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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

SCHEDULE 14AProxy Statement Pursuant to Section 14(a) of the Securities

Exchange Act of 1934Filed by the Registrant ☒Filed by a Party other than the Registrant oCheck the appropriate box: o Preliminary Proxy Statement o Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))☒ Definitive Proxy Statement o Definitive Additional Materials o Soliciting Material Pursuant to §240.14a-12

CMS Energy Corporation(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):☒ No fee required. o Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. (1) Title of each class of securities to which transaction applies: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount

on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: o Fee paid previously with preliminary materials. o Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the

offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and thedate of its filing.

(1) Amount Previously Paid: (2) Form, Schedule or Registration Statement No.: (3) Filing Party: (4) Date Filed:

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CMSENERGYCORPORATIONCONSUMERSENERGYCOMPANY

NOTICEOFANNUALMEETINGSOFSHAREHOLDERS

ToShareholdersofCMSEnergyCorporationandConsumersEnergyCompany:

TheCMSEnergyCorporation(“CMS”)AnnualMeetingofShareholdersandtheConsumersEnergyCompany(“Consumers”)AnnualMeetingofShareholders(collectively“AnnualMeeting”)willbeheldconcurrentlyonFriday,May1,2020,at10:00a.m.,EasternDaylightSavingTime,atthecorporateheadquarters,OneEnergyPlaza,Jackson,Michigan49201forthepurposeofconsideringthefollowingmatters:

For Both CMS and Consumers Shareholders:Board of DirectorsRecommendation

ElecttheDirectorNomineesNamedinthisProxyStatementtotheBoardofDirectors FOREACHApprove,onanAdvisoryBasis,ExecutiveCompensation FORRatifytheAppointmentofIndependentRegisteredPublicAccountingFirm FORApprovethe2020PerformanceIncentiveStockPlan FORTransactsuchotherbusinessasmayproperlycomebeforetheAnnualMeetingandanyadjournmentorpostponement

For CMS Shareholders Only:Board of DirectorsRecommendation

VoteonaShareholderProposalRelatingtoPoliticalContributionsDisclosure,ifProperlyPresented

AGAINST

AllshareholdersofrecordatthecloseofbusinessonMarch3,2020,areentitledtoreceivenoticeofandvoteattheAnnualMeeting.WhetherornotyouplantoattendtheAnnualMeeting,youcanvotepriortothemeetingbytelephone,Internet,proxycardorvotinginstructionform.Weencourageyoutoexerciseyourrighttovote.AllsharesofConsumerscommonstockheldbyCMS(99.6%ofthevotingsharesofConsumers)willbevotedfortheproposedDirectornominees,thusassuringtheirelectionasDirectorsofConsumers,aswellasfortheotherrecommendationsoftheConsumers’BoardofDirectors.

WeintendtoholdourAnnualMeetinginperson.However,CMSandConsumerscontinuetoactivelymonitortheCoronavirusDisease2019(“Covid-19”)pandemicandmaydecidetoforegothephysicalAnnualMeetinginfavorofavirtualonlyAnnualMeeting.IfadecisionismadetoforegothephysicalAnnualMeeting,anewsreleasewillbeissuedandtheinformationwillbepostedontheAnnualMeetingwebsiteatwww.cmsenergy.com,nolaterthanApril17.

ByOrderoftheBoardsofDirectors,

MelissaM.GleespenVicePresident,CorporateSecretaryandChiefComplianceOfficerCMSEnergyCorporationConsumersEnergyCompanyMarch19,2020

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Shareholders to Be Held on May 1, 2020.

This Proxy Statement and Annual Report to Shareholders are available at https://materials.proxyvote.com/125896 for CMS and

https://materials.proxyvote.com/210518 for Consumers.

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Proxy StatementTABLE OF CONTENTSProposal1:ElecttheDirectorNomineesNamedinthisProxyStatementtotheBoardofDirectors PAGE 3CorporateGovernance PAGE 12

12 GovernanceGuidelinesandMaterials12 BoardofDirectors12 BoardLeadershipStructure13 RiskOversight13 CybersecurityOversight13 PoliticalContributionOversight13 PublicResponsibilityandSustainabilityOversight14 ShareholderEngagement14 BoardCommunicationProcess15 IdentificationofDirectorCandidates16 DirectorCandidateQualifications16 DirectorTenure16 DirectorIndependence17 CMSMajorityVotingStandard17 DirectorEducation18 Board,CommitteeandDirectorEvaluations18 BoardandCommitteeInformation20 CompensationRisk20 CodesofEthics20 RelatedPartyTransactions21 NoPledgingorHedging21 ManagementSuccessionPlanning21 CEOPayRatio23 Directors’Compensation

BeneficialOwnership PAGE 25CompensationDiscussionandAnalysis PAGE 27

27 ExecutiveSummary30 ObjectivesofOurExecutiveCompensationProgram34 TheElementsofOurExecutiveCompensationProgram42 CorporateGovernanceasitRelatestoExecutiveCompensation

CompensationandHumanResourcesCommitteeReport PAGE 442019CompensationTables PAGE 45Proposal2:Approve,onanAdvisoryBasis,ExecutiveCompensation PAGE 60ReportoftheAuditCommittee PAGE 62FeesPaidtotheIndependentRegisteredPublicAccountingFirm PAGE 63Proposal3:RatifytheAppointmentofIndependentRegisteredPublicAccountingFirm PAGE 64Proposal4:Approvethe2020PerformanceIncentiveStockPlan PAGE 65Proposal5:VoteonShareholderProposalRelatingtoPoliticalContributionsDisclosure(CMS) PAGE 722021ProxyStatementInformation PAGE 75GeneralInformation PAGE 76AppendixA:GAAPReconciliations PAGE A-1AppendixB:PerformanceIncentiveStockPlan PAGE B-1

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PROXY STATEMENT SUMMARYMeeting Information Record Date:March3,2020May1,2020•10:00a.m.EDT OneEnergyPlaza,Jackson,Michigan49201 Proxy Materials Released: March19,2020

Theterms“Corporation,”“we,”“our”andotherrepresentationsasusedinthisProxyStatementgenerallyrefertobothCMSEnergyCorporation(“CMS”)anditsprincipalsubsidiary,ConsumersEnergyCompany(“Consumers”).

ThissummaryhighlightsinformationcontainedelsewhereinthisProxyStatementanddoesnotcontainalloftheinformationthatyoushouldconsider.WeencourageyoutoreadthisentireProxyStatementcarefullybeforevoting.

ProposalsCMS

ShareholdersConsumersShareholders

BoardRecommendation

PageReference

ElecttheDirectorNomineesNamedinthisProxyStatementtotheBoardofDirectors

X X FOREACH 3

Approve,onanAdvisoryBasis,ExecutiveCompensation X X FOR 60RatifytheAppointmentofIndependentRegisteredPublicAccountingFirm

X X FOR 64

Approvethe2020PerformanceIncentiveStockPlan X X FOR 65VoteonaShareholderProposalRelatingtoPoliticalContributionsDisclosure,ifProperlyPresented

X AGAINST 72

How to VoteOnline: Youcanvoteyoursharesonlinebyfollowingtheinstructionsonyourproxycard,votinginstruction

formorNoticeofAvailability. Telephone: Youcanvoteyoursharesbytelephonebyfollowingtheinstructionsonyourproxycard,voting

instructionformorNoticeofAvailability. Mail: YoucanvoteyoursharesbymailbyrequestingaprintedcopyoftheProxyMaterialsandsigning,

datingandmailingintheproxycardorvotinginstructionform. Attend: YoucanvoteyoursharesinpersonbyattendingandvotingattheAnnualMeeting.

CMSENERGY2020PROXYSTATEMENT 1

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Governance HighlightsNumberofDirectorNominees 11NumberofIndependentDirectors 10Audit,CompensationandHumanResources,Finance,andGovernance,SustainabilityandPublicResponsibilityCommitteesConsistEntirelyofIndependentDirectors YesAnnualElectionofAllDirectors YesPresidingDirectorAnnuallyElectedbyIndependentDirectors YesPolicyonDirectorandCommitteeChairTermLimits YesAnnualAdvisorySay-on-PayVote YesIndependentDirectorsMeetRegularlyinExecutiveSession YesAnnualBoardandCommitteeSelfEvaluations YesIndividualDirectorPeerEvaluations YesCodesofBusinessConductandEthics YesCorporateGovernancePrinciples YesSustainabilityReport YesClimateAssessmentReport YesMethaneReductionPlan YesStockOwnershipGuidelinesforDirectorsandExecutiveOfficers YesProxyAccess YesShareholderRightsPlan(PoisonPill) No

Nominees

Name Age

GenderandEthnicDiversity

DirectorSince(#ofYears) Independent

CommitteeMemberships

AuditCompensationandHumanResources Finance

Governance,SustainabilityandPublicResponsibility Executive

JonE.Barfield 68 • 2005(15) Yes X Chair XDeborahH.Butler

65 • 2015(5) Yes X X

KurtL.Darrow 65 2013(7) Yes Chair X XWilliamD.Harvey

71 2012(8) Yes X

PatriciaK.Poppe 51 • 2016(4) No JohnG.Russell 62 2010(10) Yes ChairSuzanneF.Shank

58 • 2019(1) Yes X X

MyrnaM.Soto 51 • 2015(5) Yes X X JohnG.Sznewajs

52 2015(5) Yes X Chair X

RonaldJ.Tanski 67 2019 Yes X X LauraH.Wright 60 • 2013(7) Yes Chair X X

Average Age of Director Nominees: 61 Average Tenure of Director Nominees: 6 years


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PROXY STATEMENTWhileCMSandConsumersareestablished,operatedandregulatedasseparatelegalentities,CMSandConsumershavethesameindividualsserveasmembersoneachBoardofDirectorsandeachBoardCommitteeandhaveadoptedcoordinateddirectorandexecutivecompensationarrangementsandplansaswellasauditingrelationships.Thetwocompaniesalsohavesignificantoverlapinexecutivemanagement.AlthoughincertaincontextsinthisProxyStatementtheterms“we”and“our”refertoeachofCMSandConsumersandsatisfytheirrespectivedisclosureobligations,thisCombinedProxyStatementisseparatelyfiledbyCMSandConsumers.InformationinthisCombinedProxyStatementrelatingtoeachindividualregistrantisfiledbysuchregistrantonitsownbehalf.Unlessspecificallynoted,singularreferencesto“Board,”“Committee,”“Corporation,”and“AnnualMeeting”referstobothCMSandConsumers.

PROPOSAL 1: ELECT THE DIRECTOR NOMINEES NAMED IN THIS PROXY STATEMENT TOTHE BOARD OF DIRECTORSThereare11nomineesforelectionasdirectorsofCMSandConsumers,toholdofficeuntilthenextannualmeetingofshareholdersanduntiltheirsuccessorsareelectedandqualified.TheBoardbelievesthatthenomineeswillbeavailabletoserve,butintheeventanynomineeisunabletodoso,theproxieswillbevotedforasubstitutenomineedesignatedbytheBoardorthenumberofdirectorsconstitutingthefullBoardwillbereducedaccordingly.

AllofthenomineesarecurrentlyservingasDirectors.Allelevennomineeshaveacceptedtheirnominationandagreetoserveifelected.RonaldJ.TanskiwasappointedtotheBoardinNovember2019,andisstandingforelectionforthefirsttimeatthe2020AnnualMeeting.OnecurrentBoardmember,StephenE.Ewing,isnotstandingforre-electiontotheBoard,havingreachedtheretirementage,asstatedinourAmendedandRestatedCorporateGovernancePrinciples(“Principles”).Consequently,effectiveasofthe2020AnnualMeeting,thesizeoftheBoardwillbereducedbyonememberforatotalof11members.


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Thefollowingtableidentifiesthebalanceofexperience,skillsandqualificationsthatthenomineesbringtotheBoard.TheskillsandqualificationsthataremarkedbelowarereviewedbytheGovernance,SustainabilityandPublicResponsibilityCommittee(“GovernanceCommittee”)andtheBoardwhenmakingnominationdecisionsandreviewingBoardsuccessionplanningandthefactthataparticularskillorqualificationisnotdesignateddoesnotmeannomineesdonotalsopossessthespecificexperienceandqualifications.ThetablebelowillustrateshowtheBoardiswell-positionedtoprovidedirectionandoversightwithrespecttoouroverallperformance,strategicdirectionandsignificantcorporatepolicies.


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Core Competencies have an impact on our purpose, which ismeasured by our “triple bottom line” of people, planet, and profit,underpinned by performance.

Core Competencies and Relevance to CMS and ConsumersSeniorLeadership

SeniorLeadershipexperienceisimportanttounderstandingandoverseeingourcomplexorganizationandempoweringemployeesthroughindividualgrowthanddevelopment.

Finance,AccountingorFinancialReporting

Finance,AccountingorFinancialReportingexperienceisimportantinoverseeingourfinancialmanagementandcapitalallocation,aswellasensuringaccuratefinancialreportingprocessesandrobustcontrols.

RegulatoryEnvironment/GovernmentalAffairs

RegulatoryEnvironmentandGovernmentalAffairsexperienceisimportantinunderstandingtheregulatednatureoftheutilityindustry,providinginsightandperspectiveinworkingconstructivelyandproactivelywithgovernmentalagenciesandhelpingshapepublicpolicyinitiativesandregulation/legislation.

RiskManagement

RiskManagementexperienceisimportanttooverseeourrobustenterprisesriskmanagementprogramandmitigatekeyriskstotheCompany.

CustomerExperience

CustomerExperienceisimportantaswefocusonmeetingcustomerexpectationsandtransformingthecustomerexperience,includingmobileanddigitalexperiences.

InformationTechnology/SafetyandSecurity

InformationTechnology/SafetyandSecurityexperienceisimportantinoverseeingtheenhancementandsecurityofourbusinessandoperationalsystems(bothphysicalandcyber),includinginformationsecurity,dataprivacy,cybersecurity,customerexperience,financialsystemsandinternalandgridoperations.

UtilityExperience

UtilityExperienceisimportantinunderstandingthetechnicalnatureofourbusinessandtohelpinformourviewsonutility-relatedmatters,suchasenergymarketsandeconomics,technology,renewableenergy,electricandgastransmissionanddistribution,publicpolicyandsafety.

StrategicPlanningandGovernance

StrategicPlanningandGovernanceexperienceisimportantinordertodefineanddrivestrategicdirectionandgrowthandoverseeouroperationsaswellascontributingtotheBoard’sunderstandingofbestpracticesincorporategovernancematters.

SustainabilityandEnvironmental

Weplacethehighestpriorityonthehealthandsafetyofourworkforceandprotectionofourcustomers,assets,communitiesandtheenvironment,thereforeSustainabilityandEnvironmentalexperienceisimportanttomanageoursustainabilitypractices,includingenvironmental,socialandgovernancemattersandcontinueourcommitmenttoimprovingourenvironmentalperformanceandreducingthepotentialnegativeimpactsofouroperations.

HumanResourcesandExecutiveCompensation

HumanResourcesandExecutiveCompensationexperienceisimportanttoensureourabilitytorecruit,retainanddevelopkeytalentessentialtoouroperations.

Lean

Leanexperienceisimportanttoimprovesafety,quality,cost,deliveryandmoralesimultaneouslybyusingqualitytoolstoclearlydefineproblemsandsolvethemclosesttothecustomeranddriveimprovedperformance,enhancedorganizationalfocusandacultureofcontinuousimprovement.

DiverseAttributes

DiverseAttributessupportourcommitmenttodiversityandinclusionthroughage,ethnicity,gender,andraceandcontributetoandsupportinformeddecisionmaking.


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Thename,ageandbusinessexperienceofeachnomineefollows,aswellasadescriptionofthespecificexperience,qualifications,andcorecompetenciesofeachnomineethatledtotheBoard’sconclusionthatsuchnomineeshouldserveasdirector.

Jon E. Barfield Experience

AGE:68DIRECTOR SINCE: 2005

JonE.Barfield.68,ispresidentandchiefexecutiveofficerofLJHoldingsInvestmentCompanyLLC,aprivateinvestmentcompany.InMarch2012,heretiredfromBartechGroup,Inc.(“Bartech”)whereheservedsince1981aspresidentandfrom1995toMarch2012aschairmanandpresidentofthisindustry-leadingprofessionalservicesfirm,withheadquartersinSouthfield,Michigan,deliveringtalentmanagement,businessprocessoutsourcingandmanagedservicesprovidersolutionstoGlobal1,000firms.Bartechmanagesthedailyworkassignmentsformorethan120,000associatesandmorethan$4.7billioninannualprocurementformajoremployersaroundtheworld,makingBartech(nowownedbyImpellamGroup,PLC)oneofthelargesttalentacquisitionandmanagedserviceproviderfirmsintheUnitedStates.Duringthepastfiveyears,BarfieldpreviouslyservedasadirectorofBlueCrossBlueShieldofMichiganandGoodTechnologyCorporation.HehasbeenadirectorofCMSandConsumerssinceAugust2005.Skills and Qualifications:BarfieldbringstotheBoardlegalknowledgeandexperience,havingpracticedcorporateandsecuritieslawatSidleyAustinLLP.Hisqualificationstoserveasadirectorstemprimarilyfromhisexperiencesasaseniorleader,andhisvariedserviceasadirectorwithconsiderableexperienceregardinglegalriskoversightandriskmanagement,financialreporting,attractingandretainingkeytalentandrelatedhumanresourcesexperience,corporategovernance,customerserviceandmarketing,andmergersandacquisitions.HeservedformanyyearsaschairmanoftheauditcommitteeofthePrincetonUniversityBoardofTrustees.Core Competencies:• SeniorLeadership• Finance,AccountingorFinancialReporting• RegulatoryEnvironment/GovernmentalAffairs• RiskManagement• CustomerExperience• StrategicPlanningandGovernance• SustainabilityandEnvironmental• HumanResourcesandExecutiveCompensation


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Deborah H.Butler Experience


DeborahH.Butler.65,retiredinOctober2015astheexecutivevicepresidentofplanningandchiefinformationofficerofNorfolkSouthernCorporation(“NorfolkSouthern”),whichisengagedintherailtransportationofrawmaterials,intermediateproductsandfinishedgoods.ButlerjoinedNorfolkSouthernin1978andservedinpositionsofincreasingresponsibilityinoperationsuntilbeingnamedassistantvicepresidenttransportationcustomerservicein2000andvicepresidentcustomerservicesin2002,apositionshehelduntilherappointmentasexecutivevicepresidentin2007.ShehasbeenadirectorofCMSandConsumerssinceJanuary2015.Skills and Qualifications:Butler’squalificationsforserviceontheBoardincludeherextensiveexperienceinoperations,leadership,customerservice,sustainabilityandenvironment,safety,regulatoryenvironment,strategicplanningandinformationtechnologyderivedfromhervaryingrolesatNorfolkSouthern.ButlerpreviouslyservedaschairmanoftheboardofThoroughbredTechnologyandTelecommunications,LLC,aNorfolkSouthernsubsidiary,andpreviouslyservedasaboardmemberofTTXCompany,Inc.,whichprovidesrailcarsandrelatedfreightcarmanagementservicestotheNorthAmericanrailindustry.Core Competencies:• SeniorLeadership• Finance,AccountingorFinancialReporting• RegulatoryEnvironment/GovernmentalAffairs• RiskManagement• CustomerExperience• InformationTechnology/SafetyandSecurity• StrategicPlanningandGovernance• SustainabilityandEnvironmental• HumanResourcesandExecutiveCompensation• Lean

Kurt L.Darrow Experience


KurtL.Darrow.65,hasservedsince2003asthepresidentandchiefexecutiveofficerofLa-Z-BoyIncorporated(“La-Z-Boy”),anintegratedfurnitureretailerandmanufacturer.SincejoiningLa-Z-Boyin1979,hehasservedinpositionsofincreasedresponsibility,includingpresidentofLa-Z-BoyResidential,itslargestdivision.DarrowhasservedasaboardmemberofLa-Z-Boysince2003andwaselectedaschairmanoftheBoardin2011.HehasbeenadirectorofCMSandConsumerssinceNovember2013.Skills and Qualifications:Darrow’squalificationsforserviceontheBoardincludehisextensivepubliccompanyexperiencespanning40years,andhisthoroughstrategic,marketingandleadershipexperienceandcustomerorientationderivedfromhisvaryingrolesatLa-Z-Boy,includinghiscurrentchairmanandchiefexecutiveofficerroles.DarrowisamemberoftheBusinessLeadersforMichigan,anon-profitexecutiveleadershiporganization,andservesonitsexecutivecommittee.HeservesasamemberoftheProMedicaBoardofTrusteesandwaspreviouslychairmanoftheProMedicaMonroeRegionalHospitalBoardofTrustees.DarrowisaformerchairmanoftheAmericanHomeFurnishingsAllianceandcontinuestoserveasdirectoremeritus.HeservedasaTrusteeofAdrianCollegeuntilMay2011.Core Competencies:• SeniorLeadership• Finance,AccountingorFinancialReporting• RegulatoryEnvironment/GovernmentalAffairs• RiskManagement• CustomerExperience• StrategicPlanningandGovernance• SustainabilityandEnvironmental• HumanResourcesandExecutiveCompensation• Lean


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William D.Harvey Experience


WilliamD.Harvey.71,retiredinMarch2012aschairmanandchiefexecutiveofficerofAlliantEnergyCorporation(“Alliant”)anditstwoutilitysubsidiaries,InterstatePower&LightCompanyandWisconsinPower&LightCompany(“WPL”).HarveyservedinthosepositionssinceFebruary2006.AlliantisaMadison,Wisconsin-basedpublicutilityholdingcompany,whichprovidesregulatedelectricityandnaturalgasservicesthroughitssubsidiarycompanies.HeisageneralpartnerofShadeTreeInvestmentsLimitedPartnership,aprivatefamilyinvestmentgroup.HehasbeenadirectorofCMSandConsumerssinceAugust2012.HarveyhasservedasPresidingDirectorsinceMay2016.Skills and Qualifications:HarveybringstotheBoardlegalknowledgeandexperience,havingbegunhiscareerasanattorneyinprivatepracticeandservingasGeneralCounselofWPL.Harvey’squalificationsforserviceontheBoardincludehislong-termexperiencewithpublicutilityoperationsandpubliclytradedcompanies,knowledgeofcustomerperspectives,utilityandenvironmentalregulationsandsafetyanddiversityinitiatives.HarveycurrentlyservesasadirectorofSentryInsuranceCompany.Core Competencies:• SeniorLeadership• Finance,AccountingorFinancialReporting• RegulatoryEnvironment/GovernmentalAffairs• RiskManagement• CustomerExperience• InformationTechnology/SafetyandSecurity• UtilityExperience• StrategicPlanningandGovernance• SustainabilityandEnvironmental• HumanResourcesandExecutiveCompensation• Lean

Patricia K.Poppe Experience


PatriciaK.Poppe.51,hasservedsinceJuly2016aspresidentandchiefexecutiveofficerofCMSandConsumers.Priortothat,sheservedsinceMarch2015asseniorvicepresidentofdistributionoperations,engineeringandtransmissionforCMSandConsumers,withoverallresponsibilityforConsumers’electricandnaturalgasdistributionsystems,energyoperationsandelectrictransmission.Priortothat,sheservedsinceJanuary2011asvicepresidentofcustomerexperience,ratesandregulationofConsumers.ShecurrentlyservesontheboardofWhirlpoolCorporation.ShehasbeenadirectorofCMSandConsumerssinceMay2016.Skills and Qualifications:PoppeisqualifiedtoserveontheBoardbasedonherexperienceandknowledgegainedintheutilityandautomotiveindustries.Shehasextensiveutilityknowledge,includingcustomerexperienceandsatisfaction,ratesandregulation,generation,anddistribution.TheBoardbenefitsfromPoppe’spriorleadershiproleswithDTEEnergy,includingoverseeingfiveelectricgeneratingfacilities,andherexperienceholdingavarietyofplantmanagementpositionsintheautomotiveindustry.ShecurrentlyservesontheboardsofAEGIS,BusinessLeadersforMichigan,DetroitRegionalChamber,AmericanGasAssociationandEdisonElectricInstitute.Core Competencies:• SeniorLeadership• Finance,AccountingorFinancialReporting• RegulatoryEnvironment/GovernmentalAffairs• RiskManagement• CustomerExperience• InformationTechnology/SafetyandSecurity• UtilityExperience• StrategicPlanningandGovernance• SustainabilityandEnvironmental• HumanResourcesandExecutiveCompensation• Lean


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John G.Russell Experience


JohnG.Russell.62,hasservedsinceMay2016asChairmanoftheBoardsofCMSandConsumers.HeservedfromMay2010toJuly2016aspresidentandchiefexecutiveofficerofCMSandpresidentandchiefexecutiveofficerofConsumers.PriortothatheservedfromOctober2004toMay2010aspresidentandchiefoperatingofficerofConsumers;heservedfromDecember2001toJuly2004asexecutivevicepresidentandpresidentandchiefexecutiveofficer—electricofConsumers;andfromJuly2004toOctober2004asexecutivevicepresidentandpresident—electricandgasofConsumers.HeservesontheboardofHubbellIncorporated.HehasbeenadirectorofCMSandConsumerssinceMay2010.Skills and Qualifications:RussellisqualifiedtoserveontheBoardbasedontheknowledgeandexperienceacquiredthroughouthismorethan30yearswithConsumers.Hehasin-depthknowledgeofallaspectsoftheutility.Hisvastexperiencewithintheregulatedutilityindustry,hands-onexperienceandtheleadershippositionshehasheldhaveprovidedhimwithaperspectivefromwhichtheBoardgreatlybenefits.HecurrentlyservesontheboardofGrandValleyStateUniversity.RussellpreviouslyservedasadirectorontheboardsofBusinessLeadersforMichigan,TheRightPlace,Inc.,theMichiganChamberofCommerce,theAmericanGasAssociationandEdisonElectricInstitute.Core Competencies:• SeniorLeadership• Finance,AccountingorFinancialReporting• RegulatoryEnvironment/GovernmentalAffairs• RiskManagement• CustomerExperience• InformationTechnology/SafetyandSecurity• UtilityExperience• StrategicPlanningandGovernance• SustainabilityandEnvironmental• HumanResourcesandExecutiveCompensation

Suzanne F.Shank Experience


SuzanneF.Shank.58,hasservedsince2019aspresidentandchiefexecutiveofficerofSiebertWilliamsShank&Co.,LLC,afull-serviceinvestmentbankingandfinancialservicescompany.PriortothemergerofSiebertCisnerosShank&Co.,L.L.C.(“SiebertCisnerosShank”)andTheWilliamsCapitalGroup,L.P.in2019,Shankhadserved,since1996,aschiefexecutiveofficerandaco-founder,andsince2015,aschairwoman,ofSiebertCisnerosShank,afull-serviceinvestmentbankthatmanagedorco-managedover$2trillioninmunicipalbond,corporatebondandequitytransactions.Priortoherfinancialservicescareer,ShankwasastructuralengineerforGeneralDynamics.ShecurrentlyservesontheboardofPensareAcquisitionCorp.ShehasbeenadirectorofCMSandConsumerssinceJanuary2019.Skills and Qualifications:Shankbringsover30yearsofexperienceinthefinancialservicesindustry,includingextensiveexperiencedevelopingstrategiesfornewbusinessgrowthnationallyandmanagingfinancial,operationalandregulatorymatters.ShecurrentlyservesasadirectoroftheSkillmanFoundation,DetroitInstituteofArts,DetroitRegionalChamber,GlobalCitizenandInvestDetroit.ShankalsoservesontheWhartonGraduateBoardofTrustees,theSpelmanCollegeBoardofTrusteesandontheExecutiveCouncilonInfrastructurefortheBipartisanPolicyCenter.SheisalsoamemberoftheInternationalWomen’sForumandtheSecuritiesandExchangeCommission’sFixedIncomeMarketStructureAdvisoryCommittee.Core Competencies:• SeniorLeadership• Finance,AccountingorFinancialReporting• RegulatoryEnvironment/GovernmentalAffairs• CustomerExperience• StrategicPlanningandGovernance


