Entergy 2011 Annual Report Download - page 11

reducing these pollutants would have immediate positive impacts
on air pollution, crops and water supplies – things the Chinese
and Indian governments care about. Soot, for example, already
kills about two million people annually. The point Dr. Victor
makes is countries will only do what they can do. And political
support is essential in every country. Cutting these pollutants
will have a tangible effect on warming, but substantial reductions
in CO2 are also needed. Victor’s strategy is a way to align the
self-interest of the large emitters in the developing world with
America’s interest in less global warming.
Right now, around the world, the U.S. is short on credibility
and the diplomatic tools to assure the rest of the world will follow
our lead. Dr. Victor’s work deserves serious consideration in
the climate change debate. The U.S. cannot engage in unilateral
economic disarmament by charging for use of the environment
while others continue to take it for free. But this is not the
unsolvable issue some portray it to be.
Built to Last
When most people think of frogs, the first thing to come to mind
isn’t their remarkable evolutionary and adaptive record. For
some, it’s the boiled frog anecdote and for others it’s the story of
“The Princess and the Frog,” first penned by the Grimm Brothers
under a similar title and story line. Most recently it was made into
a highly entertaining movie by Walt Disney Animation Studios,
set in the jazz age in our home city of New Orleans. The story line
is basically the same. The handsome prince is turned into a frog.
But in this story so is the princess. Both are returned to their
former status by a kiss between the frogs. And, of course, they
live happily ever after – a delightful story, but fantasy.
The world, our nation, our industry and our company face
enormous challenges. We must deal with reality, not happy talk
that relies on the improbable to the impossible. There is no magic
wand we can wave and turn a frog into more than it is. Putting two
frogs together in a merger will not create a deity capable of solving
the problems we face. The issues we face will require ingenuity,
commitment, setting priorities, making sacrifices for the greater
good and simply hard work. We cannot afford indecision or
wishful thinking to deter us from the work clearly at hand.
Our point-of-view-driven business model helps us make
the right decisions for our stakeholders and the long-term
success of Entergy. However, implementing the model, making
decisions and taking action require leadership and execution
by talented, experienced people with a winning mentality. We
have an abundance of such people at Entergy. Throughout our
organization, our employees have demonstrated the ability to
find opportunity within each challenge. Our organization has a
proven ability to adapt to changing market conditions. As we
work towards making plans and initiatives to address today’s
challenges, new opportunities will open up for our employees.
I have no doubt they are prepared for what lies before us.
At the top ranks, every member of our senior leadership
team is ready and able to lead the organization under the
direction of our experienced board of directors. Through many
changes – both internal and external – our leadership team
has demonstrated resilience and adaptability. In January 2012,
two key members of our leadership team, Group President of
Utility Operations Gary Taylor and Executive Vice President
and General Counsel Bob Sloan, announced their retirements.
We thank Gary and Bob for their significant contributions to
our organization. While they will be missed, we are fortunate
to have exceptional depth of talent at Entergy that is ready and
able to lead our organization forward in its efforts to deliver.
We are an organization where everyone is expected to roll
up their sleeves every day and get their hands or work gloves
dirty. While we strive to stay focused every day on long-term
sustainability and serving our stakeholder needs, we are also
prepared to take the gloves off to remove unnecessary or
unreasonable roadblocks put up by those who oppose our efforts.
Over the last 13 years we have grown operational earnings
per share at a rate 2.5 times the average and total annual
shareholder return at 1.5 times the average of Philadelphia
Utility Index members or top quartile. However, 2012 will be a
difficult year on earnings as commodity prices are at the lowest
point in years, and may not recover in the short term. But, like
the frog, we’ll adapt.
We’re encouraged by the progress we made in 2011 in
strategic areas of our business and yet we recognize there
is still much to do. We’ll make reasoned and, if necessary,
tough decisions – as dictated by market conditions – with
the overarching goal to deliver sustainable value to our
stakeholders over the long term. We are grateful for the
confidence our shareholders have expressed in Entergy and
its leadership team. We are a 24-hour-a-day, 7-day-a-week
business. If there were such a thing as overtime, I assure you,
we are working it to achieve that end.
J. Wayne Leonard
Chairman and Chief Executive Officer
Entergy Corporation and Subsidiaries 2011
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