OTTER TAIL CORP, DEF 14A filed on 2/28/2024
Proxy Statement (definitive)
v3.24.0.1
Cover
 12 Months Ended
Dec. 31, 2023
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
v3.24.0.1
Pay vs Performance Disclosure
 12 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
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
($)
Peer Group Total Shareholder Return
($)3
20235,823,726 12,139,244 1,539,386 2,547,959 185.62 108.77 294,191,000 22.1 
20225,059,578 3,652,983 1,335,242 1,144,432 125.37 119.84 284,184,000 25.6 
20214,732,251 11,072,828 1,411,841 2,541,313 147.06 118.27 176,769,000 19.2 
20205,126,043 3,543,984 1,509,111 1,080,294 85.52 97.30 95,851,000 11.6 
      
Company Selected Measure Name Return on equity      
Named Executive Officers, Footnote For the years 2020-2023, this is the total compensation, as depicted in the Summary Compensation Table above, for CEO Mr. MacFarlane, our Principal Executive Officer.For the years 2020-2023, this is the average total compensation, as depicted in the Summary Compensation Table above, for the following executives, Mr. Moug, 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, Vice President, General Counsel and Corporate Secretary.      
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 38 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 $ 5,823,726 $ 5,059,578 $ 4,732,251 $ 5,126,043
PEO Actually Paid Compensation Amount $ 12,139,244 3,652,983 11,072,828 3,543,984
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
20235,823,726 (2,605,539)(151,969)51,487 4,610,328 4,080,423 — 330,788 12,139,244 
20225,059,578 (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 
20205,126,043 (1,732,446)(1,160,611)57,531 1,647,867 (504,996)— 110,596 3,543,984 
Average for Other NEOs
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 
20201,509,111 (367,105)(382,085)75,439 346,644 (125,504)— 23,794 1,080,294 
      
Non-PEO NEO Average Total Compensation Amount $ 1,539,386 1,335,242 1,411,841 1,509,111
Non-PEO NEO Average Compensation Actually Paid Amount $ 2,547,959 1,144,432 2,541,313 1,080,294
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
20235,823,726 (2,605,539)(151,969)51,487 4,610,328 4,080,423 — 330,788 12,139,244 
20225,059,578 (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 
20205,126,043 (1,732,446)(1,160,611)57,531 1,647,867 (504,996)— 110,596 3,543,984 
Average for Other NEOs
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 
20201,509,111 (367,105)(382,085)75,439 346,644 (125,504)— 23,794 1,080,294 
      
Compensation Actually Paid vs. Total Shareholder Return
3905
      
Compensation Actually Paid vs. Net Income
3908
      
Compensation Actually Paid vs. Company Selected Measure
3911
      
Total Shareholder Return Vs Peer Group
3905
      
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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Kevin G. Moug
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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 $ 185.62 125.37 147.06 85.52
Peer Group Total Shareholder Return Amount 108.77 119.84 118.27 97.30
Net Income (Loss) $ 294,191,000 $ 284,184,000 $ 176,769,000 $ 95,851,000
Company Selected Measure Amount 0.221 0.256 0.192 0.116
PEO Name Mr. MacFarlane      
Additional 402(v) Disclosure
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 Year201820192020202120222023
Measurement Date12/31/201912/31/201912/31/202012/31/202012/31/202112/31/202112/31/202212/31/202212/31/202312/31/2023
Risk-free interest rate1.59 %1.58 %0.10 %0.13 %0.39 %0.73 %4.73 %4.41 %4.79 %4.23 %
Expected term
(in years)		3.003.003.003.003.003.003.003.003.003.00
Expected volatility20.00 %20.00 %58.00 %43.00 %21.00 %44.00 %32.00 %27.00 %35.10 %35.10 %
Dividend yield2.70 %2.70 %3.40 %3.40 %3.20 %3.20 %2.50 %2.50 %2.30 %2.30 %
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 2018 through 2023 are outlined below.
201820192020202120222023
Risk-free interest rate2.23 %2.52 %1.42 %0.18 %1.52 %4.15 %
Expected term (in years)3.003.003.003.003.003.00
Expected volatility22.00 %21.00 %19.00 %32.00 %32.00 %34.00 %
Dividend yield3.20 %3.00 %2.80 %3.60 %2.90 %2.50 %
      
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 | Deductions, Amounts Reported In The Summary Compensation Table For Stock Awards [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount $ (2,605,539) $ (2,130,247) $ (1,998,568) $ (1,732,446)
PEO | Deductions, Aggregate Change in Value of Accumulated Benefits Under Pension Plan and ESSRP [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (151,969) 0 0 (1,160,611)
PEO | Additions, Value of Service Cost Attributable to the Executive Under the Pension Plan and ESSRP [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 51,487 66,755 66,495 57,531
PEO | Additions, Value of Stock Awards Granted During the Year, Outstanding and Unvested at Year-End [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 4,610,328 2,355,939 4,694,822 1,647,867
PEO | Additions, Change in Value of Stock Awards Granted in Any Prior Year, Outstanding and Unvested at Year-End [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 4,080,423 (1,215,248) 3,588,362 (504,996)
PEO | Additions, Value of Stock Awards Granted and Vested in the Same Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 0 0 0 0
PEO | Change in Value of Stock Awards Granted in Any Prior Year, Vested During the Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount $ 330,788 (483,794) (10,534) 110,596
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 | Deductions, Amounts Reported In The Summary Compensation Table For Stock Awards [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount $ (462,025) (398,885) (405,726) (367,105)
Non-PEO NEO | Deductions, Aggregate Change in Value of Accumulated Benefits Under Pension Plan and ESSRP [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (88,908) 0 (156,415) (382,085)
Non-PEO NEO | Additions, Value of Service Cost Attributable to the Executive Under the Pension Plan and ESSRP [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 44,742 80,489 78,392 75,439
Non-PEO NEO | Additions, Value of Stock Awards Granted During the Year, Outstanding and Unvested at Year-End [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 601,397 441,970 901,074 346,644
Non-PEO NEO | Additions, Change in Value of Stock Awards Granted in Any Prior Year, Outstanding and Unvested at Year-End [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 672,344 (209,392) 714,419 (125,504)
Non-PEO NEO | Additions, Value of Stock Awards Granted and Vested in the Same Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 149,231 0 0 0
Non-PEO NEO | Change in Value of Stock Awards Granted in Any Prior Year, Vested During the Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount $ 91,792 $ (104,992) $ (2,272) $ 23,794
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      
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 | Kevin G. Moug [Member] | Measure:: 1        
Pay vs Performance Disclosure        
Name Corporate Earnings Per Share      
Non-PEO NEO | Kevin G. Moug [Member] | Measure:: 2        
Pay vs Performance Disclosure        
Name Corporate Return on Equity      
Non-PEO NEO | Kevin G. Moug [Member] | Measure:: 3        
Pay vs Performance Disclosure        
Name Total Shareholder Return