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Myrna M.Soto Experience


MyrnaM.Soto.51,hasservedsinceMarch2019asthechiefoperatingofficerofDigitalHands(aManagedCyberSecurityServicesProvider)andaventureadvisorforForgePointCapital(formerlyknownasTridentCapitalCybersecurity)(“ForgePoint”),aventurecapitalfirminvestingexclusivelyinearlystagecybersecuritycompanies.SheservedasapartneratForgePointsinceApril2018.AtForgePoint,SotoprovidesadvisoryandoperationaloversighttoForgePoint’sportfoliocompaniesfromtimetotime.PriortojoiningForgePoint,sheservedsinceAugust2015astheseniorvicepresidentandglobalchiefinformationsecurityofficerofComcastCorporation(“Comcast”),whichoperatesasaworldwidemediaandtechnologycompany.Sotoservedfrom2009toAugust2015asseniorvicepresidentandchiefinfrastructureandinformationsecurityofficer.Sotowasresponsibleforthealignmentanddevelopmentofcyberanddatasecuritystrategiesandpolicies.PriortojoiningComcastinSeptember2009,Sotoservedsince2005asvicepresidentofinformationtechnologygovernanceandchiefinformationsecurityofficerforMGMResortsInternational,aglobalhospitalitycompany.SotocurrentlyservesontheboardofSpiritAirlines,Inc.andPopular,Inc.ShehasbeenadirectorofCMSandConsumerssinceJanuary2015.Skills and Qualifications:Sotobringsover25yearsoffocusedinformationtechnologyandsecurityexperiencefromavarietyofindustries,includingfinancialservices,hospitality,insuranceandriskmanagementandgamingandentertainment.SotopreviouslyservedasViceChairmanandexecutivecommitteeboardmemberoftheHispanicITExecutiveCouncilandasamemberoftheBoardofTrusteesofCabriniCollege.Core Competencies:• SeniorLeadership• Finance,AccountingorFinancialReporting• RegulatoryEnvironment/GovernmentalAffairs• RiskManagement• CustomerExperience• InformationTechnology/SafetyandSecurity• StrategicPlanningandGovernance• SustainabilityandEnvironmental• HumanResourcesandExecutiveCompensation• Lean

John G.Sznewajs Experience


JohnG.Sznewajs.52,hasservedsince2007asthevicepresidentandchieffinancialofficerofMascoCorporation(“Masco”),whichoperatesasagloballeaderindesign,manufactureanddistributionofbrandedbuildingproducts.SznewajsisresponsibleforstrategicandoperationalfinancialfunctionsandalsohasoversightofinformationtechnologyandseveralofMasco’sEuropeanbusinesses.SznewajsalsoservedasthetreasurerofMascofrom2005until2016.HehasbeenadirectorofCMSandConsumerssinceJuly2015.Skills and Qualifications:Inadditiontohisfinancialexpertise,Sznewajshasalmost20yearsofexperienceinbusinessandcorporatedevelopment.Hisextensivebackgroundandknowledgeinfinancialmatters,whichhehasgainedoverhiscareer,alongwithin-depthexperienceinenterprise-widestrategy,qualifyhimtoserveontheBoard.HeservesasdirectorandtreasureroftheDetroitZoologicalSocietyandasatrusteeofTheRoeperSchool.Core Competencies:• SeniorLeadership• Finance,AccountingorFinancialReporting• RegulatoryEnvironment/GovernmentalAffairs• RiskManagement• InformationTechnology/SafetyandSecurity• StrategicPlanningandGovernance• SustainabilityandEnvironmental• HumanResourcesandExecutiveCompensation• Lean


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Ronald J.Tanski Experience


RonaldJ.Tanski.67,servedaspresidentandchiefexecutiveofficerofNationalFuelGasCompany(“NationalFuel”),adiversifiedenergycompanyfromMarch2013throughhisretirementonJuly1,2019.Mr.TanskijoinedNationalFuelasanattorneyin1979andservedinpositionsofincreasedresponsibilityduringhiscareer.TanskicontinuestoserveasadirectorofNationalFuel.HehasbeenadirectorofCMSandConsumerssinceNovember2019.Skills and Qualifications:Tanskibrings40years’experienceinboththeregulatedandnon-regulatedgasbusiness.HavingbegunhiscareerasanattorneywithNationalFuel,theBoardwillbenefitfromhislegalknowledgeandexperience.TanskiwasamemberoftheAmericanGasAssociationandtheInterstateNaturalGasAssociationofAmerica(“INGAA”),havingservedasINGAA’schair.TanskiservesontheboardofmanagersoftheBuffaloMuseumofScience.Core Competencies:• SeniorLeadership• Finance,AccountingorFinancialReporting• RegulatoryEnvironment/GovernmentalAffairs• InformationTechnology/SafetyandSecurity• UtilityExperience• StrategicPlanningandGovernance• SustainabilityandEnvironmental• HumanResourcesandExecutiveCompensation

Laura H.Wright Experience


LauraH.Wright.60,retiredfromSouthwestAirlinesCo.(“Southwest”)asseniorvicepresidentoffinanceandchieffinancialofficer,positionsshehadheldsinceJuly2004.Duringher25-yearcareerwithSouthwest,sheheldvariouspositions,includingvicepresidentoffinanceandtreasurer,treasurer,assistanttreasurerandotherfinancialroles.SouthwestisbasedinDallas,Texas,andisengagedintheoperationofpassengerairlinesthatprovidescheduledairtransportationintheUnitedStates.Until2020,sheconsultedunderGSBAdvisoryLLC,whichshefoundedin2012,toprovideinterimexecutiveandfinancialmanagementtogrowthandnon-profitcompanies.WrightcurrentlyservesasaboardmemberofTEConnectivityLtd.andSpiritAeroSystemsHoldings,Inc.UntilFebruary2019,sheservedasatrusteeofPebblebrookHotelTrust.ShehasbeenadirectorofCMSandConsumerssinceFebruary2013.Skills and Qualifications:AsanactivecertifiedpublicaccountantinthestateofTexas,theBoardbenefitsfromWright’sextensivetechnicalexpertiseandexperienceinfinancialaccountingandreporting,corporatefinanceandriskmanagement.Shehasextensiveexperienceworkinginaconsumer-orientedbusinessenvironment.PriortoSouthwest,WrightwasamanagerwithArthurYoung&Co.inDallas.Core Competencies:• SeniorLeadership• Finance,AccountingorFinancialReporting• RegulatoryEnvironment/GovernmentalAffairs• RiskManagement• CustomerExperience• InformationTechnology/SafetyandSecurity• StrategicPlanningandGovernance• SustainabilityandEnvironmental• HumanResourcesandExecutiveCompensation

Each of the CMS and Consumers Boards recommend a vote FOR the election of each Director nominee namedabove.


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CORPORATE GOVERNANCE

Governance Guidelines and MaterialsTheBoardandmanagementreviewandmonitorgovernancetrendsandbestpracticesonanongoingbasis.TheBoardhasadoptedPrinciplesthatreflectcorporateandBoardpracticesaswellasSecuritiesandExchangeCommission(“SEC”)rulesandtheNewYorkStockExchange(“NYSE”)listingstandards.TheGovernanceCommitteeisresponsibleforoverseeingandreviewingourPrinciplesatleastannuallyandrecommendinganyproposedchangestotheBoardforapproval.ThePrinciplesintendtoserveasaflexibleframeworkwithinwhichtheBoardanditsCommitteesoperate.ExceptfortheExecutiveCommittee,theBoardhasadoptedchartersforeachofthestandingCommitteesthatdetailtheirpurposes,dutiesandauthority,composition,meetingsandresourcesaswellasotheraspectsofCommitteeactivities(“Charters”),whicharefurtherdescribedunderBoard and Committee Information below.EachCommitteereviewsitsCharterannuallyandrecommendschangestotheGovernanceCommitteeforreviewandrecommendationtotheBoardforapproval.

ThecurrentversionofourPrinciples,AmendedandRestatedBylaws(“Bylaws”),Charters,EmployeeandDirectorCodesofConduct(“Codes”)andothercorporategovernancematerialsareavailableatwww.cmsenergy.com/corporategovernance.

Board of DirectorsTheBoardprovidesdirectionandoversightwithrespecttoouroverallperformance,strategicdirectionandsignificantcorporatepolicies.TheBoardapprovesmajorinitiatives,advisesonkeyfinancialandbusinessobjectives,andmonitorsprogresswithrespecttothesematters.Directorsarekeptinformedofourbusinessbyvariousreportsanddocumentsprovidedtothemonaregularbasis,includingoperatingandfinancialreportsmadeatBoardandCommitteemeetings.TheBoardhasfullanddirectaccesstoallmembersofmanagementandmayhireconsultantsandadvisorsasdeemednecessary.

Board Leadership StructureAsstatedinourPrinciples,theBoardhasdeterminedthatforthepresenttime,itisinthebestinterestsoftheCorporationandshareholderstokeeptheofficesofChiefExecutiveOfficer(“CEO”)andChairmanseparatetoenhanceoversightresponsibilities.TheBoardbelievesthatthisleadershipstructurepromotesindependentandeffectiveoversightofmanagementonkeyissuesrelatingtolong-rangebusinessplans,long-rangestrategicissuesandrisks.Tofurtherpromoteindependentandeffectiveoversightofmanagement,ourPrinciplesalsoprovidethatatanytimewhentheChairmanisnotconsideredindependentunderNYSElistingstandards,aPresidingDirectorwillbechosenbytheindependentdirectorstocoordinatetheactivitiesandpresideattheexecutivesessionsattendedonlybytheindependentmembersoftheBoard.ThePresidingDirectorprovidestheindependentdirectorswithakeymeansforcollaborationandcommunication.UnderourBylaws,thePresidingDirectorwill:(1)conveneandchairmeetingsoftheindependentdirectorsinexecutivesessionnolessthanonceeachyear;(2)presideatmeetingsoftheBoardatwhichtheChairmanoftheBoardisnotpresent,includingexecutivesessionsoftheindependentdirectors;(3)solicitindependentdirectorsforadviceonagendaitemsformeetingsoftheBoard;(4)serveasaliaisonbetweentheChairmanoftheBoard,thePresidentandtheindependentdirectors;and(5)performsuchotherdutiesasmaybeassignedbytheBoardfromtimetotime.Russell,thecurrentChairman,isnotamemberofmanagement,butasformerCEOhewasnotconsideredindependentunderNYSElistingstandardsuntilJuly2019;therefore,onMay3,2019,Harveywasre-electedasPresidingDirectorfortheBoardforaone-yearterm.


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Risk OversightTheBoard’sriskoversightprocessincludesregularreportsfromseniormanagementonareasofmaterialoperational,legal,regulatory,financial,strategic,compliance,environmental,liability,safety,informationtechnology,physicalsecurity,cybersecurityandreputationalrisk.TheBoardreceivesanannualriskmanagementreviewfromtheExecutiveDirectorofRiskinadditiontotheriskoversightfunctionsperformedbythevariousCommitteesoftheBoard.Theseinclude:(1)areviewbytheAuditCommitteeoftherisksassociatedwithoperatingandfinancialactivitieswhichcouldimpactitsfinancialandotherdisclosurereporting,aswellasareviewofpoliciesonriskassessment,controlsandaccountingriskexposure;(2)theAuditCommittee’sreviewandapprovalofriskmanagementpolicies;(3)areviewbytheCompensationandHumanResourcesCommittee(“CompensationCommittee”)ofthepotentialrisksassociatedwiththeCorporation’sexecutivecompensationpoliciesandpractices;and(4)theCompensationCommittee’sreviewofmanagement’sassessmentofthelikelihoodthattheincentivecompensationplanswillhaveamaterialadverseimpact.

Cybersecurity OversightTheBoardisresponsibleforoverseeingtheCorporation’scybersecurityrisk.CybersecurityrisksareincludedintheriskreportstotheAuditCommitteediscussedabove.TheAuditCommitteereceivescybersecurityupdatesthatfocusonourmostcriticalassets,cybersecuritydrills,exercises,mitigationofcybersecurityrisksandassessmentsbythird-partyexperts.

Political Contribution OversightTheBoardoverseesourpoliticalengagementpolicies,programsandpractices.TheGovernanceCommitteeisalsoresponsibleforadvisingandassistingtheBoardwithrespecttoourpoliticalengagement.Ourpolicies,includingthegovernanceanddecision-makingprocessforcorporatepoliticalcontributions,aredescribedindetailathttps://www.cmsenergy.com/corporate-governance/political-engagement.WebelieveBoardoversightofourpoliticalactivityalongwiththeBoard’salignmentwithourcurrentdisclosurestandardsprovidethenecessaryaccountabilitytoensurethatpoliticalactivitiesareconductedinthebestinterestofcustomers,shareholdersandotherstakeholders.ThroughBoardoversight,wehavemaintainedarigorouscomplianceprocesstoensurethatitspoliticalactivitiesarelawful,properlydisclosedandalignwithourCodes.

Public Responsibility and Sustainability OversightTheBoardoverseesourpublicresponsibilityandsustainabilitypractices.TheGovernanceCommitteeisalsoresponsibleforadvisingandassistingtheBoardwithrespecttoourpublicresponsibilityandsustainabilitymatters.Wearecommittedtocorporateresponsibilitythroughourbusiness,culture,environmentandourcommunities–past,presentandfuture.WeconductbusinesssafelyandethicallytopreservetheenvironmentandsustainourcommunitieswhileservingourcustomersacrossthestateofMichigan.Thisalignswithourpurpose,whichistoachieveworldclassperformancewhiledeliveringhometownservice.Wemeasureourprogresstowardsthispurposebyconsideringourimpactonthe“triplebottomline”ofpeople,planet,andprofit,whichisunderpinnedbyperformance;thisconsiderationtakesintoaccountnotonlytheeconomicvaluethatwecreate,butalsoourresponsibilitytosocialandenvironmentalgoals.

Theplanetelementofthetriplebottomlinerepresentsourcommitmenttoprotecttheenvironment,whichextendsbeyondcomplyingwiththevariousstateandfederallawsandregulations.


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Wearecommittedtocaringfortheenvironmentaspartofourstrategicdirection.Someofourenvironmentalandsustainabilityachievementsincludethefollowing:

• decreasedcombinedpercentageofelectricsupply(self-generatedandpurchased)fromcoalby18percentagepointssince2015

• reducedcarbondioxideemissionsbyover35percentsince2005

• reducedtheamountofwaterusedtogenerateelectricityby31percentsince2012

• reducedlandfillwastedisposalbyover1.3milliontonssince1992

• reducedmethaneemissionsby17percentsince2012.

Weprovideextensivepublicreportingandareforthcomingindisclosuresaboutourenvironmentalstewardshipandlong-termstrategy.WeaddressissuesrelatedtoclimatechangeinSEC,EnvironmentalProtectionAgencyandotherregulatoryagencyfilings,andbyvoluntarilyreportingourclimateriskstrategyandrelateddatatoCDP(formerlyknownastheCarbonDisclosureProject).WealsopublishanannualSustainabilityReportandin2018,publishedourfirstClimateAssessmentReport,whichaddressesthelong-termimplicationsofourelectricsupplyfuelmixandcapitalexpenditureplans.In2019,wecompletedtheEEIESG&SustainabilityReportandpublishedourMethaneReductionPlan,whichexplainsourplansforachievingnetzeromethaneemissionsfromournaturalgasdeliverysystemby2030.Wehavealsoannouncedourgoaltoachievenetzerocarbonemissionsby2040.

Wecontinuallyupdateandenhancedisclosuresrelatingtooursustainabilityefforts.Thesedisclosuresandupdatescanbefoundonourwebsiteathttps://www.cmsenergy.com/environment.

Wehavecreatedacleaner,moresustainableenergyfuturebytakingaleadershippositioninreducingairemissionsandwaterusage,savinglandfillspaceandboostingtheamountofrenewableenergysuppliedtocustomers.Wehavealsoprovided,andintendtocontinueproviding,appropriatedisclosurestoourshareholdersregardingclimatechangeandtherisksitposes.

Shareholder EngagementAspartofouroverallcorporategovernance,wehaveanongoingoutreachprogramtodevelopandmaintaincommunicationwithourinvestorsinregardtogovernanceandcompensationissues.WevaluethesediscussionsandtheBoardconsiderspertinentfeedbackwhenevaluatingcorporategovernanceandcompensationissues.Inaddition,managementregularlyparticipatesininvestorandindustryconferencesthroughouttheyeartodiscussperformance,environmental,socialandgovernancetopics,andshareitsperspectiveonbusinessandindustrydevelopments.ShareholdersmayalsocontacttheBoardwithanyinquiryorissue,bythemethodsdescribedbelowandtheBoardwillrespondasappropriate.

Board Communication ProcessInterestedparties,includingshareholders,employeesorthirdpartiescancommunicatewiththeBoard,Committee,theindependentdirectorsasagroup,oranindividualdirector,includingtheChairman,bysendingwrittencommunicationstotheCorporateSecretary,OneEnergyPlaza,Jackson,Michigan49201.Envelopesshouldbeclearlymarked“BoardCommunication”or“DirectorCommunication.”

TheCorporateSecretarywillreviewandforward,asappropriate,suchcorrespondenceinordertofacilitatecommunicationswiththeBoardoritsCommittees,theindependentdirectorsorindividualmembers.


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Anyshareholder,employeeorthirdpartywhowishestosubmitacomplianceconcerntotheBoardorapplicableCommittees,includingcomplaintsregardingaccounting,internalaccountingcontrolsorauditingmatterstotheAuditCommittee,maydosobyanyofthefollowingmeans:

AllsuchcommunicationswillbereviewedbytheChiefComplianceOfficer(whoreportsdirectlytotheAuditCommittee)priortobeingforwardedtotheBoardorapplicableCommitteesordirectors,asappropriate.

Identification of Director CandidatesTheGovernanceCommitteeisresponsibleforidentifyingandevaluatingdirectorcandidates,seekingcandidatestoserveontheBoardconsistentwithcriteriaapprovedbytheBoard,andrecommendingaslateofcandidatesforelectionattheAnnualMeeting.Therearenumerousstepsinidentifyingdirectorcandidates.

TheGovernanceCommitteewillconsidershareholder-recommendeddirectornomineesinaccordancewiththerequirementsofourBylaws.TheinformationthatmustbeincludedandtheproceduresthatmustbefollowedbyashareholderwishingtorecommendadirectorcandidatefortheBoard’sconsiderationarethesameaswouldberequiredunderourBylawsiftheshareholderwishedtonominatethatcandidatedirectly.TheGovernanceCommitteewillconsiderdirectorcandidatesrecommendedbyshareholdersonthesamebasisthattheGovernanceCommitteeevaluatesothernomineesfordirector.

CMSBylawsalsopermitashareholder,oragroupofupto20shareholders,whohaveowned,continuouslyforatleastthreeyears,atleastthreepercentoftheoutstandingsharesofcommonstockoftheCorporationtosubmitdirectornominees(notgreaterthantwoor20%oftheBoard)forinclusioninitsproxystatementiftheshareholder(s)andthenominee(s)satisfytherequirementsintheCMSBylaws.


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AdirectornominationthatisnotsubmittedforinclusionintheproxystatementbutinsteadissoughttobepresenteddirectlyattheAnnualMeeting,mustcomplywiththeadvancenoticeprovisionsinourBylaws.

AnyrecommendationornominationsubmittedbyashareholderregardingadirectorcandidatemustbesubmittedwithinthetimeframeprovidedinourBylawsfordirectornominationsandmustinclude(a)astatementfromtheproposednomineethatheorshehasconsentedtothesubmissionoftherecommendationornominationand(b)suchotherinformationabouttheproposednominee(s)and/ornominatingshareholder(s)asisrequiredbyourBylaws.

WrittennoticemustbesenttotheCorporateSecretary,OneEnergyPlaza,Jackson,Michigan49201.YoumayaccessourBylawsatwww.cmsenergy.com/corporategovernance.

Director Candidate QualificationsDirectorcandidatesaresoughtwhoseparticularbackground,experiencesandqualitiesmeettheneedsoftheBoard.TheBoardvalueshighstandardsofintegrity,businessethicsandsoundjudgment,whichaddvalue,perspectiveandexpertisetotheBoard’sdeliberations.TheGovernanceCommitteeassesses,onaregularbasis,thequalificationsneededbytheBoardinlightoftheBoard’scurrentcompositionandrecommendschangestotheBoardwhenappropriate;anddeterminesfromtimetotimeothercriteriaforselectionandretentionofBoardmembers.TheGovernanceCommitteehasnotestablishedanyspecific,minimumqualificationsthatmustbemetbydirectorcandidatesoridentifiedanyspecificqualitiesorskillsthatthedirectorsmustpossess.AlthoughtheGovernanceCommitteehasnotestablishedaformalpolicyondiversity,ithasadopted,asageneralguideline,thattheBoardwillincludeabroadspectrumofdiversebusiness,political,academic,demographicandsocialinterests.TheGovernanceCommitteetakesawiderangeoffactorsintoaccountinevaluatingthesuitabilityofdirectorcandidates,includingexperienceinbusiness,leadership,regulatedutility,sustainabilityandenvironment,riskmanagement,customerexperience,safety,governance,accounting,finance,legal,informationtechnology,leanpractices,andcompensationandhumanresources,whichwillbringadiversityofthought,perspective,approachandopiniontotheBoard.TheGovernanceCommitteedoesnothaveasinglemethodforidentifyingdirectorcandidatesbutwillconsidercandidatessuggestedbyawiderangeofsources.

TanskiisstandingforelectionbytheshareholdersforthefirsttimeatthisAnnualMeeting.TanskiwasinitiallyidentifiedasapotentialnomineebyaDirectorandrecommendedfornominationbytheGovernanceCommittee.TanskiwaselectedtotheBoardeffectiveNovember8,2019.TanskiistheonlydirectornomineefortheAnnualMeetingwhoisstandingforelectionbytheshareholdersforthefirsttime.

Director TenureTheBoardbelievesthatdiversityintenureaddsvalue,perspectiveandexpertisetotheBoard’sdeliberations,withlonger-tenureddirectorsbringingadeepunderstandingoftheCorporationandshorter-tenureddirectorsbringingafreshperspective.Overthepastsevenyears,theBoardhasaddedeightnewdirectors.Directortermlimits,includedinourPrinciples,statethatDirectors(otherthantheCEO)firstelectedafterJanuary2017,maynotserveontheBoardformorethan15yearsandCommitteechairs(otherthantheExecutiveCommittee)maynotserveinsuchroleformorethanfiveyears.

Director IndependenceDirectorsBarfield,Butler,Darrow,Ewing,Harvey,Russell,Shank,Soto,Sznewajs,Tanski,andWrightare“independent”,asdeterminedbytheBoard,inaccordancewiththeNYSElistingstandards,applicablerulesandregulationsoftheSEC,ourmorestringentIndependenceStandards,asset


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forthinourPrinciples,andtakingintoconsiderationallbusinessrelationshipsbetweentheCorporationanditssubsidiariesandeachnon-employeedirector.PoppeisnotindependentduetoheremploymentrelationshipwiththeCorporation.

TheBoardidentifiedthefollowingrelationshipswhichweredeemedimmaterialtosuchDirectors’independence:

• CharitablecontributionsmadetoorganizationsofwhichcertainoftheDirectorsareaffiliated.

• Purchasesandsalesofservices,commodities,materialsorequipment,toandfromentities,duringtheordinarycourseofbusiness,onwhichcertainoftheDirectorsserveandallsuchtransactionsweresignificantlybelowonepercentoftheconsolidatedgrossrevenuesofthecounterpartytothetransaction.

• RetailelectricityornaturalgaspurchasesfromConsumersatratesorchargesfixedinconformitywithlaworgovernmentalauthority.

Inaddition,theBoardhasaffirmativelydeterminedthateachmemberoftheAuditCommitteeandCompensationCommitteeisindependentunderNYSElistingstandards,rulesandregulationsoftheSECand,ifapplicable,theInternalRevenueCode(“IRC”).Furthermore,theBoardhasdeterminedthattheabilityofourAuditCommitteememberstoserveonourAuditCommitteeisnotimpairedbyserviceonotherauditcommittees.

TheIndependenceStandards,adoptedbytheBoardaspartofourPrinciples,canbefoundatwww.cmsenergy.com/corporategovernance.

CMS Majority Voting StandardUndertheCMSArticlesofIncorporation,CMSBylawsandourPrinciples,anydirectornomineewhoreceiveslessthanamajorityofthevotescastbytheCMSshareholdersataregularelectionshallpromptlytenderhisorherresignation.Forthispurpose,amajorityofthevotescastmeansthatthenumberofsharesvoted“for”adirectormustexceed50%ofthevotescastwithrespecttothatdirector,notcountingabstentions.Uponreceiptofsuchatenderedresignation,theCMSGovernanceCommitteeshallconsiderandrecommendtotheCMSBoardwhetherornottoaccepttheresignation.TheCMSBoardwillactontheCMSGovernanceCommittee’srecommendationwithin90daysfollowingcertificationofourshareholdervote,andcontemporaneouslywiththatactionwillcauseCMStopubliclydisclosetheCMSBoard’sdecisionwhethertoacceptordeclinesuchdirector’sresignationoffer(andthereasonsforrejectingtheresignationoffer,ifappropriate).ThedirectorwhotendershisorherresignationpursuanttothestandardwillnotbeinvolvedineithertheCMSGovernanceCommittee’srecommendationortheCMSBoard’sdecisiontoacceptordeclinetheresignation.Duetocomplicationsthatariseintheeventofacontestedelectionofdirectors,thisstandardwouldnotapplyinthatcontext,andtheunderlyingpluralityvoterequirementofMichiganlawwouldcontrolanycontesteddirectorelections.

Director EducationBoardmembersareexpectedtoattendatleastonecontinuingeducationprogramannually,sponsoredbyarecognizedutilityindustryorcorporategovernanceorganization.AllDirectornominees,exceptone,attendedatleastonecontinuingeducationprogramin2019.Also,wehaveaninternaldirectoreducationprogram.Theinternalprogramincludescorporateandindustryinformationdisseminatedthroughorientationprograms,businesstrainingmodulesandreportsandoperationalsitevisits.


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Board, Committee and Director EvaluationsTheBoardiscommittedtocontinuousself-improvement,andBoardandCommitteeevaluationsareanimportanttoolforpromotingeffectiveness.TheBoardconductsaperformanceevaluationannuallyandperiodicallyengagesathirdpartytoconductindividualDirectorpeerevaluations.TheGovernanceCommittee,inconsultationwiththeChairman,overseestheBoard,CommitteeandDirectorevaluationprocesses.

BoardandCommitteeevaluationsareconductedfortheBoardandeachstandingCommittee.EachDirectorparticipatesintheprocessbycompletingaquestionnairethatreviewsthepreviousyear’sperformance.Thequestionnaireassesses,amongotheritems,Board:1)effectiveness,2)meetingprocedures,3)operations,4)composition,5)accountability,and6)futurechallenges.Directorsmaychoosetoprovidetheirfeedbackanonymously.TheDirectorsthendiscusstheevaluationresultsinexecutivesession.Policiesandpracticesarethenupdatedtoaddressfeedback,asappropriate.

DirectorpeerevaluationsprovideDirectorsanopportunitytoevaluateeachotherandidentifyopportunitiesfortheirowngrowthanddevelopment.Peerevaluationsanddevelopmentfollow-upsarefacilitatedbyanindependentthirdpartyandincludeconfidential,open-ended,one-on-oneinterviewswitheachDirector.TheBoardhasconductedtheseperiodicpeerevaluationssince2008.ThelatestDirectorpeerevaluationcyclebeganin2018.

Board and Committee InformationTheCMSandConsumersBoardeachmeteighttimesduring2019.OurPrinciplesstatetheexpectationthateachDirectorwillattendallscheduledBoardandCommitteemeetingsofwhichheorsheisamember,aswellastheCorporation’sannualmeetingofshareholders.AllDirectorsservingduring2019attended100%oftheBoardandassignedCommitteemeetings.Allthen-currentBoardmembersattendedthe2019annualmeetingofshareholders.

TheBoardhasfivestandingCommitteesincludinganAuditCommittee,aCompensationCommittee,anExecutiveCommittee,aFinanceCommitteeandaGovernanceCommittee.ThemembersandtheresponsibilitiesofthestandingCommitteesoftheBoardsarelistedbelow.EachCommitteeiscomposedentirelyof“independent”Directors,asthattermisdefinedbytheNYSElistingstandardsandourPrinciplesdescribedabove.Committeesmayalsoinvitemembersofmanagementorotherstoattendtheirmeetingsastheydetermineappropriate.Popperoutinelyattendscommitteemeetings.

