We did not award options in the last fiscal year. Consistent with the Corporation’s 2023 Stock Incentive Plan, the Board has delegated the authority to grant equity awards to Mr. MacFarlane and the Vice President of Human Resources - with the exception of grants to the Corporation’s officers as defined by Rule 16a-1 of the Securities Exchange Act. The Equity Award Policy provides that equity award grants may be made by the Board, Compensation and Human Capital Management Committee, Mr. MacFarlane or the Vice President of Human Resources at the regularly scheduled February Board meetings for the executive officers and select employees and at the regularly scheduled April Board meetings for non-employee Directors and other employees. Grants of equity awards to new hires or for purposes of recognition or retention who are not Executive Officers also may be made on a monthly basis, on the first day of the month or, if not a business day, the next succeeding business day. Any special grants made to the executive officers must be approved by the Compensation and Human Capital Management Committee and ratified by the Board of Directors at the next meeting. No grant of an equity award to a new hire may be made prior to the date of the new hire’s employment.
The Corporation will not purposefully accelerate or delay the public release of material information in consideration of a pending equity award in order to allow the grantee to benefit from a more favorable share price. The Corporation recognizes, however, that a release of information in close proximity to an equity award could create the appearance of an effort to time the grantee’s equity award to the grantee’s benefit, even if no such benefit was intended. Accordingly, equity awards are granted based on a predetermined schedule whenever possible.
Award Timing Method
The Corporation will not purposefully accelerate or delay the public release of material information in consideration of a pending equity award in order to allow the grantee to benefit from a more favorable share price. The Corporation recognizes, however, that a release of information in close proximity to an equity award could create the appearance of an effort to time the grantee’s equity award to the grantee’s benefit, even if no such benefit was intended. Accordingly, equity awards are granted based on a predetermined schedule whenever possible.
Award Timing Predetermined true
Award Timing MNPI Considered true
Award Timing, How MNPI Considered
The Corporation will not purposefully accelerate or delay the public release of material information in consideration of a pending equity award in order to allow the grantee to benefit from a more favorable share price. The Corporation recognizes, however, that a release of information in close proximity to an equity award could create the appearance of an effort to time the grantee’s equity award to the grantee’s benefit, even if no such benefit was intended. Accordingly, equity awards are granted based on a predetermined schedule whenever possible.
MNPI Disclosure Timed for Compensation Value false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true