CenterPoint Energy (CNP) investor relations material

Executive summary

• Shareholders are asked to vote on a proposal to add a limited officer exculpation provision to the Articles of Incorporation, aligning officer protections with those of directors.

• The provision is designed to address an imbalance in liability exposure between officers and directors, aiming to attract and retain qualified officers and reduce litigation and insurance costs.

• The Board unanimously recommends voting in favor of the proposal, emphasizing its alignment with recent changes in Texas and Delaware corporate law and widespread adoption among public companies.

Voting matters and shareholder proposals

• Proposal 4 seeks approval for a limited officer exculpation provision, excluding liability for breaches of loyalty, bad faith, intentional misconduct, improper benefits, or statutory violations.

• The provision does not apply to derivative claims, making it more limited than Texas law allows and consistent with Delaware law.

• The Board believes this update is necessary to maintain competitiveness in officer recruitment and retention.

Board of directors and corporate governance

• The Corporate Governance and Nominating Committee crafted the proposal to ensure accountability while aligning with best practices.

• The Board unanimously supports the proposal, viewing it as a responsible update that supports long-term value.