Onaregularly-scheduledbasis,thenon-employeeDirectorsmeetinexecutivesession(thatis,withnoemployeeDirectorspresent)andmayinvitesuchmembersofmanagementtoattendastheydetermineappropriate.Atleastonceeachyear,theindependentDirectorsmeetinexecutivesessioninconformancewiththeNYSElistingstandards.In2019,theCMSindependentDirectorsmetfourtimesandtheConsumersindependentDirectorsmetfourtimes.In2019,PresidingDirectorHarveyorRussell,onceindependent,presidedovertheexecutivesessionsofindependentDirectors.


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Members*CommitteeChairperson

2019MeetingsCommittees PrimaryResponsibilities CMS Consumers

Audit Committee

DeborahH.ButlerSuzanneF.ShankMyrnaM.SotoJohnG.SznewajsLauraH.Wright*Allmembersarefinanciallyliterateandan“AuditCommitteeFinancialExpert”assuchtermisdefinedbytheSEC.

• Overseetheintegrityofconsolidatedfinancialstatementsandfinancialinformation,thefinancialreportingprocessandthesystemofinternalaccountingandfinancialcontrolsandtoretainindependentauditors.

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• Pre-approveallauditandnon-auditservicesprovidedbytheindependentauditors,assesstheindependentauditors’qualificationsandindependenceandreviewtheindependentauditors’performance.

• OverseecompliancewithapplicablelegalandregulatoryrequirementsandwiththeCodes.

• Overseeourriskmanagementpolicies,controlsandexposures,includingcyber.

• ReviewtheperformanceoftheinternalauditfunctionandpreparetheReportoftheAuditCommitteeforinclusionintheProxyStatement.

Compensationand HumanResourcesCommittee

JonE.BarfieldKurtL.Darrow*StephenE.EwingRonaldJ.Tanski(1)

• ReviewandapprovetheexecutivecompensationstructureandpoliciesandsettheCEOcompensationlevel.

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• ReviewandrecommendtotheBoardincentivecompensationplans,reviewandapprovethegrantofstockandotherstock-basedawardspursuanttotheincentiveplansandreviewandapprovecorporatefinancialandbusinessgoalsandtargetawards,andthepaymentofperformanceincentives,pursuanttotheannualincentiveplans.

• ProduceanannualreportoftheCompensationCommitteetobeincludedintheProxyStatementasrequiredbySECrulesandregulations.

• ReviewandapprovetheCEO’sselectionofcandidatesforofficerpositionsandrecommendsuchcandidatestotheBoardforannualoradhocelections.

• Reviewandapproveofficerstockownershipguidelinesandcompliance.

(1)JoinedthecommitteeinNovember2019

• ReviewandadvisetheBoardconcerningthemanagementsuccessionplanandreviewtheorganizationalandleadershipdevelopmentplansandprograms.

FinanceCommittee

DeborahH.ButlerSuzanneF.ShankJohnG.Sznewajs*RonaldJ.Tanski(1)LauraH.Wright

• ReviewandmakerecommendationstotheBoardconcerningthefinancingandinvestmentplansandpoliciesforfundedemployeebenefitplans.

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• Approveshort-andlong-termfinancingplans. • Approvefinancialpoliciesrelatingtocashflow,capital

structureanddividends.

• RecommendBoardactiontodeclaredividends.

(1)JoinedthecommitteeinNovember2019

• ReviewFinancialAuthoritiesPolicythatsetsouttheapprovalrequirementsforvariousfinancialtransactionsandrecommendappropriatechanges.Reviewandapprovepotentialprojectinvestmentsandothersignificantcapitalexpendituresandmonitortheprogressofsignificantcapitalprojects.

Governance,Sustainabilityand PublicResponsibilityCommittee

JonE.Barfield*KurtL.DarrowMyrnaM.Soto

• EstablishandreviewourPrinciples,considercandidatesproperlyrecommendedbyshareholders,identifyandrecommenddirectorcandidates,considerresignationsofdirectors,andreviewpublicresponsibilitymatters.

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• RecommendwaysfortheBoardtoenhanceoverallperformanceandeffectiveness.

• AnnuallyreviewtheoperationandperformanceoftheBoardandCommittees.

• ReviewtheCodesandrecommendactionstotheBoardincaseswheredirectorshaveviolatedtheDirectors’Code.

• Reviewstakeholderoutreach,stewardshipandcorporatesocialresponsibilitymattersandoverseesustainabilitymatters.

• Reviewpoliticalandcharitablecontributions.ExecutiveCommittee

JonE.BarfieldKurtL.DarrowWilliamD.HarveyJohnG.Russell*JohnGSznewajsLauraH.Wright

• ExercisethepowerandauthorityoftheBoardasmaybenecessaryduringtheintervalsbetweenBoardmeetings,subjecttosuchlimitationsasareprovidedbylaworbyresolutionoftheBoard.

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Compensation RiskManagementannuallyundertakesacomprehensivereviewofthecompensationpoliciesandpracticesthroughouttheorganizationinordertoassesstheriskspresentedbysuchpoliciesandpractices.

Followingthisyear’sreview,wehavedeterminedthatsuchpoliciesandpracticesarenotreasonablylikelytohaveamaterialadverseeffectonCMSorConsumers.Management’sanalysisanddeterminationwerereportedtoandreviewedbytheCompensationCommittee.

Codes of EthicsWehaveadoptedanemployeecodeofethics,titled“CMSEnergy2020CodeofConduct”(“Employees’Code”)thatappliestotheCEO,ChiefFinancialOfficer(“CFO”)andChiefAccountingOfficer(“CAO”),aswellasallotherofficersandemployeesofCMSandConsumers.CMSandConsumershavealsoadoptedadirectorcodeofethicstitled“2020BoardofDirectorsCodeofConduct”(“Directors’Code”)thatappliestothemembersoftheBoard.TheGovernanceCommitteeannuallyreviewstheCodesandrecommendschangestotheBoard,asappropriate.TheEmployees’CodeisadministeredbytheChiefComplianceOfficer,whoreportsdirectlytotheAuditCommittee.TheAuditCommitteeoverseescompliancewiththeCodes.AnyallegedviolationoftheDirectors’CodewillbeinvestigatedbydisinterestedmembersoftheAuditCommittee,orifnone,bydisinterestedmembersoftheBoard.TheGovernanceCommitteewouldrecommendappropriateactiontotheBoardintheeventadeterminationismadethatadirectorviolatedtheDirectors’Code.TheCodesandanywaiversof,oramendmentsorexceptionsto,aprovisionoftheEmployees’CodethatappliestotheCEO,CFO,CAOorpersonsperformingsimilarfunctionsandanywaiversof,orexceptionsto,aprovisionofourDirectors’Codewillbedisclosedonourwebsiteatwww.cmsenergy.com/complianceandethics.Nosuchwaiversorexceptionshavebeengranted.

Related Party TransactionsCMS,Consumersortheirsubsidiariesmayoccasionallyenterintotransactionswithrelatedparties.“RelatedParties”includedirectorsorexecutiveofficers,beneficialownersofmorethan5%ofourcommonstock,familymembersofsuchpersons,andentitiesinwhichsuchpersonshaveadirectorindirectmaterialinterest.AssetforthinourCodes,weconsiderarelatedpartytransactiontohaveoccurredwhenaRelatedPartyentersintoatransactioninwhichweareparticipating,thetransactionamountismorethan$10,000andtheRelatedPartyhasorwillhaveadirectorindirectmaterialinterest(“RelatedPartyTransaction”).AnyRelatedPartyTransactionmustbereportedtous.

InaccordancewithourCodesandtheAuditCommitteeCharter,RelatedPartyTransactionsmustbepre-approvedbytheAuditCommittee.Indrawingitsconclusiononanyapprovalrequest,theAuditCommitteeconsidersthefollowingfactors:

• Whetherthetransactioninvolvestheprovisionofgoodsorservicesthatareavailablefromunaffiliatedthirdparties;

• Whetherthetermsoftheproposedtransactionareatleastasfavorableasthosethatmightbeachievedwithanunaffiliatedthirdparty;

• ThesizeofthetransactionandtheamountofconsiderationpayabletoaRelatedParty;

• ThenatureoftheinterestoftheapplicableRelatedParty;and

• Whetherthetransactionmayinvolveanactualorapparentconflictofinterest,orembarrassmentorpotentialembarrassmentwhendisclosed.


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ThepoliciesandproceduresrelatingtotheAuditCommittee’sapprovalofRelatedPartyTransactionsarefoundintheCodes,whichareavailableatwww.cmsenergy.com/complianceandethics.

SinceJanuary1,2019,therehavebeennoRelatedPartyTransactionstoreport.

No Pledging or HedgingInaccordancewithourCodes,CMS’andConsumers’officers,employeesanddirectorsmaynotengageinpledgingorpurchasingonmarginoursecurities,“trading”ofoursecuritiesorselling“short”oursecuritiesorbuyingorsellingputsorcalls,hedgesorotherderivativesecuritiesrelatingtooursecurities,includingcompensatoryawardsofequitysecuritiesoroursecuritiesotherwiseheld,directlyorindirectly,bythosepersons.ForpurposesoftheseCodes,“trading”meansacombinationorpatternofsubstantialorcontinuousbuyingandsellingofsecuritieswiththeprimaryobjectiveofrealizingshort-termgains.Selling“short”isatechniqueinwhichinvestorsbetonastockpricefallingbysellingsecuritiestheydonotownwiththeunderstandingthattheywillbuythemback,hopefullyatalowerprice.

Management Succession PlanningTheBoardengagesinanactivesuccessionplanningprocess.TheBoardselectsaCEOandthenconsultswiththeCEOconcerningtheselectionofaseniormanagementteamandplansfortheirsuccession.ThemanagementsuccessionplanalsoincludesprovisionsforCEOsuccession.TheCompensationCommitteeregularlyreviewssuccessionplanningissuesandreportstotheBoard.TheCompensationCommitteealsoadvisestheBoardonsuccessionplanning,includingpoliciesandprinciplesforexecutiveofficerselection.CEOevaluationsareconductedannually.

CEO Pay RatioItisthephilosophyofCMSandConsumerstoprovidemarket-basedcompensationtiedtoperformance.Anemployee'scompensationisbasedonacombinationofthemarketvalueofhisorherpositionalongwithindividualexperienceandperformance.

ForthefiscalyearendedDecember31,2019,themedianoftheannualtotalcompensationofallCMSemployees(otherthanPoppe,PresidentandCEO),was$122,783;andtheannualtotalcompensationofPoppewas$8,986,702.BasedonthisinformationtheratiooftheannualtotalcompensationofthePresidentandCEOtothemedianoftheannualtotalcompensationofallCMSemployeeswas73.0to1.

SUMMARY COMPENSATION TABLE – CMS

BasePay OverTime StockAwards

Non-EquityIncentive

ChangeinPensionValue

andNonqualifiedDeferred

Compensation

AllOtherComp Total Ratio

MedianEmployee(1) $ 110,853 — — $ 830 — $ 11,100 $ 122,783 73.0:1PatriciaK.Poppe $1,250,000 — $5,381,113 $1,830,000 — $ 525,589 $8,986,702

(1) Medianemployeeoccupiesanexemptmid-levelinformationtechnologyanalystpositioninMichiganthatrequiresabachelor’sdegree.

ForthefiscalyearendedDecember31,2019,themedianoftheannualtotalcompensationofallConsumersemployees(otherthanPoppe,PresidentandCEO),was$123,939;andtheannualtotalcompensationofPoppewas$8,986,702.BasedonthisinformationtheratiooftheannualtotalcompensationofthePresidentandCEOtothemedianoftheannualtotalcompensationofallConsumersemployeeswas72.5to1.


CMS,includingConsumers Consumers Full-timeemployees 7,957 Full-timeemployees 7,504Seasonalortemporaryemployees(1) 698 Seasonalortemporaryemployees(1) 698Part-timeemployees 65 Part-timeemployees 14Total employees 8,720 Total employees 8,216AverageTenure 12.5years AverageTenure 12.9years

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SUMMARY COMPENSATION TABLE – CONSUMERS

BasePay OverTime StockAwards

Non-EquityIncentive



Compensation

AllOtherComp Total Ratio

MedianEmployee(1) $ 113,174 (2) — — $ 923 — $ 9,842 $ 123,939 72.5:1PatriciaK.Poppe $1,250,000 — $5,381,113 $1,830,000 — $ 525,589 $8,986,702

(1) MedianemployeeoccupiesanexemptseniorlevelenvironmentalanalystpositioninMichiganthatrequiresabachelor’sdegree.

(2) Basesalarycontainspremiumpayof$4,691.

IndeterminingthemedianemployeeforeachofCMSandConsumers,ourcalculationincludesemployeesasofDecember31,2018,asfollows:

(1) SeasonalortemporaryemployeesincludeinternsandEnhancedInfrastructureReplacementProgram(“EIRP”)employeesintheGasOperationsbusinesssegmentatConsumersthatwereactiveemployeesasofDecember31,2018.ThetypeofworkEIRPemployeesperformisdoneduringtheconstructionseason,andtheseemployeesaresubjecttoannuallay-offsoverthewintermonths.

AllemployeesareU.S.-basedwith96%ofouremployeepopulationinMichigan.Totalcompensationforpurposesofdeterminingthemedianemployeeisillustratedbelowbypayelement.WeidentifiedeachofCMS’andConsumers’medianemployeesusingthesecompensationmeasures,whichwereconsistentlyappliedtoallemployees.

SECexecutivecompensationdisclosurerulesallowfortheidentificationofthemedianemployeeeverythreeyearsunlesstherehasbeenachangeinitsemployeepopulationoremployeecompensationarrangementsthattheregistrantreasonablybelieveswouldresultinasignificantchangeinthepayratiodisclosure.Nosignificantchangehasoccurredin2019from2018regardingthemedianemployeesand,accordingly,weareusingthesamemedianemployeeasidentifiedwithrespecttothe2018CEOPayRatiodisclosure.

Thepayelementsthatwereincludedintheannualtotalcompensationtoidentifythemedianemployeewere:

• salaryforallfulltimeandpart-timepermanentemployees,basedonsalarylevelineffectasofDecember31,2018andhoursworkedduringtheyear;

• salaryreceivedinfiscalyear2018forseasonalortemporaryemployeesasofDecember31,2018;

• annualincentivepaymentreceivedforperformanceyear2018;

• grantdatevalueofstockawardsgrantedinfiscalyear2018;

• relocation,housingand/orautoallowancepaidinfiscalyear2018;and

• reimbursementforCorporation-paidexecutivephysicalduringfiscalyear2018.

Oncetheannualtotalcompensationwascalculatedforeachemployeeusingtheabovemeasures,theannualtotalcompensationofallemployeeswasrankedexceptforthePresidentandCEOfromlowesttohighest,andthemedianemployeewasidentified.

Themedianemployee’scompensationforfiscalyear2019wascalculatedinaccordancewiththerequirementsofItem402(c)(2)(x)ofRegulationS-Kasprescribedforinclusioninthe2019


FeesEarnedorPaid

inCashStockAwards

(1)(2)OtherCompensation

(3) TotalName(a) ($)(b) ($)(c) ($)(d) ($)(e)

JonE.Barfield 122,084 150,000 — 272,084DeborahH.Butler 113,334 150,000 — 263,334KurtL.Darrow 125,000 150,000 — 275,000StephenE.Ewing 116,250 150,000 266,250WilliamD.Harvey 146,250 150,000 — 296,250JohnG.Russell 285,000 150,000 1,000 436,000SuzanneF.Shank(4) 115,000 193,334 308,334MyrnaM.Soto 115,000 150,000 — 265,000JohnG.Sznewajs 125,000 150,000 — 275,000RonaldJ.Tanski(5) 18,334 75,000 — 93,334LauraH.Wright 130,000 150,000 — 280,000

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SummaryCompensationTableincludedinthisProxyStatement.WithrespecttotheannualtotalcompensationofthePresidentandCEO,theamountreportedinthe“Total”columnofour2019SummaryCompensationTableincludedinthisProxyStatementwasused.

Directors’ CompensationThefollowingtablecontainsnon-employeeDirectorcompensationinformationfor2019.

2019 DIRECTORS’ COMPENSATION TABLE

(1) Amountsrepresenttheaggregategrantdatefairvalueoftheannualequityawardstothenon-employeedirectors.SeeNote13,Stock-BasedCompensation,totheConsolidatedFinancialStatementsincludedinCMS’andConsumers’AnnualReportonForm10-KfortheyearendedDecember31,2019,foradiscussionoftherelevantassumptionsusedincalculatingtheaggregategrantdatefairvaluepursuanttoASC718.

(2) TheaggregatenumberofsharesofunvestedrestrictedstockoutstandingasofDecember31,2019,foreachnon-employeedirector:Barfield,Ewing,Harvey,RussellandWrightwere2,715;andTanskiwas1,259.DirectorsButler,Darrow,Shank,SotoandSznewajshavenosharesofunvestedrestrictedstockoutstandingasofDecember31,2019.TheaggregatenumberofsharesofoutstandingrestrictedstockunitsasofDecember31,2019,foreachnon-employeedirector:Butlerwas15,737;DarrowandSznewajswere12,042;Shankwas2,768;andSotowas5,705.

(3) AmountsinthiscolumnrepresentmatchinggiftcontributionsmadebytheCorporationtocharitableorganizationstowhichtheDirectormadeacontribution.TheCorporation’smatchinggiftcontributionprogramisavailabletoallCMSandConsumersemployeesandDirectorsandonlyappliestogiftstoMichiganinstitutions.

(4) ShankreceivedaproratedstockawardinJanuary2019whenshewasappointedasanewDirectorinadditiontotheannualgrantinMay2019.

(5) TanskireceivedaproratedstockawardinNovember2019whenhewasappointedasanewDirector.

Narrative to 2019 Directors’ Compensation TableNon-employeedirectorcompensationisbenchmarkedannually.DirectorswhoareCMSorConsumersemployeesdonotreceiveretainersorfeesforserviceontheBoardorasamemberofanyCommittee.Non-employeedirectorsreceiveanannualretainerfeeandrestrictedstockawardforserviceontheCMSandConsumersBoardsandadditionalannualretainerfeesforcertainCommitteepositions.DirectorsarereimbursedforexpensesincurredinattendingBoardorCommitteemeetingsandothercompanybusiness.

In2019,directorswhowerenotCMSorConsumersemployeeseachreceivedanannualcashretainerfee.Thefollowingtabledescribestheannualcashretainerfeereceivedforservicein2019,aswellasotherfeesforDirectorservices.Therearenochangestothesefeesin2020.AnnualretainerfeesarepaidbasedonthenumberofmonthsservedontheBoardineachrespectivecapacity.

YearAnnual

CashRetainerChairmanoftheBoard

PresidingDirector

ChairoftheAuditCommittee

OthermembersoftheAuditCommittee

ChairsoftheCompensation,Finance

andGovernanceCommittees

2019 $ 110,000 $ 175,000 $ 30,000 $ 20,000 $ 5,000 $ 15,000


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InMay2019,allthen-servingnon-employeedirectors,wereawardedanumberofsharesofrestrictedstockwithafairmarketvalueatthetimeofawardof$150,000.Thesesharesofrestrictedstockare100%tenure-basedandvest100%atthenextannualmeetingdate.In2020,theannualrestrictedstockawardwillhaveafairmarketvalueatthetimeoftheMay2020awardofapproximately$150,000,equaltothe2019award.Thesesharesofrestrictedstockwillbe100%tenure-basedandvestatthenextannualmeetingdate.UnderourPerformanceIncentiveStockPlan,non-employeedirectorsmaydeferreceiptoftheirannualequityawardsuntiladeferraldateselectedbythedirector.Ifadeferralelectionismadebythedirector,theequityawardssubjecttothedeferralelectionwillbegrantedasrestrictedstockunitsratherthanrestrictedstockawards.DirectorsButler,Darrow,Shank,Soto,andSznewajselectedtodeferequityin2019.

StockownershipguidelineshavebeenadoptedbytheBoardthatalignfurthertheinterestsofthedirectorswithourshareholders.DirectorsarerequiredtoholdCMScommonstockequivalentinvaluetofivetimestheirannualcashretainerbytheendofthefifthcalendaryearofbecomingadirector.Intheeventadirectorhasnotmetthestockownershipguidelinesintheprescribedtimeframe,inlieuofthedirectorreceivinghisorhermonthlycashretainer,theretainerwillbeusedtopurchaseCMScommonstockuntilsuchtimeastheguidelinehasbeenmet.Alldirectorscurrentlycomplywiththisstockownershiprequirementorarecurrentlyexpectedtocomplybytheendoftheirfifthcalendaryearofbecomingadirector.

PursuanttotheDirectors’DeferredCompensationPlan(“DCP”),adirectorwhoisnotanemployeemay,atanytimepriortoacalendaryearinwhichcashretainerfeesaretobeearned,irrevocablyelecttodeferpayment,throughwrittennotice,ofalloraportionofanyofthecashretainerfeesthatwouldotherwisebepaidtothedirector.Deferredamountswillbedistributedinalumpsumorinannualinstallmentsincash,asspecifiedinthedirector’sinitialelection.FidelityInvestments,anindependentrecordkeeper,administerstheDCP.Theparticipantdecideshowcontributionsareinvestedamongabroadarrayofmutualfundsselectedbyandprovidedbytherecordkeeper.FundsequaltotheamountsdeferredaretransferredtoFidelityInvestments.Ourpaymentobligationstothedirectorsremainanunsecuredcontractualrighttoapayment.DirectorsBarfield,Butler,Darrow,Shank,Soto,andSznewajsparticipatedintheDCPin2019.


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BENEFICIAL OWNERSHIPThefollowingtableshowsthosepersonsknowntousasofMarch3,2020tobethebeneficialownersofmorethan5%ofCMSorConsumers’votingsecurities: NumberofSharesBeneficiallyOwnedwith:

NameandAddressofBeneficialOwner

NumberofCMS

SharesBeneficiallyOwned(1)

NumberofConsumersShares

BeneficiallyOwned(2)

Percentageof

BeneficialOwnership

SoleVotingPower

SharedVotingPower

SoleInvestmentPower

SharedInvestmentPower

The Vanguard Group 100VanguardBlvd.Malvern,PA19355(Schedule13G/AfiledonFebruary11,2020) 36,435,969 N/A 12.83 493,704 164,377 35,876,087 559,882BlackRock, Inc. 55East52ndStreetNewYork,NY10055(Schedule13G/AfiledonFebruary5,2020) 25,850,716 N/A 9.1 22,759,816 None 25,850,716 NoneJP Morgan Chase & Co. 383MadisonAve.NewYork,NY10179(Schedule13G/AfiledonJanuary10,2020) 19,870,425 N/A 7.0 18,711,923 67,719 19,635,594 227,106State Street Corporation OneLincolnStreet,Boston,MA02111(Schedule13GfiledonFebruary14,2020) 15,620,017 N/A 5.5 None 13,515,476 None 15,589,843Capital World Investors 333SouthHopeStreetLosAngeles,CA90071(Schedule13G/AfiledonFebruary14,2020) 15,060,150 N/A 5.3 15,056,756 None 15,060,150 NoneCMS Energy Corporation OneEnergyPlazaJackson,MI49201 N/A 84,108,789 99.6 84,108,789 None 84,108,789 None

(1) BasedsolelyuponinformationcontainedinSchedules13Gand13G/AfiledbyeachbeneficialownerwiththeSECpursuanttoRule13d-1(b)oftheExchangeActregardingtheirrespectiveholdingsofCMScommonstockasofDecember31,2019.

(2) CMSistheholderofallConsumers’outstandingcommonstockconsistingof84,108,789shares.NeitherCMSnoranyofitssubsidiariesholdanysharesofConsumers’preferredstock.

EachoftheseSchedule13Gand13G/Afilingsindicatesthattheseshareswereacquiredinafiduciarycapacityintheordinarycourseofbusinessforinvestmentpurposes.Totheknowledgeofourmanagement,nootherpersonorentitycurrentlyownsbeneficiallymorethan5%ofanyclassofCMSorConsumersoutstandingvotingsecurities.TheSchedules13Gand13G/Afiledbytheholdersidentifiedabovedonotidentifyanyshareswithrespecttowhichthereisarighttoacquirebeneficialownership.Exceptasotherwisenoted,thepersonsnamedinthetableabovehavesolevotingandinvestmentpowerwithrespecttoallsharesshownasbeneficiallyownedbythem.


NameNumberofShares

BeneficiallyOwned(1)JonE.Barfield 16,763DeborahH.Butler 17,157KurtL.Darrow 22,074StephenE.Ewing 45,514WilliamD.Harvey 35,258JohnG.Russell 184,511SuzanneF.Shank 3,757MyrnaM.Soto 18,332JohnG.Sznewajs 15,234RonaldJ.Tanski 1,368LauraH.Wright 27,527PatriciaK.Poppe 465,186RejjiP.Hayes 109,209CatherineM.Reynolds 72,974Jean-FrancoisBrossoit 60,921BrianF.Rich 72,605GarrickJ.Rochow 109,438AllDirectorsandexecutiveofficers(2)(3) 1,446,615

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ThefollowingtableshowsthebeneficialownershipofCMScommonstockasofMarch3,2020bythedirectorsandnamedexecutiveofficersofbothCMSandConsumersandbyalldirectorsandexecutiveofficersasagroup:

(1) Restrictedstockawardsareincludedinthenumberofsharesshownabove.Poppe,Hayes,Reynolds,Brossoit,RichandRochowaswellasallotherexecutiveofficersofCMSandConsumersasagroup,held352,389,106,072,19,639,43,369,44,126and57,443sharesofrestrictedstock,respectively.Thenumberofsharesshownaboveincludesthesharesthateachpersonorgroupofpersonsnamedinthetablehastherighttoacquirewithin60daysofMarch3,2020,includingrestrictedstockunits,andnosharesarepledgedassecurity.ExceptforBarfield,whosespouseowns500sharesofCMScommonstock,thepersonsnamedinthetableabovehavesolevotingandinvestmentpowerwithrespecttoallsharesshownasbeneficiallyownedbythem.

(2) ThisgroupincludesthedirectorsofCMSandConsumers,andtheexecutiveofficersofbothCMSandConsumers.AsofMarch3,2020,thedirectorsandexecutiveofficersofCMSandConsumerscollectivelyownedapproximately1.0%oftheoutstandingsharesofCMScommonstock.Eachofthepersonsnamedinthetableaboveindividuallyownslessthan1.0%oftheoutstandingsharesofCMScommonstock.

(3) NoneoftheCMSandConsumersdirectorsorexecutiveofficersownanyclassofConsumers’votingsecurities.


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COMPENSATION DISCUSSION AND ANALYSISInthissection,wedescribeanddiscussourexecutivecompensationprogram,includingitsobjectivesandelements,aswellasdeterminationsmadebytheCompensationCommitteeregardingthecompensationoftheCEO,CFO,thethreeothermosthighlycompensatedexecutiveofficersofeachofCMSandConsumers,andaformerofficerwhosecompensationlevelsthroughretirementplacethemasoneofthemosthighlycompensatedexecutiveofficers,whowecollectivelyrefertoasthe“namedexecutiveofficers”(“NEOs”).AsofDecember31,2019,theNEOsforeachofCMSandConsumersarePatriciaPoppe(PresidentandCEO),RejjiHayes(ExecutiveVicePresidentandCFO),CatherineReynolds(formerSeniorVicePresidentandGeneralCounsel),Jean-FrancoisBrossoit(SeniorVicePresident),BrianRich(SeniorVicePresident)andGarrickRochow(SeniorVicePresident).

Executive Summary

2019 Performance HighlightsIn2019,wecontinuedtodeliverstrongfinancialperformancemarking17yearsofmeetingouradjustedearningsguidance.Webelievethatourhighlightsreflectonasuccessfulyearofworldclassperformancedeliveringhometownservicewithachievementsinourtriplebottomlineofpeople,planetandprofit.

PEOPLE–servingourcustomers,communitiesandco-workers.

• Safety Policy: WepublishedourSafetypolicy,whichhasbeeninplaceformanyyears.CMSiscommittedtothesafetyandhealthofemployees,customersandthepublic.Webelievenooperationalpriorityorservicecommitmentcaneverjustifyendangeringthelife,safetyorhealthofanyone.

