NiSource Inc. has announced it is hiring Donald Brown as an executive vice president with the expectation he will become chief financial officer once the company spins off its pipeline business this summer.
Brown, 43, has most recently served as vice president and chief financial officer at UGI Utilities, an electric and natural gas utility in Pennsylvania. Previous to that he was controller at the utility and director of Treasury Services at its parent company.
As NiSource CFO, Brown is expected to succeed Stephen P. Smith, who will become the chief financial officer of Columbia Pipeline Group, the stand-alone company NiSource is forming out of its pipeline division.
Brown will report to Joseph Hamrock, who is chief executive officer of NiSource's gas distribution business. Hamrock is slated to become NiSource CEO upon the separation. NiSource CEO Robert Skaggs Jr. will become CEO at Columbia Pipeline Group.
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"Donald brings an exceptional depth of public utility experience combined with a track record of disciplined financial management and execution," Hamrock said.
In a filing with the U.S. Securities and Exchange Commission, NiSource stated Brown will start at a base salary of $450,000. He will also be eligible for a performance-based bonus of up to 95 percent of base salary.
Brown will be granted restricted stock units with a total value of $1.26 million that will vest in future years, according to the filing.
NiSource Board of Directors Chairman Richard L. Thompson also praised Brown's appointment as critical to NiSource's and Columbia Pipeline Group's plans.
"Donald's experience complements a proven and respected management team planned for NiSource, and his appointment is an important step to ensuring both CPG and NiSource are prepared to execute as independent companies," Thompson said.