American Electric Power Co. (AEP), AEP Appoints Interim CEO Amid Icahn Activism

February 28, 2024 : American Electric Power Co. (AEP) named Benjamin G.S. Fowke III as its interim chief executive officer (CEO) swiftly following recent engagement with activist investor Carl Icahn. Fowke, previously the chairman and CEO of Xcel Energy Inc., brings significant energy sector experience. He takes the helm immediately.

This appointment comes after Icahn secured two seats on AEP’s board of directors earlier this month. The timing raises questions about the potential influence of activist shareholders on the company’s future direction.

Fowke’s appointment signifies AEP’s commitment to strong leadership during this transition period. He replaces Julie Sloat, who has been CEO since January 2023. Her departure coincides with the arrival of Icahn’s representatives on the board, leaving the exact reasons behind her exit undisclosed.

AEP faces a complex landscape, grappling with rising energy costs, potential regulatory changes, and investor expectations. The company’s recent financial performance has been mixed, with revenue falling short of analyst expectations in the latest quarter.

Analysts closely monitor the situation, seeking clarity on AEP’s long-term strategy and how the recent board appointments and leadership change might shape it. The company is expected to provide further details in the coming weeks.

This development highlights the dynamic relationship between companies and activist shareholders. AEP’s situation exemplifies how such engagement can influence leadership decisions and strategic direction.