• Customers Focus:○ Recognizedbyanindependentnationalsurveyamongbusinesscustomersasa“MostTrustedBrand,”as

oneofthetop15utilitiesinthenation.○ Ranked#1inJ.D.PowerMidwestLargeResidentialGasStudyforcustomersatisfaction.○ ReceivedthelowestnumberofcustomercomplaintsintheCorporation’srecords.

• Co-workers:○ Firstquartileemployeeengagement○ Ranked2ndinthestateofMichigan(40thof113companiesglobally)intheMilitaryTimesBestforVets:

Employers2019.○ Namedthe#1MichiganCompanyforDiversity2019byForbes®Magazine.○ RankedintheTop50BestEmployersforDiversity2020byForbes®Magazine.○ WontheAssociationforTalentDevelopment2019BESTAward(#3intheworld).○ Receivedthe2019Women’sResourceNetwork’sPillarAward.○ ReceivedtheSocietyofWomenEngineers2019SustainingBenefactorAward.○ ReceivedtheExcellenceinWomen’sDevelopmentAwardatthe12thAnnualEnergeticWomenConference.

• Human Rights Policy: Webelieveinthedignity,humanrightsandpersonalaspirationsofallpeople.In2019,wepublishedourHumanRightspolicyinspiredbyapplicableinternationalhumanrightsprinciples.Allemployeesareexpectedtobestrongethicalcommunitypartners–formingpositiverelationshipswhereverwedobusiness.


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PLANET–goingaboveandbeyondenvironmentallegislationtoleaveourplanetbetterthanwefoundit.

• Clean Energy:○ In2019,Consumers’IntegratedResourcePlan,wasapproved,whichincludesplansformorethan90%

carbonemissionsreductionby2040andprovidesastrategicroadmapforreachingConsumers’cleanenergygoalsby2040.

○ PublishedfirstMethaneReductionPlan,whichexplainsConsumers’plansforachievingnetzeromethaneemissionsfromournaturalgasdeliverysystemby2030.

○ 76mega-wattswindfarmwentintooperationsinthethumbregionofMichigan.○ Lefttheplanetbetterthanwefounditby:

○ Savingover400milliongallonsofwater,○ Reducinglandfillwasteby10%,and○ Restoringover2,200acresofland.

• Energy Efficiency:ReceivedanENERGYSTAR®awardfromtheU.S.EnvironmentalProtectionAgencyfortheseventhtimeineightyears.

PROFIT–deliveringconsistent,industryleadingfinancialperformance.

• Earnings per share growth: AdjustedEPS*growthof7%overone,threeandfiveyears.

• Operating Cash Flow: CMSAdjustedOperatingCashFlow*(“OCF”)of$1,790millionexceededtheannualbudgetby$140million.

• Dividends: Commonstockdividendincreasedby7.0%to$1.53pershareonanannualizedbasis–the13thcommonstockdividendincreaseinasmanyyears.

• Total Shareholder Return: CMSTotalShareholderReturn(“TSR”)was30%andmarkedthetenthyearwithperformanceatorabovethemedianofourPerformancePeerGroup,asdescribedbelow.

*Areconciliationofallnon-GAAPmeasuresfoundinthisProxyStatementisinAppendixA.

(1) ThecompaniesincludedinthePerformancePeerGrouparedetailedintheObjectives of Our Executive Compensation Program sectionof

thisCompensationDiscussionandAnalysis.

Basedontheseachievements,our2019AnnualIncentivePlanpaidoutat122%oftargetandourlong-termincentive(“LTI”)program(performanceperiodendedDecember31,2019)paidoutat155%oftargetfortheperformance-basedportion.TheLTIperformance-basedpayout


WeHave…

• ClawbacksinplacefortheannualincentiveandLTIawards;

• StockownershipguidelinesforNEOsanddirectors,whichexcludeunvestedperformance-basedrestrictedstockawardswhendeterminingcompliance;

• Change-in-controlagreementsthatrequireadouble-triggerfortheacceleratedvestingofequityawards;

• ApolicythatprohibitshedgingandpledgingoftheCorporation’ssecuritiesbyemployeesanddirectors;

• Annualreviewsofourcompensationandperformancepeergroups;and

• RegularbriefingsfromtheCompensationCommittee’sindependentcompensationconsultantregardingkeytrendsandlegislativeandregulatoryupdates.

WeDon’tHave…

• Excessiveperquisites.Noplanes,cars,clubs,securityorfinancialplanning.Theprincipalperquisiteprovidedtoourexecutivesin2019wasanannualmandatoryphysicalexaminationforeachNEO;

• Dividendspaidonunvestedperformance-basedrestrictedstockawards.Inlieuofdividends,recipientsreceiveadditionalsharesofrestrictedstockthatvestbasedonthesameperformancemeasuresapplicabletotheunderlyingrestrictedstock;

• Employmentagreements.Ourexecutiveagreementsarelimitedtoseparationandchange-in-controlagreements.BasesalaryandannualincentiveseparationamountsdonotexceedthreetimestheNEO’sbasesalaryandannualincentiveamount,withanaverageoftwotimes;and

• Taxgross-ups.Noneoftheseparationorchange-in-controlagreementscontaintaxgross-ups.

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wasbasedonawardsgrantedin2017,withthepayoutofsuchawardsdeterminedbasedonCMS’relativeTSRandLTIEPS(seeThe Elements of Our Executive Compensation Program, Equity Compensation, Plan Performance Factorbelow)performancefromJanuary1,2017toDecember31,2019.

Best PracticesWeannuallyreviewallelementsoftheCorporation’sexecutivecompensationprogramand,inadditiontodesigningaprogramtocomplywithrequiredrules,weadoptcurrentbestpracticeswhereappropriateforourbusinessandshareholders.Asaresult,

Program DesignWehavedesignedourexecutivecompensationelementstobebalancedandsimple,placingemphasisonconsistent,sustainableandsuperiorabsoluteandrelativeperformance.Thefollowingelementsdeliverourexecutivetotaldirectcompensation:basesalary;annualincentive;andLTI.

BASE SALARY. Basesalaryistargetedtoapproximatethemedianofapeergroupmadeupofcompaniesofsimilarbusinessprofileandsize,andtoreflectindividualperformanceandinternalconsiderations.

ANNUAL INCENTIVE.AnnualincentiveawardsarebasedontheachievementofAnnualIncentiveEPS(70%ofannualincentive)andAnnualIncentiveOCF(30%ofannualincentive)goals.Formoreinformation,seeThe Elements of OurExecutive Compensation Program, Cash Compensation, Plan Performance Factorbelow.

The2019AnnualIncentiveEPStargetof$2.47,represented6%growthoverour2018actualadjustedEPSof$2.33.WehavedeliveredadjustedEPSgrowtheveryyearformorethan10years.


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TheAnnualIncentiveOCFtargetfor2019was$1,700millionandwaslargelybasedontheBoard-approvedbudgetfortheyear.

WepayanannualincentiveonlyiftheAnnualIncentiveEPSorAnnualIncentiveOCFmeetorexceedthethresholdlevelsapprovedbytheCompensationCommitteeinJanuaryofeachyear.AnnualIncentiveEPSandAnnualIncentiveOCFareusedtodeterminetheannualincentivepayoutbecausetheCompensationCommitteebelievesthatthesetwometricsarethebuildingblocksforgrowingthevalueoftheCorporationandaregoodindicatorsofhowwellweareexecutingourcustomerfocusedstrategy.WeplacemoreweightonAnnualIncentiveEPStoreflecttheCorporation’sandshareholders’focusonEPSgrowth.Thepayoutmaybeincreasedorreducedby10%basedontheresultsoftheoperatingmetricsundertheConsumers’AnnualEmployeeIncentiveCompensationPlan(“ConsumersIncentivePlan”).Webelievethatthisalignmentwithoperationalperformanceandthebroaderemployeepopulationisanimportantaspectofourprogramdesign.

LONG TERM INCENTIVE. TheLTIprogramconsistsofperformance-basedrestrictedstock(75%oftotalLTI)andtenure-basedrestrictedstock(25%oftotaltargetLTI).

The2019performance-basedportioniseligibletovestafterthreeyearsdependentuponourTSRperformanceandLTIEPSgrowth(eachweightedequally)relativetothePerformancePeerGroup.The2019LTIprogramisdistinctfromtheannualincentiveprograminthatitfocusesonrelativemulti-yearperformanceratherthanabsoluteone-yearperformance.Thetenure-basedportionvestsonthethirdanniversaryoftheawarddate.

Our2019LTIprogramisbasedonrelativeTSRperformanceandrelativeLTIEPSgrowthbecausetheCompensationCommitteebelievesthatthesemeasuresofferahead-to-headcomparisonofhowwellourmanagementteamperformedcomparedtoothermanagementteamsinourindustryandfurthermotivatemanagementtoincreaseshareholderandcustomervaluethroughstockpriceandearningsgrowth.

Wetieaportionofequitycompensationtocontinuedemployment.Thetenure-basedrestrictedstockhelpsbuildexecutiveshareownershipandalignmentwithshareholderswhileservingasanadditionalretentionmechanismthatisnotsubjecttotheyear-to-yearfluctuationsofanyperformancemeasurement,althoughthevalueissubjecttotheperformanceofourstockprice.

In2019,theperformance-basedrestrictedstockawardsgrantedin2017completedthethree-yearperformanceperiod,withthepost-performanceperiodtenure-basedvestingsatisfiedinearly2020.The2017performance-basedrestrictedstockawardsvestedbasedupontherelativeTSRandLTIEPSgrowthperformanceduringtheperformanceperiod(January1,2017toDecember31,2019).OurTSRforthethree-yearperformanceperiod(January1,2017toDecember31,2019)was61%whilethemedianTSRforourPerformancePeerGroupwas44%,placingCMS,bycomparison,inthe72ndpercentile.OurLTIEPSGrowthforthethree-yearperformanceperiod(January1,2017toDecember31,2019)relativetothePerformancePeerGroupisnotexpectedtobeknownuntilafterMarch20,2020.

ADVISORY VOTE.TheCMSadvisoryvotetoapproveexecutivecompensation,asdescribedinthe2019CMSProxyStatement,resultedinahighlevelofshareholdersupportwithapproximately98%ofvotescastinfavoroftheproposal.Wecontinuedtoemploythesameperformance-orientedprogramdesignduring2019.

TheremainderofthisCompensationDiscussionandAnalysisoffersadetailedexplanationoftheNEOcompensationprogram.

Objectives of Our Executive Compensation ProgramTheCompensationCommitteeisresponsibleforapprovingthecompensationprogramfortheNEOs.TheCompensationCommitteeactspursuanttoitsCharterthatisannuallyreviewedbytheBoardandisavailableonourwebsite.


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TheNEOcompensationprogramisorganizedaroundfourprinciples:

• AlignWithIncreasingShareholderandCustomerValue;

• EnableUstoCompeteforandSecureTopExecutiveTalent;

• RewardMeasurableResults;and

• BeFairandCompetitive.

Align With Increasing Shareholder and Customer ValueWebelievethatasubstantialportionoftotalcompensationshouldbedeliveredintheformofat-riskequityinordertofurtheraligntheinterestsoftheNEOswiththeinterestsofourshareholdersandcustomers.EquitycompensationisprovidedthroughthePerformanceIncentiveStockPlan(“StockPlan”).In2019,awardsweresubjecttotheachievementofthree-yearrelativeTSRperformanceandrelativeLTIEPSgrowthgoals,eachweightedequally,overathree-yearperformanceperiodfromJanuary1,2019toDecember31,2021.

Assumingtargetperformance,thefollowingchartsareanillustrationofthepaymixfortheCEOandtheaveragepaymixfortheotherNEOsasofDecember31,2019.

(1) IncludesReynolds’annualizedcompensationforcomparability.

NEOspaymixfor2019wastargetedatmedianlevelsoftheCompensationPeerGroup.


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Enable Us to Compete for and Secure Top Executive TalentShareholdersandcustomersarebestservedwhenwecanattract,retainandmotivatetalentedexecutives.WecreateacompensationpackageforNEOsthatdeliverstotalcompensationgenerallytargetedtoapproximatethe50thpercentileofthemarket.TheCompensationPeerGroupconsistsofenergycompaniescomparableinbusinessfocusandsizetoCMSwithwhichwemightcompeteforexecutivetalent.TheCommitteealsoreviewssize-adjustedpublicutilitysectorandgeneralindustrydata,wherecomparablepositionsareidentifiable.

Annually,theCompensationCommitteeengagesaconsultanttoprovideadviceandinformationregardingcompensationpracticesoftheCompensationPeerGroupaswellasadditionalinformationfrompublishedsurveysofcompensationinthepublicutilitysectorandgeneralindustry.

DuringtheCompensationCommittee’sreviewoftheCEO’sandotherofficers’compensationlevels,theCompensationCommitteeconsideredtheadviceandinformationreceivedfromPayGovernanceLLC(“PayGovernance”),theCompensationCommittee’sindependentcompensationconsultant;however,theCompensationCommitteewasultimatelyresponsiblefordeterminingtheformandamountofexecutivecompensation.DuringthetimethatPayGovernancehasbeenengagedasthecompensationconsultant,PayGovernancehasnotperformedanyservicesonbehalfofmanagementorotherwisebeenconsideredtohaveaconflictofinterestregardingCMSorConsumers.TheCompensationCommitteemustdirectandapproveanyworkPayGovernancemayundertakeonbehalfofmanagement.

Reward Measurable ResultsBasesalaryisreviewedannuallyandmaybeadjustedbasedonavarietyoffactorsincludingeachNEO’soverallperformance(bothindividualandfunctional)andtenure.TheCEOrecommendsannualbasesalaryadjustmentsandannualrestrictedstockawardsforallofficers,otherthantheCEO.Whenmakingadjustments,theCompensationCommitteeconsiderstheCEO’srecommendations,alongwithCompensationPeerGroupdata,internalequity,tenure,andothermarketdatafromsurveysprovidedbytheindependentcompensationconsultant.CEObasesalaryisdeterminedsolelybytheCompensationCommitteeandconsiderationsincludeCompensationPeerGroupdata,othermarketdataandoverallCorporationandCEOperformance.

Annualincentives,theotherformofcashcompensation,provideforawardopportunitiestoeachNEOundertheAnnualIncentivePlan.TheAnnualIncentivePlanpaysincentivesonthebasisofperformanceduringaone-yearperiod.PerformanceobjectivesundertheAnnualIncentivePlanarefinalizedatthestartofeachyearthroughaniterativeprocess.Management,includingexecutiveofficers,developspreliminaryrecommendationsfortheCompensationCommittee’sreviewandapproval.For2019,theAnnualIncentivePlantargetedawardsvariedfrom65%to120%ofeachNEO’sbasesalary,butpayoutcouldrangefromzeroto200%oftargetleveldependingonperformanceagainstspecificcorporateperformancegoals.

For2019,75%oftheequitycompensationgrantedtotheNEOswasperformance-based,designedtorewardmeasurableresults.VestingofsuchawardsissubjecttotheachievementofrelativeTSRperformanceandrelativeLTIEPSgrowthgoals,weightedequally,overathree-yearperformanceperiodofJanuary1,2019toDecember31,2021.

Thetablebelowillustratesthemannerinwhich:(a)theoverallmixoftotaldirectcompensationwasallocatedbetweenvariableat-riskandfixedelementsforeachNEO;(b)variableat-riskcompensationwasallocatedbetweenannualandlong-termincentives;and(c)totaldirectcompensationwasallocatedbetweencashandequity.Variableat-riskpayisgeneratedfromshareholderfundsandisnotincludedintheratesofConsumers’electricandgascustomers.


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2019 TOTAL DIRECT COMPENSATION MIX TABLE (1)

PercentofTotalDirectCompensationThatis:

PercentofVariableat-riskTotalDirectCompensationThatis:

PercentofTotalDirectCompensationThatis:

Variableat-risk(2) Fixed(3) Annual(4) Long-Term(5) Cash-Based(6) Equity-Based(7)PatriciaK.Poppe 84% 16% 21% 79% 34% 66%RejjiP.Hayes 75% 25% 25% 75% 44% 56%CatherineM.Reynolds(8) 69% 31% 29% 71% 50% 50%Jean-FrancoisBrossoit 68% 32% 30% 70% 53% 47%BrianF.Rich 68% 32% 31% 69% 53% 47%GarrickJ.Rochow 69% 31% 31% 69% 53% 47%

(1) Forpurposesofthistable,(i)totaldirectcompensationincludesthesumofactualbasesalary,AnnualIncentivePlantargetamountandthemarketvaluedeterminedonthedateofgrant(assumingperformance-basedrestrictedstockattargetandexcludingdividendequivalents)oftheStockPlanequityawardsand(ii)AnnualIncentivePlanandStockPlanequityawardvaluesareeachshownattarget.

(2) AmountsinthiscolumnrepresentAnnualIncentivePlanplusStockPlanequityawardvalue(performanceandtenure)dividedbytotaldirectcompensation.

(3) Amountsinthiscolumnrepresentbasesalarydividedbytotaldirectcompensation.

(4) AmountsinthiscolumnrepresentAnnualIncentivePlandividedbyAnnualIncentivePlanplusStockPlanequityawardvalue.

(5) AmountsinthiscolumnrepresentStockPlanequityawardvaluedividedbyAnnualIncentivePlanplusStockPlanequityawardvalue.

(6) AmountsinthiscolumnrepresentbasesalaryplusAnnualIncentivePlandividedbytotaldirectcompensation.

(7) AmountsinthiscolumnrepresentStockPlanequityawardvaluedividedbytotaldirectcompensation.

(8) Paymixreflectscompensationbasedonafull-yearasSeniorVicePresident.CatherineReynoldsretiredeffectiveJuly1,2019.

Be Fair and CompetitiveWestrivetocreateacompensationprogramthatisfairandcompetitive,bothinternallyandexternally.ThisisaccomplishedbyevaluatingeachNEO’sindividualperformanceandbycomparingtheNEOs’compensationto:

• officersoftheCompensationPeerGroup(aswellasothermarketdataasdescribedabove),asameanstomeasureexternalfairness;and

• othersenioremployeesofCMS,asameanstoassessinternalfairness.

USE OF TALLY SHEETS.Atleastannually,theCompensationCommitteereviewstallysheetsforeachoftheNEOs.Thesetallysheetsreflectallcomponentsofcompensation,includingbasesalary,annualincentivesandLTIcompensation,retirementbenefits,deferredcompensationbenefits,deathbenefits,andbenefitsorpaymentsthatwouldbepayableinconnectionwithaterminationofemploymentorchange-in-control.TallysheetsareprovidedtotheCompensationCommitteetoshowhowvariouscompensationandbenefitamountsareinterrelatedandhowachangeinonecomponentofcompensationimpactsothercomponentsandtoenabletheCompensationCommitteetoquantifyamountspayableuponvariousterminationscenarios.

TheoverallpurposeofthesetallysheetsistoconsolidatealloftheelementsofactualandpotentialfuturecompensationoftheNEOs,aswellasinformationaboutwealthaccumulation.Usingtallysheets,ananalysiscanbemadeofboththeindividualelementsofcompensation(includingthecompensationmix)andtheaggregatetotalamountofactualandprojectedcompensation.Tallysheetinformationisusedinvariousaspectsoftheanalysisandcompensationdecision-makingprocessincludingconsiderationofourmanagementteam’sinternalpayequity.


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The Elements of Our Executive Compensation ProgramThissectiondescribesthevariouselementsofourcompensationprogramforNEOs,togetherwithadiscussionofvariousmattersrelatingtothoseitems,includingwhywechosetoincludetheitemsinthecompensationprogram.

Cash CompensationCashcompensationispaidintheformofbasesalaryandannualincentive.Our2019compensationprogramforNEOswasdesignedsothatthepercentageoftargetcashcompensationfortheNEOsiscomparabletothemedianoftheCompensationPeerGroup.Thatstrategyresultedincash-basedcompensation(asapercentageoftotalcompensation)representingapproximately34%fortheCEOand44%to53%fortheotherNEOs.Thecomponentsmakingupthecashportionoftotalcompensationaredescribedinmoredetailbelow.

BASE SALARY. BasesalaryisincludedintheNEO’sannualcompensationpackagebecausewebelieveitisappropriatethatsomeportionofNEOcompensationbeprovidedinaformthatisfixedandliquid.BasesalaryisalsouniversallyofferedbytheCompensationPeerGroup.EachJanuary,theCompensationCommitteedeterminesthebasesalaryforeachthen-servingNEO.Inaddition,basesalariesmaybeadjustedduringtheyeartoreflectchangesinjobresponsibilitiesorpromotions.Inthecaseofnewhires,basesalariesaredeterminedbasedonmarketdataandinternalequity.Changesinbasesalaryyear-over-yeararedependentoncomparisontomarketdata,pastperformanceandexpectedfuturecontributionsofeachindividual.TheannualincreasesinbasesalariesforNEOsin2019wereasfollows: 2018BaseSalary(1) 2019BaseSalary(1) PercentageIncrease(2)PatriciaK.Poppe $ 1,200,000 $ 1,250,000 4.2%RejjiP.Hayes $ 610,000 $ 620,000 1.6%CatherineM.Reynolds $ 618,000 $ 309,000 0%Jean-FrancoisBrossoit $ 430,000 $ 455,000 5.8%BrianF.Rich $ 460,000 $ 470,000 2.2%GarrickJ.Rochow $ 525,000 $ 540,000 2.9%

(1) Representsannualbasesalarylevel,asineffectonDecember31stofeachyear,orinthecaseofReynolds’2019basesalarythroughherretirementdate.

(2) Increaseinpaywasmadeinordertobetteraligncompensationwithmarketdata.

ANNUAL INCENTIVE. Weuseperformance-basedcashincentivesasanelementofcompensationbecausetheyenableustoprovideanincentivetotheNEOstoaccomplishspecificperformanceprioritiesforCMSandprovideadditionalcashcompensationonlyifperformancegoalsapprovedbytheCompensationCommitteeareachieved.Generally,thethreshold,targetandmaximumperformancegoalsaresetsothatthedifficultyinachievingapayoutisconsistentfromyeartoyear.For2019,theAnnualIncentivePlanwasbasedonoursuccessinmeetingestablishedearningspershareandoperatingcashflowgoalsdescribedfurtherbelow.Theperformancegoalsaresetatlevelsreflectingourbudgetedperformanceandtargetedgrowthandarebasedonhistoricalandforecastedfinancialperformance,andanalysisofpeerperformancegoalguidelines.

TheAnnualIncentivePlanallowstheCompensationCommitteetoexercise“negativediscretion”toreduceoreliminatepayoutsbutdoesnotallowdiscretiontoincreasepayouts.

IncentivepayoutrangesundertheAnnualIncentivePlanwereapprovedinJanuary2019bytheCompensationCommittee.Indeterminingthepayoutrangesofincentives,thefollowingfactorswereconsidered:

• thethreshold,targetandmaximumincentivelevelandincentivespaidinrecentyears;

• therelativeimportance,inanygivenyear,ofeachperformancegoalestablishedpursuanttotheAnnualIncentivePlan;and


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• theadviceofthecompensationconsultantastocompensationpracticesatothercompaniesintheCompensationPeerGroupandwithintheutilityindustry.

PaymentsundertheAnnualIncentivePlancanrange,onthebasisofperformance,from15%(threshold)to200%(maximum)ofthetargetincentive.SubjecttotheCompensationCommittee’suseofnegativediscretion,for2019aminimumpayoutwouldbeearnedifeitherathresholdAnnualIncentiveEPSperformancegoalof$0.10belowtargetorathresholdAnnualIncentiveOCFperformancegoalof$100millionlessthantargetwereachievedandtherewouldbeamaximumpayoutifAnnualIncentiveEPSperformanceof$0.16morethantargetisachievedandAnnualIncentiveOCFperformanceof$200millionmorethantargetisachieved.

ANNUAL AWARD FORMULA.Annualawardsforeacheligibleofficerarebaseduponatargetawardpercentageoftheofficer’sbasesalaryfortheperformanceyearandarecalculatedandmadeasfollows:

IndividualAward=BaseSalaryXTargetAwardPercentageXPlanPerformanceFactorXConsumersIncentivePlanmodifier.

TheTargetAwardPercentagesforofficersaredeterminedannuallybytheCompensationCommitteeasdiscussedabove.TargetAwardPercentagesofbasesalaryforNEOsin2019wereasfollows:

PatriciaK.Poppe(1) 120%RejjiP.Hayes(1) 75%CatherineM.Reynolds(2) 65%Jean-FrancoisBrossoit 65%BrianR.Rich 65%GarrickJ.Rochow(1) 70%

(1) Increaseinannualincentivetargetwasmadeinordertobetteraligncompensationwithmarketdata.

(2) AnnualincentiveopportunitywasproratedbasedonReynolds’2019basesalarythroughherretirementdate.

PLAN PERFORMANCE FACTOR.WerefertoAnnualIncentiveEPSandAnnualIncentiveOCFperformanceundertheAnnualIncentivePlanasthe“PlanPerformanceFactor.”

For2019,AnnualIncentiveEPSperformanceconstituted70%ofthePlanPerformanceFactorandAnnualIncentiveOCFperformanceconstitutedtheremaining30%ofthePlanPerformanceFactor.TheCompensationCommitteebelievesthattheallocationbetweenearningspershareandoperatingcashflowperformancealignsourperformanceobjectiveswithourPeerGroupandourutility-focusedstrategy.TheAnnualIncentiveOCFandAnnualIncentiveEPSaredeemedbytheCompensationCommitteetobekeymeasuresofCMS’presentfinancialperformanceandareusedtomeasureandassessperformance.


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Theannualawardwouldbereducedby10%ifnoawardwereearnedundertheoperationalmetricsoftheConsumersIncentivePlanandtheawardwouldbeincreasedby10%(butinnoeventshalltheawardexceedthemaximumofthetargetannualincentive)ifthemaximumpayoutwereachievedundertheoperationalmetricsoftheConsumersIncentivePlan(potentialadjustmentreferredtoas“ConsumersIncentivePlanmodifier”).Thispotentialadjustmentisdesignedtoprovidealinkageofexecutivecompensationwithourperformancegoalsrelatedtosafety,reliabilityandcustomervalue.Nosuchadjustmentstothe2019AnnualIncentivePlanweremadeastheConsumersIncentivePlanachievedsixofthenineoperationalgoals,whichdidnotresultinanyadjustmentinthepayout.Seethetablebelowforalistingoftheoperationalgoals.

OPERATINGGOALS PERFORMANCEMEASURECustomerExperienceIndex(CXi) • ForresterIndexGenerationCustomerValue • FleetavailabilityatleastcostoptionandwithintargetlimitsEmployeeSafety • IncidentsorRecordableIncidentRating(musthavenofatalitiesfor

goalachievement)EliminateVintageServices • ServiceLinesReplacedDistributionReliability • CustomerOutageMinutesmeasuredbySystemAverage

InterruptionDurationIndexCyberSafety • PhishingclickrateCustomerOn-TimeDelivery • OrderscompletedwithintargetwindowServiceOn-TimeDelivery • ScheduleadherenceforWorkOrders

• VolumeGasFlowDeliverability • Unitavailabilityundergascontrolplan

UndertheAnnualIncentivePlan,CMSAdjustedOCF(“AnnualIncentiveOCF”)isdeterminedinaccordancewithGenerallyAcceptedAccountingPrinciples(“GAAP”),withadjustmentstoexcludethefollowing:

• 2017FederalTaxReformdeferredtaxrefunds;

• changesinpowersupplycostrecoveryfrombudget(disallowancesexcluded);

• changesinpensioncontributionfromthoseusedinthebudget;

• gas-pricechanges(favorableorunfavorable)relatedtogascostrecoveryinJanuaryandFebruaryofthefollowingperformanceyear;and

• changesinaccountingprinciplesresultingfromneworrevisedaccountingstandardsnotincludedinthebudget.

UndertheAnnualIncentivePlan,CMSAdjusted(non-GAAP)EarningsPerShare(“AnnualIncentiveEPS”)isdeterminedinaccordancewithGAAP,adjustedtoexcludethefollowing,ifapplicable:

• gainsorlossesonassetsaleswhichhavebeenexcludedfromadjustedEPSoraregreaterthan2%ofadjustedEPS;

• changesinaccountingprinciplesresultingfromneworrevisedaccountingstandardsnotincludedinthebudget;

• largerestructuringandseveranceexpensesgreaterthan$5million;

• legalandsettlementcostsorgainsrelatedtopreviouslysoldassets;

• regulatoryrecoveryforprioryearchanges;and

• unrealizedgainsorlosses,recognizedinnetincome,frommark-to-marketadjustmentsrelatedtoCMSEnterprises’interestexpense.

