Entergy 2007 Annual Report Download - page 11

s a corporation, Entergy seeks to unlock value by striving to
continually deliver top-quartile total shareholder returns, create
an accident-free workplace, be the cleanest power generator in
America and contribute to a society that is healthy, productive and
educated. Our aspiration to consistently deliver value to multiple
stakeholders is in keeping with our strong belief in sustainable
development. We made excellent progress in our sustainability eorts
and we were gratied to have our eorts recognized again in 2007.
n฀ We delivered top-quartile total shareholder return in 2007 and we
were number one in total shareholder return over the nine-year
period ending Dec. 31, 2007.
n฀ e Dow Jones Sustainability Indexes named Entergy Corporation
to the exclusive Dow Jones Sustainability World Index for an
unprecedented sixth consecutive year. Entergy was the only U.S.
utility selected for the world index and one of only 16 utilities
chosen worldwide. Our organization ranked best in class for
occupational safety, environmental policy and environmental
management, stakeholder engagement, climate strategy and talent
attraction and retention.
n฀ We were selected as part of the prominent Climate Disclosure
Leadership Index for the fourth consecutive time. Candidates for
the index are assessed relative to their peers and judged based on
which companies have the most comprehensive climate change
disclosure practices.
n฀ Entergy was named one of the 10 Best Corporate Citizens in 2007
by Corporate Responsibility Ocer magazine. For the utility industry,
Entergy ranked number one out of 88 North American companies
evaluated and scored in the top quartile in seven of the eight categories
evaluated, including human rights, corporate governance, environment,
climate change, philanthropy, nancial and employee relations.
n฀ Institutional Shareholder Services rated Entergy as the top utility
for corporate governance and indicated that we outperformed
99.8 percent of companies in the S&P 500.
n฀ We were also recognized as one of “America’s Most Trustworthy
Companies” by Forbes magazine for accounting transparency and
fair dealings with stakeholders. We were the only utility to make
the list, which was drawn from 8,000 public companies.
At Entergy, we conduct our business in accordance with the
principles of sustainable development. Our ongoing quest to seek
value in our businesses, employees, customers, communities and
environment is how we generate sustainable growth. We contend
that it is not only possible to be a leader in nancial, operational and
societal performance; it is our responsibility to do so.
Below are highlights of our corporate sustainability eorts for
2007 in the areas of shareholder returns, safety, environmental
performance and our low-income initiative.
Top-Quartile Shareholder Returns
In 2007, we once again delivered top-quartile returns for our
shareholders. Our total shareholder return for the year was 32.5
percent compared to 19.0 percent for the Philadelphia Utility Index.
Over the past nine years, since a new leadership team was put in place,
Entergy has delivered the highest total shareholder return in its peer
group. From Dec. 31, 1998 to Dec. 31, 2007, total shareholder return
was 414.3 percent for Entergy investors. at compares to a 134.1 percent
total return for the Philadelphia Utility Index.
In 2007, we took several steps to position ourselves to continue
to deliver exceptional returns. Our Board of Directors increased
the quarterly dividend in July, long overdue since the last increase
in 2004, and consistent with our aspiration to achieve a 60 percent
target payout ratio. Following the spin-o, Entergy Classic will aspire
to a 70 to 75 percent dividend payout ratio. Also in 2007, we initiated
a new $1.5 billion stock repurchase program and returned nearly
$1 billion of cash to our owners through this program, doubling
our repurchase aspiration of $500 million. As a corporation, we are
committed to returning the value inherent in our operations to our
shareholders. Dividends and share repurchases are important
vehicles for doing just that.
Our plan to pursue a proposed spin-o of the non-utility nuclear assets
to our shareholders is another vehicle to unlock value. Following the
spin, Entergy shareholders will hold two distinct equities – Entergy
stock comprised of the regulated utility business and SpinCo stock
comprised of the non-utility nuclear plants and a power marketing
operation. Entergy Classic and SpinCo will each own a 50 percent
stake in the nuclear services joint venture. We believe having an
option to trade these two equities independently will be highly
valuable to our shareholders and the Entergy leadership team is
committed to delivering that value in 2008 through the separation of
the two businesses.
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Entergy Corporation and Subsidiaries 2007
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The Search for Value Continues
Entergy Corporation