Theseadjustmentsrelatetounusual,nonrecurringorone-timeeventsaffectingCMSoritsfinancialstatements.


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PLAN PERFORMANCE RESULTS.ThefollowingisthepayouttablefortheAnnualIncentivePlanfor2019. PayoutRange Target Actual(GAAP)Results AnnualIncentiveResults PayoutAchievement(%)AnnualIncentiveEPS $2.37-$2.63 $2.47 $2.47 $2.49 127%AnnualIncentiveOCF($in

Millions) $1,550-$1,900 $1,700 $1,790 $1,720 110%TotalPayout(weighted) — — — — 122%

2019AnnualIncentiveEPSwas$2.49whichexceededthetargetof$2.47,resultinginachievementofa127%payoutforthismetric.AnnualIncentiveOCFwas$1,720million,whichexceededthetargetof$1,700million,resultinginachievementofa110%payoutforthismetric.

Equity CompensationWehavegenerallyfollowedapracticeofmakingallequityawardstoourofficersonasingledateeachyear.Wedonothaveanyprogram,planorpracticetotimeannualequityawardstoourexecutivesincoordinationwiththereleaseofmaterialnon-publicinformation.In2019,annualequityawardsweremadetotheNEOsinJanuaryandareplannedtobemadeinJanuaryonanon-goingbasis.ThisenablestheCompensationCommitteetoreviewtotalcompensationholisticallyatonetimeandadjustthelevelsofvariouscompensationelementsandcompensationmixasnecessaryforeachindividual.

STOCK PLAN.Aspreviouslyindicated,weprovideasubstantialportionofNEOcompensationintheformofequityawardsbecausewebelievethatsuchawardsservetoaligntheinterestsofNEOswithourshareholdersandcustomers.EquityawardstotheNEOsaremadepursuanttoourStockPlan,whichwasapprovedbyshareholdersinMay2014.TheStockPlanpermitsawardsintheformofstockoptions,incentiveoptions,stockappreciationrights,restrictedstock,restrictedstockunits,phantomsharesandperformanceunits.Theminimumvestingperiodunderthestockplanis36monthsforrestrictedstock,stockoptions,andstockappreciationrights.Nodividendsarepaidonunvestedperformance-basedstockawards.Inlieuofdividends,recipientsreceiveadditionalsharesofrestrictedstockthatvestbasedonthesameperformancemeasuresapplicabletotheunderlyingrestrictedstock.

AWARD OF RESTRICTED STOCK.Atthepresenttime,webelievethatperformance-basedrestrictedstock(alsoknownasperformanceshares)isaneffectiveformofequitycompensationbecauseofthealignmentitisintendedtocreatewithshareholders.Afterthevesting,thereisnoholdingperiodrequirementaslongasspecificstockownershipguidelineshavebeenmetbytheNEO,seeCorporate Governance as it Relates to Executive Compensation, Stock Ownership Guidelines,below.TheStockPlanalsocontainsaclawbackprovision,seeCorporate Governance as it Relates to ExecutiveCompensation, Clawback Provisions, below.

Three-quartersoftherestrictedstockawardshavebeendeliveredasperformance-basedandone-quarterastenure-basedinordertolinkasignificantportionofeachNEO’scompensationtothelong-termperformanceoftheCorporation.Theperformancecriteriafortheperformance-basedrestrictedstockawardsisacomparisonofrelativeTSRperformanceandEPSgrowthtothesamecriteriaofthePerformancePeerGroup,eachweightedequally,utilizingthefollowingrelativepaytoperformanceschedule:AchievementLevel PeerGroup AwardLevelMinimum 30thPercentile 50%Target Median 100%70thPercentile 70thPercentile 150%Maximum 90thPercentile 200%

The20-daystockpriceaveragesprecedingandincludingtheawarddateandprecedingandincludingthethree-yearanniversaryoftheawarddateareusedtodeterminetherelativeTSRperformance.TheEPSgrowthisdeterminedoverthethree-yearperformanceperiodbeginning


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withthestartofthefiscalyearofthegrantandendingatthecloseofthethirdfiscalyear.The2019tenure-basedawardsvestiftheNEOremainsemployedbytheCorporationonthethree-yearanniversaryofthedateoftheaward,subjecttoproratedvestinguponanearlierretirementorterminationduetodisability.

PLAN PERFORMANCE FACTOR. UndertheLTI,CMSAdjusted(non-GAAP)EarningsPerShare(“LTIEPS”)isdeterminedinaccordancewithGAAP,adjustedtoexcludethefollowing,ifapplicable:

• gainsorlossesonassetsaleswhichhavebeenexcludedfromadjustedEPSoraregreaterthan2%ofadjustedEPS;

• largerestructuringandseveranceexpensesgreaterthan$5million;

• legalandsettlementcostsorgainsrelatedtopreviouslysoldassets;

• regulatoryrecoveryforprioryearchanges;and

• unrealizedgainsorlosses,recognizedinnetincome,frommark-to-marketadjustmentsrelatedtoCMSEnterprises’interestexpense.

CAP ON PAYOUT. IfabsoluteTSRperformanceorLTIEPSgrowthisnegativeforthethree-yearperformanceperiod,thetotalpayoutforthethree-yearperformanceperiodcannotexceed100%ofthetotalawardbasedonrelativeTSRperformanceorLTIEPSgrowthascomparedtothePerformancePeerGroup.

RELATIVE TO PERFORMANCE RESULTS. In2019,theperformance-basedrestrictedstockawardsgrantedin2016completedthethree-yearperformanceperiod(January2016toDecember2018)andservicerequirements.The2016performance-basedrestrictedstockawardsvestedbaseduponourrelativeTSRandLTIEPSgrowthperformance.OurTSRforthethree-yearperformanceperiodwas56%whilethemedianTSRforourPerformancePeerGroupwas54%,placingCMS,bycomparison,atthe55thpercentile.OurLTIEPSGrowthforthethree-yearperformanceperiodwas23%whilethemedianEPSgrowthforourPerformancePeerGroupwas19%,placingCMS,bycomparison,atthe62thpercentile.Thisresultedinthe2016performance-basedrestrictedstockawardvestingat116%oftarget(TSR=112.5%andLTIEPSGrowth=129%).

In2020,theperformance-basedrestrictedstockawardsgrantedin2017completedthethree-yearperformanceperiod(January2017toDecember2019)andservicerequirements.The2017performance-basedrestrictedstockawardsvestedbaseduponourrelativeTSRandEPSgrowthperformance.OurTSRforthethree-yearperformanceperiodwas61%whilethemedianTSRforourPerformancePeerGroupwas44%,placingCMS,bycomparison,inthe72ndpercentile,resultinginavestinglevelof155.1%oftarget.OurEPSGrowthforthethree-yearperformanceperiodwas23%.OurEPSGrowthforthethree-yearperformanceperiod(January1,2017toDecember31,2019)relativetothePerformancePeerGroupisnotexpectedtobeknownuntilafterMarch20,2020.

IndeterminingtheamountofequitycompensationthatisprovidedtoeachNEOinagivenyear,weconsiderfactorssuchasretentionandincentivepractices,therelativepercentagesofcashandequitypaidbytheCompensationPeerGroupandothermarketdata.Basedonthesefactors,theCEOrecommendstotheCompensationCommitteerestrictedstockawardsfortheNEOs,otherthantheCEO.TheCompensationCommitteereviewsandapprovesormodifiestheequitygrantstotheotherNEOs.CEOrestrictedstockawardsaredeterminedbasedprincipallyonoverallCEOperformanceandCompensationPeerGroupdata.

Adjustmentsin2019equitytargetawardsascomparedto2018wereintendedtobetteralignequityawardswiththemarket.


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OPTION GRANTING PRACTICES.TherehavebeennostockoptiongrantssinceAugust2003andtherearenooutstandingoptions.TheCompensationCommitteeperiodicallyconsiderstheuseofstockoptionsaspartofthecurrentcompensationpackageforofficersbuthasdeterminednottoincludestockoptionsforLTIatthistime.Ifastockoptionweretobegranted,theStockPlanprohibits:

• re-pricingofstockoptionsbyreducingtheexerciseprice;

• buy-backs;and

• cancellationofpreviouslygrantedstockoptionsandsubsequentre-grantatalowerexercisepricethanthecanceledstockoption.

PerquisitesAspartofourcompetitivecompensationplan,theNEOsareeligibleforlimitedperquisitesprovidedbyorpaidforbyus,whichincludeanannualmandatoryexecutivephysicalexamination,retiredexecutivesurvivorbenefitsandrelocationexpenses.PerquisitesprovidedtotheNEOsarereviewedonaregularbasis.In2019,wepaidnorelocationexpensestoNEOs.

Physical ExaminationTheannualmandatoryphysicalexaminationsforallNEOsareatafacilityofourchoosingandatourexpense.ThephysicalisrequiredbecausetheCompensationCommitteebelievesthatitisaneffectivemethodofprotectingtheNEOsandusfrompreventablehealth-relateddisruptions.

Retired Executive Survivor BenefitTheretiredexecutivesurvivorbenefitplan,whichhasbeenclosedtonewparticipantssinceJuly1,2011,providesasurvivorbenefitafterretirementforcertainemployeeswhoheldhigh-levelmanagementorexecutivepositionspriortotheirretirement.Thisself-fundedplanisasupplementtotheretiredemployees’grouptermlifeinsuranceplan.Foradditionalinformationregardingtheretiredexecutivesurvivorbenefit,seePotential Payments upon Termination orChange-in-Control,below.

Post-Termination CompensationSEVERANCE AND CHANGE-IN-CONTROL BENEFITS. CertainNEOsareeligibletoreceiveseverancepaymentsandotherbenefitsiftheofficer’semploymentterminatesforaqualifyingeventorcircumstanceaswellaschange-in-controlbenefitsuponaqualifyingeventorcircumstanceaftertherehasbeenachange-in-controlofCMS.Foradditionalinformationregardingseveranceandchange-in-controlbenefits,includingadefinitionofkeytermsandaquantificationofbenefitsthatwouldhavebeenreceivedbytheNEOshadaqualifyingterminationorchange-in-controloccurredonDecember31,2019,seePotential Payments upon Termination or Change-in-Control, below.

Webelievethattheseseveranceandchange-in-controlarrangementsareanimportantpartofourexecutivecompensationprogramandwillhelptosecurethecontinuedemploymentanddedicationoftheNEOs,notwithstandinganyconcerntheymayhaveregardingtheirowncontinuedemployment,priortoorfollowingachange-in-control.TheseagreementsareusefulforrecruitmentandretentionasnearlyallmembersoftheCompensationPeerGrouphavecomparabletermsandconditionsinplacefortheirsenioremployees.

Deferred Compensation PlansWehavetwodeferredcompensationplansthatallowcertainemployees,includingtheNEOs,todeferreceiptofbasesalaryand/orincentivepayments:DeferredSalarySavingsPlan(“DSSP”)andtheAnnualIncentivePlan.TheAnnualIncentivePlanallowsfordeferralofupto100%ofthe


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annualincentiveaward.CMSdoesnotmatchincentiveamountsthataredeferredpursuanttotheAnnualIncentivePlan.ParticipantshaveonlyanunsecuredcontractualcommitmentfromustopaytheamountsdueunderboththeDSSPandtheAnnualIncentivePlan.ForadditionalinformationregardingtheDSSP,seeDSSP, under Narrative to 2019 NonqualifiedDeferred Compensation Table, below.

Weoffertheseplanstobecompetitivewithmarketpracticeandtopermithighlytaxedemployeestodefertheobligation,attheirdiscretion,topaytaxesoncertainelementsofcompensationthattheyareentitledtoreceive.TheprovisionsoftheDSSPandtheAnnualIncentivePlanpermitthemtodothiswhilealsoreceivinginvestmentreturnsondeferredamounts.WebelievethesebenefitsareusefulasretentionandrecruitmenttoolsasmanyoftheCompensationPeerGroupcompaniesprovidesimilarplanstotheirsenioremployees.

Tax Qualified Pension and Retirement PlansTheCorporationsponsorstax-qualifiedpensionandretirementsavingsplansthatcoverabroadgroupofemployees.

Pension PlanTheConsumersPensionPlan(“PensionPlan”)isafunded,tax-qualified,noncontributorydefined-benefitplanthatcoverssalariedemployees,includingNEOs,hiredonorbeforeJune30,2003.ReynoldsparticipatesinthePensionPlanandinaccordancewiththePensionPlan,startedreceivingbenefits45daysaftersheretired.ForadditionalinformationregardingthePensionPlan,seePension Plan, underNarrative to 2019 Pension Benefits and DB SERPTable,below.

Cash Balance PlanAninterimCashBalancePlanwasineffectforsalariedemployeeshiredbetweenJuly1,2003andAugust31,2005.TheCashBalancePlanisafunded,tax-qualified,noncontributorydefined-benefitplan.BenefitsundertheCashBalancePlanarebasedonemployees’earningsandplacedinanotionalaccountthatgrowsataprescribedinterestrateandispayablefromthegeneralassetsofthepensionfund.RochowisaparticipantintheCashBalancePlan.AllemployeesintheCashBalancePlanarenowparticipantsintheDefinedCompanyContributionPlan.

Defined Company Contribution PlanSalariedemployees,includingNEOs,hiredafterJune30,2003(includinganyonepreviouslyeligiblefortheCashBalancePlan),areeligibletoparticipateintheDefinedCompanyContributionPlan(“DCCP”),atax-qualified,noncontributory,definedcontributionplan.Weprovideacontributionrangingfrom5%to7%ofregularcompensationbasedontenuretotheDCCPonbehalfoftheemployee.Poppe,Hayes,Brossoit,RichandRochowaretheNEOscoveredundertheDCCP.ForadditionalinformationregardingtheDCCP,seeDCCP, underNarrative to 2019 AllOther Compensation Table, below.

Supplemental Executive Retirement Plans (“SERP”)TheCorporationmaintainstwosupplementalexecutiveretirementplansthatallowcertainemployees,includingeligibleNEOs,toreceivebenefitsinexcessofthebenefitsthatwouldbepayableunderthePensionPlanandDCCP.

Defined Benefit SERPTheDefinedBenefitSERP(“DBSERP”)isanunfundedplan,paidoutofourgeneralassets,whichprovidesanamountsubstantiallyequaltothedifferencebetweentheamountthatwouldhavebeenpayableunderthePensionPlan(ignoringIRClimits)andtheamountpayableunderthePensionPlan.Anyemployee,includinganyNEO,whowashiredor


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promotedtoaneligiblepositionafterMarch31,2006,isnoteligibletoparticipateintheDBSERP.ReynoldswastheonlyNEOeligiblefortheDBSERP.ForadditionalinformationregardingtheDBSERP,seeDB SERP, undertheNarrative to 2019 Pension Benefits and DB SERP Table, below.

Defined Contribution SERPTheDefinedContributionSERP(“DCSERP”)isanonqualifiedtaxdeferreddefinedcontributionplanestablishedforemployees,includingNEOs,noteligibletoparticipateintheDBSERP.Poppe,Hayes,Brossoit,RichandRochowparticipateintheDCSERP.Foradditionalinformation,seeDCSERP,underNarrative to 2019 Nonqualified DeferredCompensation Table, below.

WebelievethatourpensionandretirementplansandtheSERPsareausefulpartoftheNEOcompensationprogramandassistintheretentionofourseniorexecutivessincebenefitsincreaseforeachyearthattheseexecutivesremainemployedbyusandcontinuetheirworkonbehalfofourshareholdersandcustomers.Wehaveconsideredtheissueofpotentialoverlapbetweenthetwolong-termfocusedplans(SERPsandequitycompensation)andconcludedthatbothareappropriateelements.TheSERPsaredesignedtoprovideapredictableretirementincome,whiletheequityplanisperformance-basedandvariableandisdesignedtoaligntheinterestsofNEOswithourshareholdersandcustomers.Further,webelievebothlong-termfocusedplansareconsistentwithtypicalmarketpracticeandsupportiveofthephilosophytoprovideacompetitiveNEOcompensationprogram.

Employees’ Savings PlansUndertheEmployees’SavingsPlanforConsumersandaffiliatedcompanies,atax-qualifieddefinedcontributionretirementsavingsplan(“SavingsPlan”),participatingemployees,includingNEOs,maycontributeapercentageoftheirregularearningsintotheirSavingsPlanaccounts.Foradditionalinformation,seeSavings Plan, under Narrative to 2019 All OtherCompensation Table, below.WemaintaintheSavingsPlanforouremployees,includingtheNEOs,becausewewishtoencourageouremployeestosavesomepercentageoftheircashcompensationfortheireventualretirement.TheSavingsPlanpermitsemployeestomakesuchsavingsinamannerthatisrelativelytax-efficient.

Competitive DataTheCompensationPeerGroupdata,whereavailablebyposition,serveastheprimaryreferencepointforpaycomparisonsofutility-specificroles.Broadersurveydataandpublishedproxydataarealsoprovidedbythecompensationconsultantasapointofreferenceforutilityspecificrolesandcomparisonsofgeneralindustryroles(primarilyforstaffpositions).Whereavailablebyposition,PayGovernancegatherscompensationdatafromWillisTowersWatson’sEnergyServicesExecutiveDatabase(whichincludesapproximately50investor-ownedutilities)andWillisTowersWatson’sGeneralIndustryExecutiveDatabase(whichincludesmorethan500participatingcompanies),whichitsize-adjustsbasedonCMS’revenuestoprovideadditionalmarketcontexttotheCompensationPeerGroup.InselectingmembersoftheCompensationPeerGroup,financialandoperationalcharacteristicsareconsideredbytheCompensationCommittee.ThecriteriaforselectionoftheCompensationPeerGroupincludedcomparablerevenue(rangingfromapproximately28%to224%ofCMS)relevantindustrycharacteristics,businessmix(revenuemixbetweenregulatedandnon-regulatedoperations)andavailabilityofcompensationandfinancialperformancedata.


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The2019CompensationPeerGroupiscomposedofthecompaniessetforthbelow.The2019CompensationPeerGroupisunchangedfromtheCompensationPeerGroupusedtoevaluate2018compensationdecisions.

AlliantEnergyCorporation EntergyCorporation PublicServiceEnterpriseGroupIncorporatedAmerenCorporation EversourceEnergy SCANACorporation

AtmosEnergyCorporation HawaiianElectricIndustries,Inc. SempraEnergyCenterPointEnergy,Inc. NiSourceInc. WECEnergyGroup,Inc.ConsolidatedEdison,Inc. OGEEnergyCorp. XcelEnergyInc.DTEEnergyCompany PinnacleWestCapitalCorporation —EdisonInternational PPLCorporation —

TheCompensationCommitteerecognizesthatthereisadifferencebetweenthecompaniesagainstwhichwecompeteforexecutivetalent(“CompensationPeerGroup”)andthecompaniesagainstwhichwecompeteforcapital(“PerformancePeerGroup”)and,therefore,usesdifferentpeergroupsforthesetwodifferentpurposes.Forthisreason,theCompensationCommitteeapprovedtheuseoftheCompensationPeerGroupshownabove,forevaluating2019NEOcompensationdecisionsandalargerpeergroup,thePerformancePeerGroupshownbelow,asareferenceforrelativeperformance.ThePerformancePeerGroupisusedtomeasurerelativeTSRperformanceandEPSgrowth.TheCompensationCommittee’srationaleforusingtwopeergroupsistoprovideappropriatecomparativecompaniesrelativetothedifferentattributesbeingevaluatedforcompensationandrelativeperformancepurposes.Inaddition,thelargerPerformancePeerGroupconsideredbytheCompensationCommitteewasintendedtoprovideforbettergradationofresultingperformancepositionthantheCompensationPeerGroupcouldhave,givenitssize.

Forawardsmadein2019,thePerformancePeerGroupwascomposedofthepubliclytradedutilitiesincludedintheS&P500andS&PMidcap400indexes.IfaPerformancePeerGroupcompanyisnolongertradingasoftheLTIvestingdate,itisexcludedfromtheLTIperformancecalculation.Asofthe2019LTIgrantdates,thePerformancePeerGroupconsistedofthefollowingcompanies:

ALLETE,Inc. EntergyCorporation OGEEnergyCorp.AlliantEnergyCorporation Evergy,Inc. ONEGas,Inc.

AmerenCorporation EversourceEnergy PG&ECorporationAmericanElectricPowerCompany,Inc. ExelonCorporation PinnacleWestCapitalCorporationAmericanWaterWorksCompany,Inc. FirstEnergyCorp. PNMResources,Inc.

AquaAmerica,Inc. HawaiianElectricIndustries,Inc. PPLCorporationAtmosEnergyCorporation IdaCorp,Inc. PublicServiceEnterpriseGroupIncorporatedBlackHillsCorporation MDUResourcesGroup,Inc. SempraEnergyCenterPointEnergy,Inc. NationalFuelGasCompany SouthwestGasCorporationConsolidatedEdison,Inc. NewJerseyResourcesCorp. TheSouthernCompanyDominionResources,Inc. NextEraEnergy,Inc. TheAESCorporationDTEEnergyCompany NiSourceInc. UGICorporation

DukeEnergyCorporation NorthwesternCorporation WECEnergyGroup,Inc.EdisonInternational NRGEnergy,Inc. XcelEnergyInc.

Corporate Governance as it Relates to Executive Compensation

Stock Ownership GuidelinesWehaveestablishedstockownershipguidelinesforourofficers.TheseguidelinesrequireourofficerstomaintainorestablishanequitystakeinCMSandtherebymorecloselylinktheirinterestswiththoseofourshareholders.Thesestockownershipguidelinesprovidethat,withinfiveyearsofbecominganofficerorreceivingapromotiontoahigherownershiprequirement,


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eachofficermustownsharesofCMScommonstockwithavalueofonetofivetimesbasesalary,dependingonhisorherposition.Sharesofperformance-basedrestrictedstockarenotcountedtowardstockownershipguidelines.AllofourcontinuingNEOswereincompliancewiththeseguidelinesasofDecember31,2019.

ThefollowingtableillustratestherequiredNEOstockownershipguidelinesforourcontinuingNEOs:PatriciaK.Poppe 5XbasesalaryRejjiP.Hayes 3XbasesalaryJean-FrancoisBrossoit 2XbasesalaryBrianF.Rich 2XbasesalaryGarrickJ.Rochow 2Xbasesalary

Failureofanofficertocomplywiththeguidelinesshallresultinthefollowing:

• Allfuturerestrictedstockawardswillhavesalerestrictionsuntilcomplianceisachieved;

• Ifafterthreeyears,anofficerisnotactivelymakingprogresstowardtheguidelines,50%ofanyannualincentivemaybepaidinsharesofrestrictedstockatthediscretionoftheCompensationCommittee;

• Afterthecompliancedeadline,officerswillnotbeauthorizedtosellsharesofCMScommonstockifsuchasalewouldcausethemtodropbelowtheownershipguidelines;and

• Afterthecompliancedeadline,alloraportionofanyannualincentivewillbepaidinsharesofrestrictedstockasnecessarytobringtheofficerintocompliancewiththeownershipguidelines.

Clawback ProvisionsTheCompensationCommitteehasapproved“clawback”provisionsforcertaincompensationandbenefitplans.TheseprovisionsprovidetheCompensationCommitteewiththediscretiontorequiretheforfeitureandreturnofpastbenefitsorawardsifthereisarestatementoffinancialresults.TheCompensationCommitteemayalso,atitsdiscretion,requireareturnofabenefitorawardintheeventofamistakeoraccountingerrorinthecalculationofsuchbenefitoraward.

Shareholder’s Advisory Vote to Approve Executive CompensationAspartoftheCompensationCommittee’son-goingreviewofexecutivecompensation,weconsideredtheaffirmative2019CMSshareholderadvisoryvote(approximately98%ofthevotescast)toapproveexecutivecompensationasdescribedinlastyear’sProxyStatementanddeterminedthatthecurrentphilosophy,objectivesandcompensationelementscontinuetobeappropriate.Assuch,theCompensationCommitteedidnotmakeanychangestoourexecutivecompensationprogramsinresponsetothe2019CMSshareholdervote.DespitetheoverwhelminglyhighlevelofCMSshareholdersupport,wecontinuetomonitorbestpracticesandemergingtrendsandengagewithourlargeinstitutionalholdersregardingcompensationelements.


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COMPENSATION AND HUMAN RESOURCES COMMITTEE REPORTTheCompensationCommitteeoftheBoardofDirectorsofCMSandConsumersoverseeCMS’andConsumers’compensationprogramsonbehalfoftheBoard.Infulfillingtheiroversightresponsibilities,theCompensationCommitteereviewedanddiscussedwithmanagementtheCompensation Discussion and AnalysissetforthinthisCombinedProxyStatement.

Inrelianceonthereviewanddiscussionsreferredtoabove,theCompensationCommitteerecommendedtotheBoardthattheCompensation Discussion and AnalysisbeincludedinCMS’andConsumers’AnnualReportonForm10-KforthefiscalyearendedDecember31,2019,andCMS’andConsumers’ProxyStatementonSchedule14ArelatingtoCMS’andConsumers’2020AnnualMeetingofShareholderseachofwhichwillbeorhasbeenfiledwiththeSEC.

COMPENSATIONANDHUMANRESOURCESCOMMITTEE

KurtL.Darrow(Chair)JonE.BarfieldStephenE.EwingRonaldJ.Tanski(1)(1) TanskiwasappointedtotheCompensationCommitteeeffectiveNovember8,2019.


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2019 COMPENSATION TABLES

2019 Summary Compensation TableThefollowingtablecontainscompensationinformationfortheNEOsofCMSandConsumersfor2019and,totheextentrequiredbySECexecutivecompensationdisclosurerules,2018and2017.

2019 SUMMARY COMPENSATION TABLE

Salary(1)

Bonus(2)

StockAwards

(3)

Non-EquityIncentivePlan

Compensation(4)



CompensationEarnings

(5)

AllOtherCompensation

(6) TotalNameandPrincipalPosition(a)

Year(b) ($)(c) ($)(d) ($)(e) ($)(f) ($)(g) ($)(h) ($)(i)

Patricia K. Poppe PresidentandCEO,CMSandConsumers

2019 1,250,000 — 5,381,113 1,830,000 — 525,589 8,986,7022018 1,200,000 — 4,609,710 1,876,800 — 404,675 8,091,1852017 1,100,000 — 4,263,888 1,144,000 — 354,407 6,862,295

Rejji P. Hayes (7) ExecutiveVicePresidentandCFO,CMSandConsumers

2019 620,000 — 1,434,975 567,300 — 209,635 2,831,9102018 610,000 — 1,154,870 580,720 — 163,083 2,508,673

2017 400,000 775,000 1,249,978 291,200 — 70,243 2,786,421

Catherine M.Reynolds (8) FormerSeniorVicePresident,CMSandConsumers

2019 309,000 — 1,024,960 245,037 1,926,465 16,522 3,521,9842018 618,000 — 970,475 546,312 906,215 28,240 3,069,242

2017 600,000 — 1,015,195 374,400 1,810,769 27,781 3,828,145

Jean-FrancoisBrossoit (9) SeniorVicePresident,CMSandConsumers

2019 455,000 — 691,873 360,815 — 106,140 1,613,8282018 — — — — — — —

2017 — — — — — — —

Brian F. Rich (10) SeniorVicePresident,CMSandConsumers

2019 470,000 — 691,873 372,710 — 104,748 1,639,3312018 460,000 — 533,768 406,640 — 89,727 1,490,1352017 — — — — — — —

Garrick J. Rochow SeniorVicePresident,CMSandConsumers

2019 540,000 — 871,211 461,160 161 130,892 2,003,4242018 525,000 — 752,099 464,100 138 113,575 1,854,9122017 508,333 — 629,411 326,300 114 111,761 1,575,919

(1) TheamountsreportedinthiscolumnincludeamountsdeferredbytheNEOs.

(2) Amountreportedfor2017relatestoHayes’cashsign-onbonus.

(3) Theamountsrepresenttheaggregategrantdatefairvalueoftheawards,which,withrespecttothoseawardswithaperformancecomponent,isbasedupontheprobableoutcomeoftheperformanceconditions,determinedpursuanttotheFinancialAccountingStandardsBoardAccountingStandardsCodificationTopic718Compensation—StockCompensation(ASC718)andtakeintoaccounttheexpectedCMScommonstockdividendyieldassociatedwiththe2017,2018and2019awards.SeeNote13,Stock-BasedCompensation,totheConsolidatedFinancialStatementsincludedinCMS’andConsumers’AnnualReportonForm10-KfortheyearendedDecember31,2019,foradiscussionoftherelevantassumptionsusedincalculatingtheaggregategrantdatefairvaluepursuanttoASC718.TheTSRvestingconditionrelatedtotheperformance-basedrestrictedstockawardsisconsideredamarketconditionandnotaperformanceconditionunderASC718.Accordingly,thereisnograntdatefairvaluebeloworinexcessoftheamountsreflectedinthetableabovethatcouldbecalculatedanddisclosedbasedonachievementofmarketconditions.TheEPSgrowthvestingconditionisaperformanceconditionunderASC718.The2019grantdatefairvaluefortheEPSgrowthperformance-basedrestrictedstockwas$1,968,735forPoppe;$525,010forHayes;$375,007forReynolds;$253,155forBrossoit;$253,155forRich;and$318,756forRochow.ThegrantdatefairvaluefortheEPSgrowthperformance-basedrestrictedstock,assumingthemaximumachievementoftheperformancegoals,wouldhavebeen$3,937,470forPoppe;$1,050,019forHayes;$750,014forReynolds;$506,310forBrossoit;$506,310forRich;and$637,512forRochow.

(4) Theamountsreportedinthiscolumnfor2019consistofcashincentiveawardsearnedin2019underourAnnualIncentivePlan.

(5) ThiscolumndoesnotreflectcompensationpaidtotheNEObutinsteadrepresentstheaggregateannualincrease,asofDecember31,2017,December31,2018,andDecember31,2019,inactuarialvaluesofeachoftheparticipatingNEO’sbenefitsunderourPensionPlan(includingtheCashBalancePlan)andDBSERP.TheactuarialvaluesarecalculatedpursuanttoFinancialAccountingStandardsBoardAccountingCodificationTopic715,Compensation—RetirementBenefits(ASC715),andtakeintoaccountdiscountratesandimplementationofthecurrent2019mortalitytable.SeeNote12,RetirementBenefits,totheConsolidatedFinancialStatementsincludedinCMS’andConsumers’AnnualReportonForm10-KfortheyearendedDecember31,2019,foradiscussionoftherelevantassumptionsusedindeterminingtheseamounts.Poppe,Hayes,Brossoit,RichandRochowdonotparticipateinthePensionPlanorDBSERP;however,RochowwascoveredbythecashbalanceprovisionsofthePensionPlan.

(6) Detailsupportingallothercompensationfor2019isreflectedinthe2019 All Other Compensation Table,below.

(7) EffectiveMay1,2017,HayeswasappointedtothepositionofCFO,CMSandConsumers.

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(8) ReynoldsretiredeffectiveJuly1,2019.For2019,column(g)reflectstheincreaseinpensionvaluepriortoretirement.Reynoldselectedtotakealumpsumatretirementforthefullpensionvalueof$2,072,030asshowninthe2019PensionBenefitsandDBSERPtable.

(9) BrossoitwasnotaNEOpriorto2019.

(10)RichwasnotaNEOpriorto2018.

Narrative to 2019 Summary Compensation TableEmployment Agreements

During2019,noneoftheNEOswereemployedpursuanttoatraditionalemploymentagreementwithCMSorConsumers.Poppe,Hayes,Brossoit,RichandRochowhaveenteredintoaChange-in-ControlAgreementandanOfficerSeparationAgreement.Whileemployed,ReynoldswasalsoapartytoaChange-in-ControlandOfficerSeparationAgreement.PleaseseePotential Payments Upon Termination or Change-in-Control, below,foradescriptionofsuchagreements.

Restricted Stock AwardsPleaseseeCompensation Discussion and Analysis, The Elements of Our Executive Compensation Program, EquityCompensation, aboveforadescriptionoftheStockPlan,pursuanttowhichrestrictedstockisawarded.

Cash IncentivesIn2019,theCompensationCommitteeestablishedpotentialcashincentivesforeachoftheNEOsundertheAnnualIncentivePlan.TheamountofthepotentialincentivewastiedtosatisfactionofAnnualIncentiveEPSandAnnualIncentiveOCFtargetsapprovedbytheCompensationCommittee.TheAnnualIncentivePlanincentiveswereearnedbytheNEOsat122%oftargetandarereportedas“Non-EquityIncentivePlanCompensation”inthe2019SummaryCompensationTable.PleaseseeCompensation Discussion and Analysis, The Elements of Our ExecutiveCompensation Program, Cash Compensation, aboveforadescriptionoftheAnnualIncentivePlan.

Salary and Incentive in Proportion to Total Compensation as Defined by the 2019 Summary Compensation TableTheNEOsgenerallyreceivefrom34%to53%oftheirtotaldirectcompensationintheformofbasesalaryandcashincentiveawardsunderourAnnualIncentivePlan.Asnotedabove, webelievethatasubstantialportionofeachNEO’scompensationshouldbeintheformofequityawards.WebelievethatourcurrentcompensationprogramgivestheNEOssubstantialalignmentwithshareholders,whilealsopermittingustoprovideincentivetotheNEOtopursuespecificannualandlong-termperformancegoals.PleaseseeCompensation Discussion and Analysis, Objectives ofOur Executive Compensation Program, aboveforadescriptionoftheobjectivesofourcompensationprogramandoverallcompensationphilosophy.


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2019 All Other Compensation TableWeprovidetheNEOswithadditionalbenefitsthatwebelievearereasonable,competitiveandconsistentwithCMS’andConsumers’overallexecutivecompensationprogram.Thefollowingtablecontainsinformationregardingtheseotherbenefitsfor2019.

2019 ALL OTHER COMPENSATION TABLE

RegistrantContributionstoEmployees’

SavingsPlanandDCCP

RegistrantContributionstoNonqualifiedDeferred

CompensationPlans(1)

LifeInsurancePremium Other(12) Total

Name ($) ($) ($) ($) ($)PatriciaK.Poppe 26,957(2) 493,820(3) 1,212 3,600 525,589RejjiP.Hayes 25,200(4) 179,708(5) 1,127 3,600 209,635CatherineM.Reynolds 11,200 1,160 562 3,600 16,522Jean-FrancoisBrossoit 25,200(6) 76,512(7) 828 3,600 106,140BrianF.Rich 26,629(8) 73,664(9) 855 3,600 104,748GarrickJ.Rochow 29,500(10) 96,810(11) 982 3,600 130,892

(1) Theamountsreflectedinthiscolumnarealsodisclosedinthesubsequent2019NonqualifiedDeferredCompensationTable(column(c)).

(2) Includes$16,800contributedbytheCorporationundertheDCCP.

(3) Includes$455,020contributedbytheCorporationundertheDCSERPand$38,800contributedbytheCorporationundertheDSSP.






(9) Includes$73,664contributedbytheCorporationundertheDCSERP.



(12)TheamountsreflectedinthiscolumnrepresentthemaximumamountexpendedonanindividualmandatoryannualexecutivephysicalexaminationforaNEO.ThemaximumamountisusedforallNEOstoensurethatnoprotectedhealth-relatedinformationisdisclosed.

Narrative to 2019 All Other Compensation TableDCCP

Salariedemployees,includingNEOs,hiredafterJune30,2003areeligibletoparticipateintheDCCP.UndertheDCCP,CMSprovidesacontributionbasedonregularcompensationtieredfortenureasfollows:0-5yearsequals5%(unlesshiredbeforeJanuary1,2016,6%);6-11yearsequals6%;and12plusyearsequals7%,uptotheIRCcompensationlimit($285,000for2019),totheDCCPonbehalfoftheemployeewhichvestsimmediatelyandispayableuponterminationofemployment.Poppe,Hayes,Brossoit,RichandRochowaretheNEOscoveredundertheDCCPandareeligibletoreceiveacontributionequalto6%,5%,5%,6%and7%,respectively,ofregularcompensation.

Savings PlanUndertheSavingsPlanforConsumersandaffiliatedcompanies,participatingemployeesmaycontributeapercentageoftheirregularearningsintotheirSavingsPlanaccounts.NEOs,becausetheyareconsideredhighlycompensated,mayonlycontributeupto20%,subjecttotheIRCannualdollarlimit.Inaddition,undertheSavingsPlan,anamountequalto100%ofthefirst3%and50%ofthenext2%ofemployees’regularearningscontributionsarematchedbytheCorporation.Thematchingcontributionisallocatedamongtheparticipantemployees’investmentchoices.AmountsheldinSavingsPlanaccountsmaynotbewithdrawnpriortotheemployee’sterminationofemployment,orsuchearliertimeastheemployeereachestheageof59½,subjecttocertainexceptionssetforthintheIRCregulations.


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2019 Grants of Plan-Based Awards TableThefollowingtablesummarizesnon-equityandequityawardsmadetotheNEOsduring2019.

2019 GRANTS OF PLAN-BASED AWARDS TABLE

EstimatedFuturePayoutsUnderNon-

EquityIncentivePlanAwards(1)

EstimatedFuturePayoutsUnder

EquityIncentivePlanAwards(2)

AllOtherStockAwardsNumberSharesofStock(3)(#)(i)

GrantDateFair

ValueofStockAwards(4)

($)(j)Name(a)GrantDate

(b)Threshold($)(c)

Target($)(d)

Maximum($)(e)

Threshold(#)(f)

Target(#)(g)

Maximum(#)(h)

PatriciaK.Poppe 1/16/2019 — — — 38,954 77,908 155,816 — 4,068,5891/16/2019 — — — — — — 25,970 1,312,524 — 225,000 1,500,000 3,000,000 — — — — —

RejjiP.Hayes 1/16/2019 — — — 10,388 20,776 41,552 — 1,084,9851/16/2019 — — — — — — 6,925 349,990 — 69,750 465,000 930,000 — — — — —

CatherineM.Reynolds(5) 1/16/2019 — — — 7,420 14,840 29,860 — 774,9901/16/2019 — — — — — — 4,946 249,971 — 60,255 401,700 803,400 — — — — —

Jean-FrancoisBrossoit 1/16/2019 — — — 5,009 10,018 20,036 — 523,1701/16/2019 — — — — — — 3,338 168,703 — 44,363 295,750 591,500 — — — — —

BrianF.Rich 1/16/2019 — — — 5,009 10,018 20,036 — 523,1701/16/2019 — — — — — — 3,338 168,703 — 45,825 305,500 611,000 — — — — —

GarrickJ.Rochow 1/16/2019 — — — 6,307 12,614 25,228 — 658,7411/16/2019 — — — — — — 4,204 212,470 — 56,700 378,000 756,000 — — — — —

(1) TheseamountsconsistofcashawardsunderourAnnualIncentivePlan.ForeachNEO,thepaymentwas122%oftargetandisreportedasNon-EquityIncentivePlanCompensationinthe2019 Summary Compensation Table.Thesecashawardsweregrantedandearnedin2019,withthepayoutsapprovedbytheCompensationCommitteeinearlyFebruary2020andtheawardspaidinlateFebruary2020.

(2) Theseawardsconsistoftheperformance-basedrestrictedstockawardedunderourStockPlan.Seventy-fivepercent(75%)ofthe2019annualrestrictedstockawardswereperformance-basedandvest100%threeyearsaftertheoriginalawarddate,contingentonacomparisonofTSRperformanceandEPSgrowthtothePerformancePeerGroupduringtheJanuary1,2019toDecember31,2021performanceperiod.

(3) Theseawardsconsistoftheremaining25%ofthe2019annualrestrictedstockawardsawardedunderourStockPlanthatvestbasedupontenureonlyonthethree-yearanniversaryoftheawarddate.

(4) Theamountsincolumn(j)arebasedupontheaggregategrantdatefairvalueoftheawardsreportedincolumns(g)and(i)asdeterminedpursuanttoASC718,baseduponprobableoutcomeoftheperformance-basedvestingconditions.SeeNote13,Stock-BasedCompensation,totheConsolidatedFinancialStatementsincludedinCMS’andConsumers’AnnualReportonForm10-KfortheyearendedDecember31,2019,foradiscussionoftherelevantassumptionsusedincalculatingtheseamountspursuanttoASC718.

(5) ReynoldsreceivedaproratedannualincentiveamountbaseduponherretirementdateofJuly1,2019.


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ThefollowingtablesprovideinformationregardingunvestedrestrictedstockawardsforeachoftheNEOsatDecember31,2019.

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END 2019 TABLESOutstanding Equity Awards – Patricia K. Poppe OptionAwards StockAwards

GrantDateandVestDate

NumberofSecuritiesUnderlyingUnexercisedOptions–Exercisable

NumberofSecuritiesUnderlyingUnexercisedOptions–

Unexercisable

OptionExercisePrice

OptionExpiration

Date

NumberofSharesorUnitsofStockThatHave

NotVested(3)

MarketValueofSharesorUnits

ofStockThatHave

NotVested(4)

EquityIncentive

PlanAwards:NumberofUnearnedShares,

UnitsorOtherRightsThat

HaveNotVested

(3)(5)

EquityIncentivePlanAwards:MarketorPayoutValueofUnearned

Shares,UnitsorOtherRights

ThatHave

NotVested(4)(5)(6)

(#)(b) (#)(c) ($)(d) ($)(e) (#)(f) ($)(g) (#)(h) ($)(i)1/18/2017-1/18/2020 — — — — 24,888 $ 1,563,962 — —1/18/2017-1/18/2020(1) — — — — 62,984 $ 3,957,915 — —1/18/2017-3/20/2020(2) — — — — 60,914 $ 3,827,836 — —1/17/2018-1/17/2021 — — — — 26,656 $ 1,675,063 — —1/17/2018-1/17/2021 — — — — — — 84,594 $ 5,315,8871/17/2018-3/19/2021 — — — — — — 63,446 $ 3,986,9471/16/2019-1/16/2022 — — — — 25,970 $ 1,631,955 — —1/16/2019-1/16/2022 — — — — — — 59,978 $ 3,769,0181/16/2019-3/18/2022 — — — — — — 79,970 $ 5,025,315

Outstanding Equity Awards – Rejji P. Hayes OptionAwards StockAwards




Unexercisable

OptionExercisePrice

OptionExpiration

Date

NumberofSharesorUnits

ofStockThatHave

NotVested(3)


ofStockThatHaveNotVested

(4)

EquityIncentivePlanAwards:NumberofUnearnedShares,


HaveNotVested

(3)(5)

EquityIncentivePlanAwards:

MarketorPayoutValueofUnearned


ThatHave

NotVested(4)(5)(6)

(#)(b) (#)(c) ($)(d) ($)(e) (#)(f) ($)(g) (#)(h) ($)(i)5/1/2017-5/1/2020 — — — — 27,685 $ 1,739,725 — —1/17/2018-1/17/2021 — — — — 6,678 $ 419,646 — —1/17/2018-1/17/2021 — — — — — — 21,194 $ 1,331,8311/17/2018-3/19/2021 — — — — — — 15,896 $ 998,9051/16/2019-1/16/2022 — — — — 6,925 $ 435,167 — —1/16/2019-1/16/2022 — — — — — — 15,993 $ 1,005,0001/16/2019-3/18/2022 — — — — — — 21,324 $ 1,340,000


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Outstanding Equity Awards – Catherine M. Reynolds OptionAwards StockAwards




Unexercisable

OptionExercisePrice

OptionExpiration

Date

NumberofSharesorUnits

ofStockThatHave

NotVested(3)(7)


ofStockThatHave

NotVested(4)



HaveNotVested(3)(5)(7)



ThatHave

NotVested(4)(5)(6)

(#)(b) (#)(c) ($)(d) ($)(e) (#)(f) ($)(g) (#)(h) ($)(i)1/18/2017-1/18/2020 — — — — — — — —1/18/2017-1/18/2020(1) — — — — 12,499 $ 785,437 — —1/18/2017-3/20/2020(2) — — — — 12,089 $ 759,673 — —1/17/2018-1/17/2021 — — — — — — — —1/17/2018-1/17/2021 — — — — — — 8,908 $ 559,7791/17/2018-3/19/2021 — — — — — — 6,681 $ 419,8341/16/2019-1/16/2022 — — — — — — — —1/16/2019-1/16/2022 — — — — — — 1,905 $ 119,7101/16/2019-3/18/2022 — — — — — — 2,540 $ 159,614

Outstanding Equity Awards – Jean-Francois Brossoit OptionAwards StockAwards




Unexercisable

OptionExercisePrice

OptionExpiration

Date


NotVested(3)


ofStockThatHave

NotVested(4)



HaveNotVested

(3)(5)



ThatHave

NotVested(4)(5)(6)

(#)(b) (#)(c) ($)(d) ($)(e) (#)(f) ($)(g) (#)(h) ($)(i)1/18/2017-1/18/2020 — — — — 2,618 $ 164,515 — —1/18/2017-1/18/2020(1) — — — — 6,631 $ 416,692 — —1/18/2017-3/20/2020(2) — — — — 6,413 $ 402,993 — —1/17/2018-1/17/2021 — — — — 3,086 $ 193,924 — —1/17/2018-1/17/2021 — — — — — — 9,796 $ 615,5811/17/2018-3/19/2021 — — — — — — 7,347 $ 461,6851/16/2019-1/16/2022 — — — — 3,338 $ 209,760 — —1/16/2019-1/16/2022 — — — — — — 7,712 $ 484,6221/16/2019-3/18/2022 — — — — — — 10,282 $ 646,121


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Outstanding Equity Awards – Brian F. Rich OptionAwards StockAwards




Unexercisable

OptionExercisePrice

OptionExpiration

Date


NotVested(3)


ofStockThatHave

NotVested(4)



HaveNotVested

(3)(5)



ThatHave

NotVested(4)(5)(6)

(#)(b) (#)(c) ($)(d) ($)(e) (#)(f) ($)(g) (#)(h) ($)(i)1/18/2017-1/18/2020 — — — — 2,845 $ 178,780 — —1/18/2017-1/18/2020(1) — — — — 7,199 $ 452,385 — —1/18/2017-3/20/2020(2) — — — — 6,962 $ 437,492 — —1/17/2018-1/17/2021 — — — — 3,086 $ 193,924 — —1/17/2018-1/17/2021 — — — — — — 9,796 $ 615,5811/17/2018-3/19/2021 — — — — — — 7,347 $ 461,6851/16/2019-1/16/2022 — — — — 3,338 $ 209,760 — —1/16/2019-1/16/2022 — — — — — — 7,712 $ 484,6221/16/2019-3/18/2022 — — — — — — 10,282 $ 646,121

Outstanding Equity Awards – Garrick J. Rochow OptionAwards StockAwards




Unexercisable

OptionExercisePrice

OptionExpiration

Date


NotVested(3)


ofStockThatHave

NotVested(4)



HaveNotVested

(3)(5)



ThatHave

NotVested(4)(5)(6)

(#)(b) (#)(c) ($)(d) ($)(e) (#)(f) ($)(g) (#)(h) ($)(i)1/18/2017-1/18/2020 — — — — 3,673 $ 230,811 — —1/18/2017-1/18/2020(1) — — — — 9,297 $ 584,223 — —1/18/2017-3/20/2020(2) — — — — 8,991 $ 564,994 — —1/17/2018-1/17/2021 — — — — 4,348 $ 273,228 — —1/17/2018-1/17/2021 — — — — — — 13,804 $ 867,4431/17/2018-3/19/2021 — — — — — — 10,353 $ 650,5831/16/2019-1/16/2022 — — — — 4,204 $ 264,179 — —1/16/2019-1/16/2022 — — — — — — 9,711 $ 610,2391/16/2019-3/18/2022 — — — — — — 12,948 $ 813,652

(1) Includedincolumn(f)arethe2017performance-basedrestrictedstockawards,whichvestedbasedonacomparisonofTSRtothePerformancePeerGroupoverJanuary1,2017throughDecember31,2019performanceperiodandrecipient’scontinuedservicethroughJanuary18,2020.BecausetheperformanceperiodconcludedasofDecember31,2019,theseawardsarereportedincolumn(f)astheyremainsubjecttopost-performanceperiodtenure-basedvestingrequirements.Thenumberofsharesreflectstheactualsharesearnedbasedonthepayoutpercentageachievedof155.1%.

(2) Includedincolumn(f)arethe2017performance-basedrestrictedstockawards,whichvestbasedonacomparisonofEPSgrowthtothePerformancePeerGroupovertheJanuary1,2017throughDecember31,2019performanceperiodandtherecipient’scontinuedservicethroughMarch20,2020.BecausetheperformanceperiodconcludedasofDecember31,2019,theseawardsarereportedincolumn(f)astheyremainsubjecttopost-performanceperiodtenure-basedvestingrequirements.TheCompensationCommitteewillnotbeabletodetermineperformanceuntilafterMarch20,2020.Forpurposesofthistable,wehaveincludedtheawardsbasedon150%ofthetargetlevelawarded.

(3) Outstandingsharesofrestrictedstock(baseduponthecombinationoftenure-basedawards(column(f))reflectedattheoriginalshareamountsawarded(otherthanasnotedinfootnotes(1)and(2)tothesetables)andperformance-basedawards(column(h))arereflectedatthe150%percentagelevelfor2018EPSsharesand2019TSRsharesandat200%for2018TSRsharesand2019EPSsharesawardedundertheStockPlan).Forperformance-basedrestrictedstockawards,inlieuofdividends,recipientsreceiveadditionalperformance-basedsharesofrestrictedstockthatwillvest/forfeitbasedonCMS’performanceandareincludedabove.

(4) Calculatedbasedupontheyear-endclosingpriceofCMScommonstockof$62.84pershare.


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(5) PerSECregulations,thesharesanddollarsdisclosedintheabovetableincolumns(h)and(i),arebaseduponthenexthigherperformancelevelabovetargetallowableundertheStockPlan.PleaseseeCompensation Discussion and Analysis, The Elements of Our ExecutiveCompensation Program, Equity Compensation, aboveforadescriptionoftheStockPlan.

(6) Theperformanceperiodforeachperformance-basedgrantisasfollow:2017:1/1/2017–12/31/20192018:1/1/2018–12/31/20202019:1/1/2019–12/31/2021

(7) Uponretirement,tenuresharesvestpro-ratablybasedonthemonthsofserviceprovidedovertheperformanceperiod.Paymentisonretirementdate.Uponretirement,performancesharesareheld,andthepro-rataportionofsharesbasedonthemonthsofserviceprovidedduringtheperformanceperiodvestaccordingtotheachievementoftheperformancegoalsattheendoftheperformanceperiod.Paymentisonthevestingdate.Columns(f)and(h)reflectReynolds’remainingoutstandingsharesofperformance-basedrestrictedstockproratedbasedonherretirementeffectiveJuly1,2019.

2019 Stock VestedThefollowingtableprovidesinformationconcerningthevestingofstockduring2019foreachNEO.

2019 STOCK VESTED TABLE OptionAwards StockAwards

NumberofSharesAcquiredonExercise

ValueRealizedOnExercise

NumberofSharesAcquiredonVesting

ValueRealizedOnVesting(1)

Name(a) (#) ($) (#)(b) ($)(c)PatriciaK.Poppe(2) — — 75,305 4,126,477RejjiP.Hayes — — — —CatherineM.Reynolds(3) — — 34,492 1,863,351Jean-FrancoisBrossoit(4) — — 21,677 1,333,569BrianF.Rich — — 12,789 674,466GarrickJ.Rochow — — 14,518 765,649

(1) ThevaluerealizedisbasedupontheCMScommonstockclosingpriceof$50.88onJanuary20,2019and$55.22onMarch21,2019.In2019,therestrictedstockawardsfrom2016completedtheirthree-yearperformanceperiod.TSRforthethree-yearperiodfromJanuary2016toDecember2018was56%whilethemedianTSRforthePerformancePeerGroupwas54%resultingintheperformance-basedrestrictedstockvestingat113%oftargetonJanuary20,2019.OurEPSGrowthforthethree-yearperiodfromJanuary2016toDecember2018was23%whilethemedianEPSGrowthforthePerformancePeerGroupwas18%resultingintheperformance-basedrestrictedstockvestingat145%oftargetonMarch21,2019.

(2) Includes20,000sharesoftenure-basedrestrictedstockgrantedonNovember13,2014,whichvestedonNovember13,2019withastockpriceatdateofvestingof$60.49.

(3) Reynolds’amountsincludethevestingof8,568sharesofrestrictedstock,effectiveJuly1,2019,inconnectionwithherretirement,atavalueof$496,173basedonastockpriceonsuchdateof$57.91.

(4) Includes21,677sharesoftenure-basedrestrictedstockgrantedonNovember28,2016,whichvestedonNovember28,2019withastockpriceatdateofvestingof$61.52.


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2019 Pension Benefits and DB SERPThefollowingtableprovidesinformationconcerningdefinedbenefitplansasofDecember31,2019foreachNEO.

2019 PENSION BENEFITS AND DB SERP TABLE

NumberofYearsCreditedService(1)

PresentValueofAccumulatedBenefit

PaymentsduringLastFiscalYear

Name(a) PlanName(b) (#)(c) ($)(d) ($)(e)PatriciaK.Poppe(2) PensionPlan N/A N/A N/A

DBSERP N/A N/A N/ARejjiP.Hayes(2) PensionPlan N/A N/A N/A

DBSERP N/A N/A N/ACatherineM.Reynolds PensionPlan 35.00 2,072,030 2,072,030

DBSERP 35.00 7,765,694 —Jean-FrancoisBrossoit(2) PensionPlan N/A N/A N/A

DBSERP N/A N/A N/ABrianF.Rich(2) PensionPlan N/A N/A N/A

DBSERP N/A N/A N/AGarrickJ.Rochow(3) CashBalancePlan N/A 5,210 —

DBSERP N/A N/A N/A

(1) TheDBSERPprovidesforanadditionalyearofservicecreditforeachyearofservice(“preferenceservice”)untilthetotalofactualandadditionalserviceequals20yearsofservice(duringthefirst10yearsofservice).Afterthislimitisreached,noadditionalpreferenceserviceisprovided.Priortoretirement,Reynoldshadreachedthislimitand,accordingly,wasnoteligibletoaccrueadditionalservicecredits.TheadditionofpreferenceservicetotheDBSERPbenefitformulaprovidesanincreasetotheDBSERPnon-qualifiedbenefitbutdoesnotaffectthePensionPlanbenefit.ThepresentvaluebenefitaugmentationattributabletothepreferenceserviceundertheDBSERPisasfollows:Reynolds$0.

(2) Poppe,Hayes,BrossoitandRichwhowerehiredafterJune30,2003,arenoteligibletoparticipateinthePensionPlanorDBSERP.Seethe2019 All Other Compensation Table andthe2019 Nonqualified Deferred Compensation Table andthecorrespondingfootnotesfordetailsregardingtheplansinwhichPoppe,Hayes,BrossoitandRichparticipate.

(3) RochowqualifiesfortheCashBalancePlansincehewasrehiredafterJune30,2003andbeforeAugust30,2005.RochowisnoteligibletoparticipateintheDBSERP.Seethe2019 All Other Compensation Tableandthe2019 Nonqualified Deferred Compensation Table andthecorrespondingfootnotesfordetailsregardingtheplansinwhichRochowparticipates.

Narrative to 2019 Pension Benefits and DB SERP TablePension Plan

ThePensionPlanisafunded,tax-qualified,noncontributorydefinedbenefitplan.BenefitsunderthePensionPlanarebasedontheemployee’syearsofservice,ageatretirementandthesumofthefivehighestcalendaryearsofbasesalarywhileemployedwithusandouraffiliatedcompaniesdividedby60.BasesalaryexcludesovertimepayandincentiveanddoesnotexceedtheIRCcompensationlimitforaqualifiedpensionplan.Benefitsarepayableafterretirementintheformofanannuityoralumpsum.Thestandardformofbenefitisalifeannuityforanunmarriedemployeeanda50%jointandsurvivorannuityforamarriedemployee,withadditionalformsofjointandsurvivorannuitiesavailableundertheplan.Thebenefitformulaisequalto2.1%forthefirst20yearsofserviceand1.7%forthenext15yearsofservice,toamaximumpercentageof67.5%for35yearsofservicereducedbyaSocialSecurityadjustmentequalto0.5%multipliedby1/12thoftheaverageoftheparticipant’sthreemostrecentyearsofcompensation,uptothemaximumSocialSecuritycoveredcompensationforeachyearofservicecountedintheformula.Totheextentanemployeeexceeds35yearsofserviceunderthePensionPlan,anadditional$20permonthisaddedtotheannuityaftertheadjustmentforSocialSecurityforeachfullyearofserviceabove35.InaccordancewithSECguidelines,thepresentvalueinformationcontainedinthisreportisbasedonASC715assumptionsandisappliedusingtheageatwhichabenefit


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isunreduced.EarlyretirementsubsidiesprovidedbythebenefitformulaofthePensionPlanandtheactualdiscountraterequiredbytheU.S.DepartmentofTreasurymayprovideagreaterpresentvaluetoaparticipantretiringonorafterage55butpriortotheageofanunreducedbenefit.

ThePensionPlanprovidesapre-retirementsurvivorbenefittothespouseofamarriedemployeeoronenamedbeneficiaryofanunmarriedemployee.ThePensionPlanprovidesadisabilityretirementbenefittoemployeeswithatleast15yearsofservicewhoarefoundbytheCorporationtobetotallyandpermanentlydisabledequalto$26.00foreachyearofplanservice,plusanadditional$350permonthiftheparticipantdoesnotqualifyforanySocialSecuritydisabilitybenefit.Theminimummonthlydisabilitybenefitis$450.

ThePensionPlancurrentlylimitstheannualannuitybenefitunderIRCSection415tonomorethan$220,000payableatage65.Priortoretirement,Reynoldswaseligibletoelectearlyretirement.Attheminimumretirementageof55,65%ofthenormalretirementage(age65)benefitisavailable.ThePensionPlanretirementbenefitisunreducedatage62.ThePensionPlanprovidesanadd-onbenefitforlong-termemployeeswhenanemployeeretiresonorafterage58andhas30ormoreyearsofservice.Thisadd-onbenefitisequaltotheparticipant’saccruedretirementincomeasofSeptember1,2000,ifany,multipliedbytheearlyretirementpercentageatthetimeoftheemployee’sretirement,andisaddedtotheretiringemployee’sretirementannuity.ThePresentValueofAccumulatedBenefitcolumnaboveisdeterminedusingtheASC715,Compensation–RetirementBenefitsassumptionsincludingadiscountrate(currently3.37%)andmortality(currentlybasedonthe2019mortalitytablewithprojectedmortalityimprovements.)

Cash Balance PlanTheCashBalancePlanisafunded,tax-qualified,noncontributorydefinedbenefitplan.BenefitsundertheCashBalancePlanarebasedontheemployee’searnings.Itisnotanindividualaccountbutisabenefitpayablefromthegeneralassetsofthepensionfund.RochowistheonlyNEOwithabenefitintheCashBalancePlan.

TheCashBalancePlancreditsanamountequalto5%ofbasepayreceivedfromtheyeartheparticipantbeganearningcreditsthroughanypayperiodbeforeSeptember1,2005toanotionalaccount.ThecreditswereallocatedonDecember31eachyear.Thecreditsdonotapplytoincentivecompensationamounts.TheCashBalancenotionalaccountisalsoincreasedannuallywithaninterestcreditbasedonthe30-yearconstantmaturitytreasurybond.

IfemploymentendsundertheCashBalancePlan,participantsmayelecttoreceivetheirbenefitatthetimetheemploymentterminates,ortheymayelecttodeferbenefitstoalaterdate,butnotlaterthanage701/2.Participantshavethefollowingpaymentelections:(1)amonthlypaymentforlife;(2)amonthlypaymentforlifewitha50%or75%paymenttoaspouseorotherindividualupondeath;or(3)asinglesumequaltoaccountbalance.OncepaymentbeginsundertheCashBalancePlan,nochangescanbemadetoanelection.Ifthechoicewastodeferreceiptofbenefits,interestcreditswillcontinuetobeapplied.

EffectiveSeptember1,2005theCashBalancePlanwasclosedtonewparticipantsandanyexistingparticipantswereeligiblefortheDCCP.

DB SERPTheDBSERPisanunfunded(forpurposesoftheEmployeeRetirementIncomeSecurityActof1974(“ERISA”))non-qualifiedsupplementaldefinedbenefitretirementplanthatprovidesbenefitsbasedonpay,incentivesandaddedservicethatarenotprovidedbythePensionPlan.Inaddition,forofficers,includingNEOs,theDBSERPprovidesforanadditionalyearofservicecreditforeachyearofserviceuntilthetotalofactualandadditionalserviceequal20yearsofserviceandincludesanyawardsundertheAnnualIncentivePlanasearnings.


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ThemaximumbenefitundertheDBSERPisattainedafter35years(includingtheadditionalyearsofservicecredit)andnofurtherservicecreditisprovided.Basedonpriorservice,Reynolds(theonlyparticipatingNEO)hadreachedtheadditionalservicecreditlimitpriortoretirement.BenefitsundertheDBSERPplanbecamepayableafterretirementtoReynoldsintheformofanannuity.ThebenefitformulausedtodeterminetheDBSERPannuityisthesameasthatusedforthePensionPlan;however,theDBSERPdoesnotcontaintheadd-onbenefitdescribedabove.TheDBSERPdoesincludeannualincentivepaymentsaspartofthebenefitcalculation.ThePensionPlanannuityissubtractedfromtheDBSERPannuitytodeterminetheannuitypayablefromtheDBSERP.Althougharabbitrust(atrustthatisestablishedforthebenefitofitsparticipantsexceptthatcreditorsoftheCorporationcanobtaintheassetsofthetrust)hasbeenestablishedbytheCorporationforpurposesofpayingDBSERPbenefits,participantshaveanunsecuredcontractualcommitmentfromCMStopaytheamountsdueunderthisplan.ParticipantswithfivefullyearsofservicewhovoluntarilyterminateservicewithCMSpriortoage55receiveabenefitwithoutinclusionofincentivesandaddedservicestartingthefirstofthemonthonoraftertheir55thbirthdayatalevelequalto38.3%oftheage65benefit.Attheminimumretirementageof55,65%ofthenormalretirementage(age65)benefitisavailable.TheDBSERPbenefitisunreducedatage62.ThePresentValueofAccumulatedBenefitcolumninthetableaboveisdeterminedusingtheASC715assumptionsincludingadiscountrate(currently3.15%)andmortality(currentlybasedonthe2019mortalitytablewithprojectedmortalityimprovements).

2019 Nonqualified Deferred CompensationThefollowingtablecontainsnonqualifieddeferredcompensationinformationfortheNEOsfor2019.

2019 NONQUALIFIED DEFERRED COMPENSATION TABLE (1)

ExecutiveContributionsinLastFY(2)

RegistrantContributionsin

LastFY(3)

AggregateEarningsinLast

FY

AggregateWithdrawals/

DistributionsinLastFY

AggregateBalanceatLastFYE(4)

Name(a) PlanName ($)(b) ($)(c) ($)(d) ($)(e) ($)(f)PatriciaK.Poppe DSSP 111,000 38,800 102,966 — 628,441

DCSERP — 455,020 271,223 — 1,655,385RejjiP.Hayes DSSP 17,000 13,600 11,715 — 81,311

DCSERP — 166,108 54,637 — 379,204CatherineM.Reynolds

DSSP 1,450 1,160 22,264 1,313,910 150,518

Jean-FrancoisBrossoit

DSSP 8,750 7,000 5,406 — 41,148DCSERP — 69,512 22,197 — 168,943

BrianF.Rich DSSP — — — — —DCSERP — 73,664 62,001 — 363,447

GarrickJ.Rochow DSSP 13,000 10,400 16,938 — 98,331DCSERP — 86,410 91,992 — 534,029

(1) Nonqualifieddeferredcompensationplansareplansprovidingfordeferralofcompensationthatdonotsatisfytheminimumcoverage,nondiscriminationandotherrulesthatqualifybroad-basedplansforfavorabletaxtreatmentundertheIRC.ThistableonlyincludestheDSSPandDCSERPanddoesnotincludetheCorporation’scontributionsorrelatedmatchtotheSavingsPlanwhichisatax-qualifieddefinedcontributionplanandshowninthe2019 All Other Compensation Table.

(2) Thiscompensationisalsoreflectedinthe2019 Summary Compensation Table—Salarycolumn.

(3) Thiscompensationisalsoreflectedinthe2019 Summary Compensation Table—AllOtherCompensationcolumn.

(4) ThefollowingDSSPandDCSERPexecutiveandregistrantcontributionswerepreviouslyreportedascompensationintheSummaryCompensationTablesfor2018and2017,respectively:Poppe$493,820/$529,982;Hayes$196,708/$58,900;Reynolds$1,160/$29,700;Brossoit$76,512/N/A;Rich$73,664/$61,427;andRochow$109,810/$92,028.


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Narrative to 2019 Nonqualified Deferred Compensation TableDSSP

Anemployeewhohasbasesalary(excludinganybonus,incentiveorotherpremiumpay)beforedeductionsfortaxesandotherwithholdingsinexcessoftheIRCcompensationlimitiseligibleandmayelecttoparticipateintheDSSP.TheDSSPisanunfunded(forthepurposesofERISA)non-qualifiedtaxdeferreddefinedcontributionplan.TheDSSPisfundedbyCMSwithtrusts.However,participantshaveonlyanunsecuredcontractualcommitmentfromtheCorporationtopaytheamountsdueundertheDSSPandanyfundsareconsideredgeneralassetsoftheCorporationandaresubjecttoclaimsofcreditors.

AparticipantintheDSSPmayelectintheprioryeartodefer0%or5%ofhisorherbasesalarythatexceedstheIRCcompensationlimitandtheCorporationwillmatch100%ofthefirst3%and50%ofthenext2%ofthedeferral,whichisthesamematchingrateastheSavingsPlan(equivalentto4%).Inaddition,aDSSPeligibleparticipantmayelectanadditionaldeferralofupto50%oftheparticipant’sbasesalaryforthecalendaryear.ThisadditionaldeferralisnoteligibleforaCorporationmatch.ThecombinedmaximumtotaloftheDSSPdeferralamountanda5%SavingsPlandeferralis59%ofbasesalary.Atthetimeaparticipantelectsadeferral,adistributionelectionisalsomadeforthisclassyeardeferral.EachclassyeardeferralispayableeitheratacertaindatefiveormoreyearsinthefutureoruponseparationfromservicewiththeCorporationeitherasaseriesofpaymentsover2to15yearsorinalumpsum.TheparticipantdecideshowCorporationcontributionsareinvestedamongabroadarrayofmutualfundsselectedbyusandprovidedbytherecordkeeper.

EarningsintheDSSParebasedonthechangeinmarketvalueofthemutualfundsselectedbytheparticipant.AllNEOsareeligiblefortheDSSP.

DC SERPTheCorporationestablishedaDCSERPforemployeesnoteligibletoparticipateintheDBSERP.UndertheDCSERP,theCorporationprovidesanamountequalto5%,10%or15%(dependingonsalarygrade)ofemployeeregularearningsplusanyawardsundertheAnnualIncentivePlan.FundsequaltotheDCSERParetransferredtoamutualfundfamilyatthetimewecontribute.Earningsorlossesarebasedontherateofreturnofthemutualfundsselectedbytheparticipant.AlthoughtheDCSERPisfundedbytheCorporation,participantshaveanunsecuredcontractualcommitmentfromustopaytheamountsdueunderthisplan.Poppe,Hayes,Brossoit,Rochow,andRicharetheNEOscoveredundertheDCSERP.Brossoit,RichandRochowreceivebenefitsatthe10%levelandPoppeandHayesreceivebenefitsatthe15%level.Contributionsearnedbefore2019arefullyvested.For2019andbeyond,contributionswillbecomevestedoncetheeligibleNEOreachesage55withfiveyearsofparticipationinthePlan.

Potential Payments upon Termination or Change-in-ControlAsnotedaboveunderCompensation Discussion and Analysis, Post-Termination Compensation, Severance and Change-in-Control Benefits, ourexecutivesareeligibletoreceiveseparationandchange-in-controlbenefitsuponaqualifyingterminationofemployment.Thesebenefitsareprovidedthroughtwoseparatetypesofagreements:

• OfficerSeparationAgreements(“OSAgreements”)

• Change-in-ControlAgreements(“CICAgreements”)

Reynolds,whoretiredeffectiveJuly1,2019,hadenteredintoanOSAgreementandCICAgreement.Inconnectionwithherretirement,shedidnotreceiveanypost-terminationbenefitsundertheseagreementsoranyotheragreements;otherthanbenefitsshehadaccruedunderexistingplans,suchasthePensionPlanandDBSERP,andproratedvestingofheroutstandingequityawardsbasedonactualperformanceandserviceduringthevestingperiodperthetermsandconditionsofherequityawards.


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WehaveenteredintoOSAgreementsandCICAgreementswiththeremainingNEOs.TheOSAgreementsprovideforpaymentsandotherbenefitsiftheofficeristerminatedundercircumstancesspecifiedintheOSAgreementunrelatedtoachange-in-control(asdefinedintheCICAgreements).TheCICAgreementsprovideforpaymentsandotherbenefitsonlyiftheNEOisterminatedunderthecircumstancesspecifiedintheCICAgreementswithintwoyearsfollowingachange-in-control.

OS AGREEMENTS. TheOSAgreementsprovideforpaymentsofcertainbenefits,asdescribedinthetablebelow,uponcircumstancesofterminationoftheemploymentoftheNEO.CentraltoanunderstandingoftherightsofeachNEOisanunderstandingofthedefinitionof“Cause.”Forpurposesoftheseagreements:

• WehaveCausetoterminatetheNEOiftheNEOhasengagedinanyofalistofspecifiedactivities,includingwillfulandcontinuedfailuretoperformdutiesconsistentwiththescopeandnatureofhisorherposition,committinganactmateriallydetrimentaltothefinancialconditionand/orgoodwillofCMSoritssubsidiaries,orissubjecttoaspecifiedcriminallegalactionforactivitiesrelatingtoanactoffraud,embezzlement,theft,orotheractconstitutingafelonyinvolvingmoralturpitude.

IftheCorporationdoesnothaveCauseandterminatesaNEOwhohasanOSAgreementforanyreason,theNEOreceivesthebenefitsdescribedinthetablebelow.

Theseagreementsrequire,asapreconditiontothereceiptofthesepayments,thattheNEOsignastandardformofreleaseinwhichheorshewaivesallclaimsthatheorshemighthaveagainsttheCorporationandcertainassociatedindividualsandentities.Theseagreementsalsoincludenon-competeandnon-solicitationprovisionsthatwouldapplyforaperiodof12monthsfollowingtheNEO’sterminationofemploymentandnon-disparagementandconfidentialityprovisionsthatwouldapplyforanunlimitedperiodoftimefollowingtheNEO’sterminationofemployment.Paymentsundertheseagreementsarepayableinalumpsum.

UndertheOSAgreements,tenure-basedrestrictedstockawardswillvestonapro-ratabasisbasedupontheserviceprovidedpriortotheterminationdatewhileperformance-basedrestrictedstockawardswillvestattheendoftheperformanceperiodonapro-ratabasisbasedonserviceprovidedduringtheperformanceperioduptotheterminationdateandactualperformanceoftheCorporation.

CIC AGREEMENTS AND PROVISIONS. TheCICAgreementscontainprovisionsthatprovideforpaymentsintheeventofachange-in-control.Thechange-in-controlprovisions(“CICProvisions”)functioninamannersimilartotheseveranceprovisionsintheOSAgreements,exceptthatNEOsbecomeentitledtobenefitsundertheCICProvisionsonlyintheeventofadoubletriggerconsistingofachange-in-controlandqualifyingterminationofemploymentduringthetwo-yearperiodfollowingthechange-in-control.AspartoftheCICProvisions,aportionoftheseverancepaymentstoaterminatedNEOisconsiderationfortheNEOenteringintoa“non-compete”agreement.

Achange-in-controlofCMSisdefinedintheCICAgreementstomean:

• theconsummationofcertaintypesoftransactions,includingmergersandthesaleofall,orsubstantiallyall,ofourassets;

• theacquisitionbyanypersonorentityofthebeneficialownershipofsecuritiesrepresenting25%or30%(dependingupontheparticularagreement)ormoreofthecombinedvotingpowerofourthenoutstandingvotingsecurities;

• achangeinthecompositionoftheBoardsuchthatindividualswhoattheeffectivedateoftheagreementconstitutedtheBoardandanynewdirectorselectedornominatedbyatleast2/3ofthedirectorswhowereeitherdirectorsattheeffectivedateoftheagreementorweresoelectedornominated,ceaseforanyreasontoconstituteamajorityoftheBoard;or

• theliquidationordistributionofallorsubstantiallyallofourassets.


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ThedefinitionsofCauseandGoodReasonarecentraltoanunderstandingoftheNEO’srightsundertheCICProvisions.UndertheCICProvisions,“Cause”hasthesamemeaningassetforthintheOSAgreementsdiscussedabove.

TheNEOissaidtohaveGoodReasontoterminatehisorheremploymentundertheCICProvisionsiftheassignmenttotheNEOofdutiesismateriallyinconsistentwithhisorherposition(includingstatus,offices,titles,andreportingrequirements),authority,orresponsibilitiesasineffectimmediatelypriortothechange-in-control;theCorporationtakesanyactionwhichresultsinamaterialdiminutionoftheNEO’sposition,authority,duties,orresponsibilitiesasconstitutedimmediatelypriortothechange-in-control(excludinganisolated,insubstantial,andinadvertentactionwhichisremediedbytheCorporationpromptlyafterreceiptofnoticethereofgivenbytheNEO);thereisamaterialreductionintheNEO’sbasesalary,incentiveopportunity,StockPlanawardlevel,benefits,orstatus;orunderothercircumstancesspecifiedinthedefinition,includingtherelocationoftheNEO’sprincipaljoblocationorofficetomorethan35milesfromitslocationatthetimeofentryintotheCICAgreement.PaymentsundertheCICprovisionsarepayableinalumpsum.

ThebenefitstobeprovidedtotheNEOsineachofthosesituationsaredescribedinthetablebelow,whichassumesthattheterminationhadtakenplaceonDecember31,2019,thelastbusinessdayofourmostrecentfiscalyear.DuetoReynolds’sretirementonJuly1,2019,shehasbeenexcludedfromthetable.

TheCICAgreementswitheachNEOdonotcontaintaxgross-upprovisionswithrespecttoIRCSection280GandSection4999excisetaxes.TheCICAgreementscontaina“bestnetbenefit”provisionwhichprovidesthattheCorporation’spaymentstotheNEOcanbereducedtotheextentthatnoportionofthereducedpaymentsshallbesubjecttotheexcisetax,butonlyiftheNEO’snetafter-taxbenefitisgreaterthanhisorhernetafter-taxbenefitwouldhavebeenifsuchreductionwerenotmadeandtheNEOpaidtheexcisetax.

RestrictedstockundertheCICAgreementsincludesdouble-triggervestingprovisions(meaning,bothachange-in-controlandaqualifyingterminationofemploymentmustoccurinorderfortheequitytovest).UndertheCICAgreements,allperformance-basedrestricted-stockawardswillvestonapro-ratabasisbasedupontheserviceprovidedpriortothechange-in-controldatewithanyperformance-basedrestrictionsvestingattargetlevel.

NEOscannotreceivebenefitsunderboththeCICAgreementsandOSAgreements.

RETIREMENT/DISABILITY/DEATH. Upondeath,100%oftherestrictedstockvestswithanyperformance-basedrestrictedstockvestingattargetlevels.Uponretirementordisability,tenure-basedrestrictedstockawardswillvestonapro-ratabasisbasedupontheserviceprovidedpriortoretirementordisabilitywhileperformance-basedrestrictedstockawardsvestattheendoftheperformanceperiodonapro-ratabasisbasedonserviceprovidedduringtheperformanceperiodpriortotheretirementordisabilityandactualperformanceoftheCorporationduringtheperformanceperiod.Inthecaseofretirementordisability,theCompensationCommitteehasthediscretion,inexceptionalcircumstances,towaivetheforfeitureofrestrictedstockawarded.

InconnectionwithReynolds’retirement,Reynoldsreceivedpro-ratavestingoftenure-basedrestrictedstock(value$277,273basedonclosingpriceofCMScommonstockof$57.91pershareonReynolds’retirementdate)andremainseligibletoreceivepro-ratavestingofperformance-basedrestrictedstockbasedonactualperformancethroughtheendoftheperformanceperiod(estimatedvalue$1,576,773basedonclosingpriceofCMScommonstockof$57.91pershareonReynolds’retirementdateandassumingtargetperformanceisachieved).

RETIRED EXECUTIVE SURVIVOR BENEFIT. Theretiredexecutivesurvivorbenefitplanprovidesasurvivorbenefitafterretirementforcertainemployeeswhoheldhigh-levelmanagementorexecutivepositionspriortotheirretirement.Thisplanisasupplementtotheretiredemployees’grouptermlifeinsuranceplan.Theamountofthesurvivorbenefitpayabletoaparticipant’sbeneficiaryupontheparticipant’sdeathequals140%ofannualizedbasesalaryprecedingthedateofretirement.This


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amountisreducedby10%oneveryanniversaryoftheparticipant’sretirementuntilthebenefitamountreachesaminimumof50%oftheinitialbenefitamount.Theamountisfurtherreducedbasedoninsurancepayablebylifeinsuranceplanspurchasedbyus.

TheplanwasclosedtonewparticipantsonJuly1,2011.Aneligibleparticipantmustbeaminimumof60yearsoldatthetimeofretirementorterminationtoqualifyforretiredexecutivesurvivorbenefits.AsofDecember31,2019,ReynoldswastheonlyNEOeligibleforbenefitsunderthisplan.ThevalueofReynolds’benefitwouldrangefromaminimumof$425,100toamaximumof$865,700dependingonthedateofherdeathrelativetoherretirementdate.

Thefollowingtableprovidesinformationconcerningpotentialpaymentsuponterminationorchange-in-controlasofDecember31,2019foreachNEOotherthanReynolds.PleaseseethesummaryaboveforthebenefitsreceivedbyReynoldsinconnectionwithReynolds’retirement.

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE-IN-CONTROL TABLE

PatriciaK.Poppe

RejjiP.Hayes

JeanFrancoisBrossoit

BrianF.Rich

GarrickJ.Rochow

($) ($) ($) ($) ($)Termination Without Cause Payments (1): Oneandone-halftimes2019basesalary $ 1,875,000 $ 930,000 $ 682,500 $ 705,000 $ 810,000Unvestedrestrictedstockawards(2) 13,547,424 3,305,796 1,526,761 1,587,024 2,103,862DCSERPbenefit(3) 189,198 86,009 33,800 35,807 43,391TOTAL $ 15,611,622 $ 4,321,805 $ 2,243,061 $ 2,327,831 $ 2,957,253Change in Control Payments (4): Onetimes2019basesalary $ 1,250,000 $ 620,000 $ 455,000 $ 470,000 $ 540,000Onetimesincentive@100%2019performancetarget 1,500,000 465,000 295,750 305,500 378,000Pro-rataincentivebasedonserviceduringyeartriggered 1,500,000 465,000 295,750 305,500 378,000EstimatedPaymentfor‘Non-compete’Agreement 2,750,000 1,085,000 750,750 775,500 918,000DCSERPbenefit(3) 1,239,198 481,259 213,525 221,457 264,791MedicalCoveragePayment(5) 35,753 35,753 35,753 35,753 35,753Unvestedrestrictedstockawards(2) 15,193,748 3,929,092 1,731,242 1,791,506 2,371,058TOTAL $ 23,468,699 $ 7,081,104 $ 3,777,770 $ 3,905,216 $ 4,885,602Retirement: Pro-rataincentivebasedonserviceperiodinyeartriggered $ 1,500,000 $ 465,000 $ 295,750 $ 305,500 $ 378,000Unvestedrestrictedstockawards(2) 13,547,424 3,305,796 1,526,761 1,587,024 2,103,862TOTAL $ 15,047,424 $ 3,770,796 $ 1,822,511 $ 1,892,524 $ 2,481,862Disability: Pro-rataincentivebasedonserviceperiodinyeartriggered $ 1,500,000 $ 465,000 $ 295,750 $ 305,500 $ 378,000Unvestedrestrictedstockawards(2) 13,547,424 3,305,796 1,526,761 1,587,024 2,103,862TOTAL $ 15,047,424 $ 3,770,796 $ 1,822,511 $ 1,892,524 $ 2,481,862Death: Pro-rataincentivebasedonserviceperiodinyeartriggered $ 1,500,000 $ 465,000 $ 295,750 $ 305,500 $ 378,000Unvestedrestrictedstockawards(2) 20,315,921 5,266,369 2,367,183 2,427,446 3,202,641TOTAL $ 21,815,921 $ 5,731,369 $ 2,662,933 $ 2,732,946 $ 3,580,641

(1) ReflectspaymentsunderOSAgreements.

(2) Basedupontheyear-endclosingpriceofCMScommonstockof$62.84pershare.Theperformance-basedrestrictedstockawardsoutstandingarevaluedbasedontargetlevels.

(3) Poppe’s,Hayes’,Brossoit,’s,Rich’sandRochow’sSERPaccountbalanceswouldfullyvest;theirunvestedbalancesare$189,198;$86,009;$33,800;$35,807;and$43,391respectively.Inaddition,intheeventofachange-in-control,PoppeandHayeswouldreceiveanamountequalto15%oftheirsalaryandincentive-basedchange-in-controlpaymentandBrossoit,RichandRochowwouldreceiveanamountequalto10%oftheirsalaryandincentive-basedchange-in-controlpayments.

(4) PursuanttotheCICAgreementsforPoppe,Hayes,Brossoit,RichandRochow.

(5) PursuanttotheCICAgreement,MedicalCoveragePaymentsincludetwoyearsofcompany-paidmedicalexpenses.


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PROPOSAL 2: APPROVE, ON AN ADVISORY BASIS, EXECUTIVE COMPENSATIONPursuanttoSection14AoftheExchangeAct,weareconductinganadvisory(non-binding)votetoapproveourcompensationprogramsforourNEOsasdisclosedinthisProxyStatementinaccordancewithSECrules.TheCompensationCommitteedidnotmakeanychangestoourexecutivecompensationprogramsincethelastshareholdervote,whichstronglyfavoredtheprogram(approximately98%ofeachofCMSandConsumersvotescastwereaffirmative).Wecontinuetoengagewithourlargeinstitutionalholdersregardingcompensationelements.

AsdescribedindetailunderCompensation Discussion and Analysis inthisProxyStatement,theCorporation’sNEOcompensationprogramisorganizedaroundfourprinciples:(1)alignwithincreasingshareholderandcustomervalue;(2)enabletheCorporationtocompeteforandsecuretopexecutivetalent;(3)rewardmeasurableresults;and(4)befairandcompetitive.

Wehavedesignedourexecutivecompensationelementsbasedonbalanceandsimplicitytoplaceemphasisonconsistent,sustainableandsuperiorabsoluteandrelativeperformance.

• Basesalaryistargetedtoapproximatethemedianofapeergroupmadeupofcompaniesofsimilarbusinessprofileandsize,andtoreflectindividualperformanceandinternalconsiderations.

• AnnualincentiveawardsarebasedontheachievementofAnnualIncentiveEPS(70%ofannualincentive)andAnnualIncentiveOCF(30%ofannualincentive)goals.

• Amajorityofourlong-termincentive(LTI)programisdeliveredthroughperformance-basedrestrictedstockwithtenure-basedrestrictedstockrepresentingaminorityofLTIat25%.Theperformance-basedportioniseligibletovestafterthreeyearsdependentuponourTSRperformanceandLTIEPSgrowth,eachweightedequally,relativetotheCorporation’sPerformancePeerGroup,whilethetenure-basedportionvestsonthethirdanniversaryoftheawarddate.

WeannuallyreviewallelementsoftheCorporation’sexecutivecompensationprogramand,inadditiontocomplyingwithrequiredrules,weadoptcurrentbestpracticeswhereappropriateforourbusinessandshareholders.Asaresult,wehave:

• ClawbacksinplacefortheannualincentiveandLTIawards;

• StockownershipguidelinesforNEOsanddirectors,whichexcludeunvestedperformance-basedrestrictedstockawardswhendeterminingcompliance;

• Change-in-controlagreementsthatrequireadouble-triggerfortheacceleratedvestingofequityawards;

• ApolicythatprohibitshedgingandpledgingoftheCorporation’ssecuritiesbyemployeesanddirectors;

• Annualreviewsofourcompensationandperformancepeergroups;

• RegularbriefingsfromtheCompensationCommittee’sindependentcompensationconsultantregardingkeytrendsandlegislativeandregulatoryupdates;

• Noexcessiveperquisites.Noplanes,cars,clubs,securityorfinancialplanning.Theprincipalperquisiteprovidedtoourexecutivesin2019wasanannualmandatoryphysicalexaminationforeachNEO;

• Nodividendspaidonunvestedperformance-basedrestrictedstockawards.Inlieuofdividends,recipientsreceiveadditionalsharesofrestrictedstockthatvestbasedonthesameperformancemeasuresapplicabletotheunderlyingrestrictedstock;


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• Noemploymentagreements.Ourexecutiveagreementsarelimitedtoseparationandchange-in-controlagreements.BasesalaryandannualincentiveseparationamountsdonotexceedthreetimestheNEO’sbasesalaryandannualincentiveamount,withanaverageoftwotimes;and

• Notaxgross-ups.Noneofourseparationorchange-in-controlagreementscontaintaxgross-ups.

ShareholdersareencouragedtoreadtheCompensationDiscussionandAnalysis,theaccompanyingcompensationtablesandtherelatednarrativedisclosure.

ThisproposalgivesourshareholderstheopportunitytoexpresstheirviewsontheoverallcompensationoftheNEOsandthecompensationphilosophy,policiesandpracticesdisclosedinthisProxyStatement.Forthereasonsdiscussedabove,weareaskingourshareholderstoindicatetheirsupportfortheNEOcompensationbyvotingFORthefollowingresolutionatthe2020AnnualMeeting:

RESOLVED:thatthecompensationpaidtothenamedexecutiveofficers,asdisclosedinthisProxyStatementpursuanttothecompensationdisclosurerulesoftheSecuritiesandExchangeCommission,includingtheCompensationDiscussionandAnalysis,thecompensationtablesandtherelatednarrativedisclosure,isAPPROVED.

Thisvoteisanadvisoryvoteonly,andthereforeitwillnotbindCMSorConsumers,theBoardortheCompensationCommittee.ThevoteresultswillnotcreateorimplyanychangetofiduciarydutiesorcreateorimplyanyadditionalfiduciarydutiesforCMSorConsumersortheBoard.However,wevaluetheopinionsthatourshareholdersexpressintheirvotesandwillconsidertheoutcomeofthevotewhenmakingfutureexecutivecompensationdecisionsastheydeemappropriate.

ConsistentwiththedirectionoftheCMSshareholdersatthe2017AnnualMeetingofShareholdersandtheConsumersshareholdersatthe2018AnnualMeetingofShareholders,theadvisoryvoteonNEOcompensationforCMSandConsumerswillbeheldonanannualbasis.

The CMS and Consumers Boards recommend that shareholders vote to approve the non-binding advisoryproposal to approve the compensation of the named executive officers as disclosed in this Proxy Statementpursuant to the compensation disclosure rules of the Securities and Exchange Commission, including theCompensation Discussion and Analysis, the compensation tables and the related narrative disclosure.


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REPORT OF THE AUDIT COMMITTEETheAuditCommittee,comprisedsolelyofindependentdirectors,assiststheBoardofDirectorsinitsoversightofthe1)integrityoffinancialstatements;2)performanceoftheinternalauditfunctionandindependentauditors;3)independentauditor’squalificationsandindependence;and4)compliancewithapplicablelegalandregulatoryrequirements.TheAuditCommitteehasawrittencharterthatcomplieswithNewYorkStockExchangerequirements.Managementhastheprimaryresponsibilityforthepreparation,presentationandaccuracyoftheconsolidatedfinancialstatementsandthefinancialreportingprocess,includingthesystemsofinternalcontrols.

TheAuditCommitteereviewedanddiscussedwithmanagementtheauditedconsolidatedfinancialstatementssetforthinCMS’andConsumers’2019AnnualReporttoShareholdersandForm10-KfortheyearendedDecember31,2019.TheAuditCommitteealsodiscussedwithPricewaterhouseCoopersLLP(“PwC”),whoareresponsibleforperforminganindependentauditofCMS’andConsumers’financialstatementsandexpressinganopinionontheconformityofthoseauditedconsolidatedfinancialstatementswithUnitedStatesgenerallyacceptedaccountingprinciples,themattersrequiredtobediscussedbyapplicablerequirementsofthePublicCompanyAccountingOversightBoard(“PCAOB”)andSECrules.

TheAuditCommitteehasreceivedareportonthequalitycontrolproceduresofPwC.TheAuditCommitteehasalsodiscussedwithmanagement,theinternalauditorsandPwCthequalityandadequacyofCMS’andConsumers’internalcontrols,withparticularfocusoncompliancewithSection404oftheSarbanes-OxleyActof2002.TheAuditCommitteereviewedwiththeinternalauditorsandPwCtheirauditplansandauditscope.

TheAuditCommitteeisresponsiblefortheappointment,termination,compensationandoversightoftheworkoftheindependentauditor.PwChasservedasCMSandConsumers’independentregisteredpublicaccountantssince2007.Inordertoassurecontinuingauditorindependence,theAuditCommitteeperiodicallyconsiderswhetherthereshouldbearegularrotationoftheindependentregisteredpublicaccountingfirm.Inconjunctionwiththemandatedrotationoftheleadengagementpartner,theAuditCommitteeanditsChairaredirectlyinvolvedintheselectionofPwC’sleadengagementpartner.TheAuditCommitteehasreceivedfromPwCthewrittencommunicationsrequiredbyapplicablerequirementsofthePCAOBregardingPwC’scommunicationswiththeAuditCommitteeconcerningindependenceandhavediscussedwithPwCtheirindependencefromCMSandConsumers.TheAuditCommitteehasdiscussedwithPwCthecompatibilityofnon-auditserviceswiththeauditor’sindependenceandhassatisfiedthemselvesastoPwC’sindependence.

Inrelianceonthereviewanddiscussionsreferredtoabove,theAuditCommitteerecommendedtotheBoardsthattheauditedconsolidatedfinancialstatementsbeincludedinCMS’andConsumers’AnnualReportonForm10-KforthefiscalyearendedDecember31,2019,forfilingwiththeSEC.

AUDITCOMMITTEELauraH.Wright(Chair)DeborahH.ButlerSuzanneF.ShankMyrnaM.SotoJohnG.Sznewajs


CMS Consumers 2019 2018 2019 2018AuditFees $ 5,049,948 $ 5,356,000 $ 4,715,654 $ 4,832,380Audit-Related 4,500 267,470 4,500 266,570TaxFees 3,323 3,470 3,323 3,470AllOtherFees 13,787 17,000 13,787 17,000TotalFees $ 5,071,558 $ 5,643,940 $ 4,737,264 $ 5,119,420

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FEES PAID TO THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMPwCwastheprincipalindependentregisteredpublicaccountingfirmforCMSandConsumersfortheyears2019and2018.Thefollowingtablesetsforththeaggregatefees,includingexpenses,forprofessionalservices,billedbyPwCtoCMS(consolidatedtotalincludingConsumersanditssubsidiaries)andConsumers(includingitssubsidiaries),ineachofthelasttwofiscalyears.

Auditfeesincludefeesassociatedwiththeannualaudit,thereviewsofourquarterlyreportsonForm10-Q,comfortletters,requiredstatutoryaudits,feesrelatedtotheauditofourinternalcontrolsoverfinancialreportingasrequiredbytheSarbanes-OxleyActof2002andotherattestservices.Audit-relatedfeesincludefeesassociatedwithassistancerelatedtoaccountingsystemsandcontrols.Taxfeesincludefeesforassistancewithimplementingaworkflowmanagementtoolfortaxcomplianceandplanning.Allotherfeesarerelatedtobusinessimpactanalysisactivities.

TheAuditCommitteehasadoptedapolicythatrequirespre-approvalforallaudit,audit-related,taxandotherservicesperformedbytheindependentregisteredpublicaccountingfirm.Thepolicyprovidesforpre-approvalbytheAuditCommitteeofspecificallydefinedauditandnon-auditservices.Unlessthespecificservicehasbeenpreviouslypre-approvedwithrespecttothatyear,theAuditCommitteemustapprovethepermittedservicebeforetheindependentregisteredpublicaccountingfirmisengagedtoperformit.TheAuditCommitteehasdelegatedtotheChairoftheAuditCommitteeauthoritytoapprovepermittedservices,providedthattheChairreportsanydecisionstotheAuditCommitteeatitsnextscheduledmeeting.Alloftheservicesperformedbytheprincipalindependentregisteredpublicaccountingfirmwereapprovedinaccordancewiththepolicyin2019.


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PROPOSAL 3: RATIFY THE APPOINTMENT OF INDEPENDENT REGISTERED PUBLICACCOUNTING FIRMTheAuditCommittee’sselectionoftheindependentauditorshallbesubmittedtoourshareholdersfortheirratificationattheAnnualMeetingofShareholders.IfamajorityofsharesvoteddonotratifytheAuditCommittee’sselection,theAuditCommitteewillconsiderourshareholderviewswhenconsideringselectionofadifferentindependentauditororthecontinuedretentionoftheexistingauditorforthatyear.

TheAuditCommitteeisdirectlyresponsiblefortheappointment,compensation,retentionandoversightoftheindependentregisteredpublicaccountingfirm(takingintoaccountthevoteonshareholderratification).TheAuditCommitteehasselectedPwC,independentregisteredpublicaccountingfirm,toaudittheconsolidatedfinancialstatementsfortheyear2020.PwChasservedasourindependentregisteredpublicaccountantssince2007.TheAuditCommitteeisresponsiblefortheauditfeenegotiationsassociatedwiththeretentionofPwC.Inordertoassurecontinuingauditorindependence,theAuditCommitteeperiodicallyconsiderswhetherthereshouldbearegularrotationoftheindependentregisteredpublicaccountingfirm.Inconjunctionwiththemandatedrotationoftheleadengagementpartner,theAuditCommitteeanditsChairaredirectlyinvolvedintheselectionofPwC’sleadengagementpartner.ThemembersoftheAuditCommitteeandtheBoardbelievethatthecontinuedretentionofPwCasindependentregisteredpublicaccountingfirmisinthebestinterestsoftheCorporationanditsshareholders.ArepresentativeofPwCwillbepresentatthe2020AnnualMeetingofShareholdersandwillhaveanopportunitytomakeastatementandrespondtoappropriatequestions.

The CMS and Consumers Boards and their Audit Committees recommend a vote to ratify the appointment ofthe independent registered public accounting firm for 2020.


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PROPOSAL 4: VOTE FOR APPROVAL OF THE 2020 PERFORMANCE INCENTIVE STOCK PLANIntroduction.TheBoardsofCMSandConsumers(“Board”),uponarecommendationoftheirCompensationCommitteeandconditioneduponshareholderapproval,haveapprovedthe2020PerformanceIncentiveStockPlan(the“2020StockPlan”).Acopyofthe2020StockPlanisincludedasAppendixBtothisProxyStatement.

IfapprovedbytheCorporation’sshareholders,the2020StockPlanwillbecomeeffectiveonJune1,2020andreplacetheCorporation’scurrentStockPlan,approvedbyshareholdersinMay2014(the“StockPlan”).AnyexistingawardsundertheStockPlan,willremainineffectinaccordancewithitsterms.NonewawardswillbemadeundertheStockPlanafteritsexpirationonMay31,2020.

Purpose.Thepurposeofthe2020StockPlanistoprovideincentivecompensationtoEligiblePersons(asdefinedinthe2020StockPlan),baseduponsuchEligiblePersons'individualcontributionstothelong-termgrowthandprofitabilityoftheCorporation,andtoencouragesuchEligiblePersonstoidentifywithshareholderconcernsandtheircurrentandcontinuinginterestinthedevelopmentandfinancialsuccessoftheCorporation.BecauseitisexpectedthattheeffortsofOfficers,EmployeesorDirectorsselectedforparticipationinthe2020StockPlanwillhaveasignificantimpactontheresultsoftheCorporation'soperationsinfutureyears,the2020StockPlanisintendedtoassisttheCorporationinattractingandretainingofficers,employeesordirectorsofsuperiorabilityandinmotivatingtheiractivitiesonbehalfoftheCorporation.

Shareholderapprovalofthe2020StockPlanisrequiredundertherulesoftheNYSE.

Highlights of Key Attributes of the 2020 Stock Plan.Includedbelowaresomeofthekeyattributesofthe2020StockPlan:

• 6,500,000sharesofCMScommonstock(“CommonStock”)reservedforissuance;

• Anindependentplanadministratorforofficerawards/grants;

• Nograntsofdiscountedawards;

• Norepricingorrepurchasingofstockoptionsorstockappreciationrights;

• Nopaymentsofdividendsordividendequivalentscanbemadeduringtheperformanceperiodforawardswithperformancecriteria;

• Noexcessivechange-in-controlfeatures;

• Minimum3-yearvestingforofficersorothernon-officeremployeesandone-yearfordirectorsforrestrictedcommonstockandrestrictedcommonstockunitawards,subjecttoacceleratedvestinginthecaseofdeath,disability,retirement,terminationofemploymentorservice;and

• Aclawbackprovision.

Summary of Changes from the Stock Plan to the 2020 Stock Plan.ThefollowingitemsarekeychangesfromtheStockPlantothe2020StockPlan:

• Newten-yearplanwithexpirationonMay31,2030;

• Updateeligibilitytoincludemorerepresentationofourfieldpersonnel;

• Updateforchangesin162(m)provisions;and

• Makeadministrativechanges;

Determination of Authorized Shares.Shareholderapprovalofthe2020StockPlanwillprovidetheCorporationwithflexibilitytograntawardsfromapoolofsharesavailableunderthe2020Stock


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Planforthepurposesofattracting,motivatingandretainingparticipants.Ifthe2020StockPlanisapprovedtheapproximately2,868,702sharesofCommonStockavailable,asofDecember31,2019,forfutureawardsundertheStockPlanwillnolongerbeauthorizedforfuturegrants.Assumingthatthe2020StockPlanisapprovedbytheCorporation’sshareholders,asofJune1,2020,onlythe6,500,000sharesreservedunderthe2020StockPlanwillbeauthorizedforfuturegrants.TheclosingpriceofashareofCommonStockontheNYSEonMarch3,2020was$64.32.

Eachofficer,non-employeedirector,orothernon-officeremployeeoftheCorporationoritssubsidiariesiseligibletoparticipateinthe2020StockPlan.TheCompensationCommitteeselectstheparticipants(exceptinlimitedcircumstanceswheretheCEOhasbeendelegatedthatauthority),determinestheamountofeachawardorgrantandprescribesthetermsandconditionsofeachawardorgrant.AsofDecember31,2019,11non-employeedirectorsandapproximately8,130employeesoftheCorporationanditssubsidiarieswereeligibletoparticipateintheStockPlanandwillbeeligibletoreceiveawardsunderthe2020StockPlanasofJune1,2020.Foreachofthepastfiveyears,allofournon-employeedirectorsandapproximately150employeesreceivedlong-termincentiveawardsundertheStockPlan.

Weareaskingshareholderstoapprovethe2020StockPlan,asitwillallowtheCorporationtheopportunitytoencourageCommonStockownershipbynon-employeedirectors,executivesandotheremployeesandlinktheirfinancialinterestswithothershareholders.Webelievethisproposalenablesustoremaincompetitiveinourabilitytoattract,motivateandretainkeytalentbyprovidingapoolofsharesavailableforawards.TheCorporationbelievesthattherequested6,500,000sharesunderthe2020StockPlanwill,onthebasisofcurrentassumptions,provideadequatesharesforissuanceunderthe2020StockPlanuntilthe2026annualshareholdersmeeting.

Description of the 2020 Stock PlanThefollowingdescriptionofthe2020StockPlanisasummaryandisqualifiedinitsentiretybyreferencetothecompletetextofthe2020StockPlan,whichisattachedasAppendixBtothisProxyStatement.Capitalizedtermsusedbutnotdefinedinthissummarydescriptionhavethemeaningsetforthinthe2020StockPlan.

Term of the 2020 Stock Plan.Ifapprovedbyshareholdersatthe2020AnnualMeeting,awardsmaybegrantedunderthe2020StockPlanforaperiodofuptotenyears,unlessearlierterminatedbytheBoard.The2020StockPlanwillcontinueineffectuntilallmattersrelatingtothepaymentofoutstandingawardsandadministrationofthe2020StockPlanhavebeensettled.

Administration.TheCompensationCommitteewillserveasthePlanAdministratorofthe2020StockPlanandwilladministertheAwardsandAwardDocumentsforOfficersandotherEligiblePersons.TheGovernanceCommitteewillserveasthePlanAdministratorofthe2020StockPlanregardingadministrationoftheAwardsandAwardDocumentsforNon-EmployeeDirectors.Forthepurposesofthissummarydescription,referencesto“Committee”meantheCompensationCommitteeand/ortheGovernanceCommittee,asapplicable.

Maximum Shares of Common Stock Available Under the 2020 Stock Plan and Director Compensation Limitations.The2020StockPlancoversamaximumof6,500,000sharesofCommonStock.The6,500,000sharesofCommonStockauthorizedunderthe2020StockPlanis2.3%oftheCorporation’soutstandingsharesasofDecember31,2019.

ThemaximumsharesawardedorgrantedforanyoneNon-EmployeeDirectorforanyonecalendaryearunderthe2020StockPlan,excludinganyPerformanceUnitsgranted,shallnotexceedthelesserof10,000sharesofCommonStockoravalueof$350,000intheaggregate.Notmorethan10%ofthetotalsharesreservedforgrantorawardunderthe2020StockPlanshallbegrantedorawardedtoNon-EmployeeDirectors.


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AnyshareofCommonStockcoveredbyanAward(orportionofanAward)thatisforfeited,canceledorterminatedorthatexpireswithoutbeingexercisedinwholeorinpart,orthatissettledincashshallagainbeavailableforthegrantofnewAwardsunderthe2020StockPlan.ThenumberofsharesofCommonStockthataretenderedbyaParticipantorwithheldbytheCorporationtopaytheexercisepriceofaStockOptionortosatisfyaParticipant’staxwithholdingobligationsinconnectionwiththeexerciseorsettlementofanAwardandthenumberofsharesofCommonStockcoveredbyastock-settledStockAppreciationRighttotheextentexercisedwillnotbeavailableforthegrantofnewAwardsunderthe2020StockPlan.

Deferral of Payment.TheprovisionsofthePlanregardingpaymentofAwardsshallbesubjecttoandinterpretedinaccordancewith,inallrespects,thedeferralelections,ifany,oftheParticipantmadefromtimetotimeinaccordancewiththeAwardDocument.TheCommitteemayatitsdiscretionimposemandatorydeferralforanOfficerorDirectortocomplywithstockownershiprequirementsoutsideofthe2020StockPlan.

Awards.ThetypesofAwardsthatcanbegrantedunderthe2020StockPlanaresetforthbelow.Awardsaresubjecttothetermsandconditionsofthe2020StockPlanandsuchothertermsandconditionsthatmaybeestablishedbythePlanAdministratorintheAwardDocument.

Stock Options and Stock Appreciation Rights.TheCommitteeshallestablishtheexercisepriceatthetimeanyStockOptionorStockAppreciationRightisgrantedatnotlessthan100%ofthefairmarketvalueoftheCommonStockonthedateonwhichsuchStockOptionorStockAppreciationRightisgranted.StockOptionsandStockAppreciationRightsgrantedunderthe2020StockPlanshallnotsubsequentlybere-pricedbyreducingtheexercisepricethereof,norshallStockOptionsorStockAppreciationRightsgrantedunderthe2020StockPlanbecanceledandreplacedbyasubsequentre-grantunderthePlanofStockOptionsorStockAppreciationRightshavinganexercisepricelowerthantheStockOptionsorStockAppreciationRightssocanceled.

AnyStockOptiongrantedunderthe2020StockPlanmay,atthetimeofsuchgrant,includeaStockAppreciationRight.AStockAppreciationRightgrantedinconjunctionwitharelatedunderlyingStockOptionshallbeexercisableonlyatthetimeandtotheextenttherelatedunderlyingStockOptionisexercisableandonlyifthefairmarketvalueoftheCommonStockexceedstheexercisepriceoftherelatedunderlyingStockOption.AStockAppreciationRightmayalsobegrantedindependentlyofaStockOption.

StockOptionsandStockAppreciationRightsarerestrictedfrombeingexercisedforaperiodofatleastthirty-sixmonthsfromandafterthedateofthegrant,subjecttoacceleratedvestingintheeventofdeath,Disability,Retirement,orterminationofserviceoftheawardrecipient.StockOptionsandStockAppreciationRightsterminateasspecifiedintheAwardDocument,butnolaterthantenyearsafterthedateofgrant.

Restricted Stock, Restricted Stock Units and Unrestricted Common Stock.TheCommitteemayfromtimetotimeawardRestrictedStock,RestrictedStockUnitsorUnrestrictedCommonStocktoanyEligiblePersonithasdesignatedasaParticipantandinaccordancewithsuchrulesastheCommitteemayprescribe.TheCommitteemayalsoawardRestrictedStockorRestrictedStockUnitsconditionedontheattainmentofperformancegoalsdeterminedbytheCommitteeassetforthintheAwardDocumentandsubjecttosuchotherrestrictionsastheCommitteedeemsadvisable.

ThenumberofsharesofCommonStocksubjecttoanUnrestrictedCommonStockAwardshallbedeterminedbytheCommittee.UnrestrictedCommonStockAwardsshallnotbesubjecttoanyRestrictionsorperformancecriteria;provided,however,UnrestrictedCommonStockAwardsshallnotbegrantedtoOfficers.

RestrictedStockandRestrictedStockUnitsshallhavevestingrestrictionsimposedbytheCommitteeforaperiodoftimeofatleastthirty-sixmonthsfromandafterthedateoftheAwardforOfficersandEmployeesand12-monthsforDirectors,subjecttoacceleratedvestingintheeventofdeath,Disability,Retirement,orterminationofserviceoftheawardrecipient.


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SharesofRestrictedStockawardedtoaParticipantunderthe2020StockPlan,whetherornotvestedortransferable,mayhavefulldividendrightsasdeterminedbytheCommitteeandsetforthintheAwardDocument.DividendswithrespecttosharesofRestrictedStocksubjecttoperformance-basedvestingconditionsshallbesubjecttothesamevestingconditionsastheunderlyingsharesofRestrictedStock.

TheAwardDocumentrelatingtoaRestrictedStockUnitAwardwillspecify(i)whethersuchawardmaybesettledinCommonStock,cashoracombinationthereof,and(ii)whethertheParticipantwillbeentitledtoreceiveonacurrentordeferredbasis,dividendequivalents,withrespecttosuchAward.AnydividendequivalentswithrespecttoRestrictedStockUnitsthataresubjecttoperformance-basedvestingconditionswillbesubjecttothesamerestrictionsassuchRestrictedStockUnits.PriortosettlementofaRestrictedStockUnit,theParticipantwillhavenorightsasashareholderoftheCorporation.

Phantom Shares and Performance Units.TheCommitteemayfromtimetotimegrantPhantomShares,thevalueofwhichisdeterminedbyreferencetoashareofCommonStockontermsandconditionsastheCommittee,initssolediscretion,mayfromtimetotimedetermine.EachgrantofPhantomSharesshallspecifythenumberofPhantomSharesgranted,theinitialvalueofsuchPhantomShareswhichshallnotbelessthan100%ofthefairmarketvalueoftheCommonStockasofthedateofgrant,theValuationDates,thenumberofPhantomShareswhoseAppreciationValueshallbedeterminedoneachsuchValuationDate,anyapplicablevestingscheduleforsuchPhantomShares,andanyapplicablelimitationonpaymentforsuchPhantomShares.Subjecttosatisfactionoftheapplicableconditions,theAppreciationValueofaPhantomShareshallbepaidtotheParticipantincashfollowingtheValuationDateapplicabletothePhantomShare.

TheCommitteemay,initssolediscretion,grantPerformanceUnitstoEligiblePersons.EachPerformanceUnitwillhaveaninitialvaluethatisestablishedbytheCommitteeatthetimeofgrantandcreditedtoabookkeepingaccountestablishedfortheParticipant.TheCommitteewillsetperformanceperiodsandobjectivesandothertermsandconditionsofthegrantbaseduponPerformanceCriteria.

Performance Criteria.Underthe2020StockPlan,thevesting,exercisabilityorpaymentofcertainAwardsmaybemadesubjecttothesatisfactionofperformancegoals.TheperformancegoalsapplicabletoaparticularAwardwillbedeterminedbythePlanAdministratoratthetimeofgrant.TheCommitteemayuseoneormoreofthefollowingbusinesscriteria,suchcriteriamaybebasedoncorporate-wideorsubsidiary,division,operatingunitorindividualmeasures:netearnings;operatingearningsorincome;earningsgrowth;netincome;cashflow(includingoperatingcashflow,freecashflow,discountedcashflowreturnoninvestment,andcashflowinexcessofcostofcapital);earningspershare;earningspersharegrowth;stockprice;totalshareholderreturn;absoluteand/orrelativereturnoncommonshareholdersequity;returnonshareholdersequity;returnoncapital;returnonassets;economicvalueadded(incomeinexcessofcostofcapital);independentcustomersatisfactionstudiesorindices;expensereduction;sales;orratioofoperatingexpensestooperatingrevenues.Further,the2020StockPlanmayincorporatecertainoperatingparameterssuchassafety,reliabilityandcustomerservice.Inaddition,theCommitteemayelecttouseanyotherbusinessorindividualcriteria,whetherornotlistedinthe2020StockPlan.TheapplicablePerformanceCriteriamaybeappliedonapre-orpost-taxbasisandmaybeadjustedtoincludeorexcludeobjectivelydeterminablecomponentsofanyPerformanceCriteria,including,withoutlimitation,specialchargessuchasrestructuringorimpairmentcharges,debtrefinancingcosts,extraordinaryornoncashitems,unusual,nonrecurringorone-timeeventsaffectingtheCorporationoritsfinancialstatementsorchangesinlaworaccountingprinciples(eachan“AdjustmentEvent”).InthesolediscretionoftheCommitteetheCommitteemayamendoradjustthePerformanceCriteriaorothertermsandconditionsofanoutstandingAwardinrecognitionofanyAdjustmentEvent.


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Change in Control.IntheeventofaChangeinControlandaqualifyingterminationasdefinedunderanywrittenemploymentcontractoragreementbetweentheCorporationandanOfficer,Awardsgrantedunderthe2020StockPlanshallvesttotheextent,ifany,providedforinthewrittenemploymentagreementorcontractorseparatecontractualarrangementapplicabletotheAward.ForaParticipantnotcoveredbyawrittenemploymentcontractoragreement,exceptasotherwiseprovidedbytheCommittee,intheeventofaChangeinControlandanEligibleTerminationunderthe2020StockPlan(generallyaterminationnotinvolvingdeath,Disability,RetirementorCause),anyportionofanAwardsubjecttotimebasedonlyrestrictionswillvestfullyandanAwardsubjecttoaperformance-basedrestrictionwillvestonaproratabasistotheChangeinControldateusingthetargetnumberofsharesasthebasisfortheproration.

Clawback.If,duetoarestatementoftheCorporation’soranAffiliate’spubliclydisclosedfinancialstatementsorotherwise,anEligiblePersonissubjecttoanobligationtomakearepaymentorreturnofbenefitstotheCorporationoranAffiliatepursuanttoaclawbackprovisioncontainedinthe2020StockPlanoranyothercompensationorbenefitplanoftheCorporation(a“benefitplanclawbackprovision”),theBoardorCommitteemaydeterminethatitshallbeapreconditiontothevestingofanyunvestedAwardoftheEligiblePersonunderthe2020StockPlan,thattheEligiblePersonfullyrepayorreturntotheCorporationanyamountsowingundersuchbenefitplanclawbackprovision.AnyandallAwardsunderthe2020StockPlanarefurthersubjectto(i)anyprovisionoflawwhichmayrequiretheEligiblePersontoforfeitorreturnanybenefitsprovidedunderthe2020StockPlan,intheeventofarestatementoftheCorporation’soranAffiliate’spubliclydisclosedaccountingstatementsorotherillegalact,or(ii)anyclawbackpolicyoftheCorporation.TheCommitteemayalso,atitsdiscretion,requireareturnofabenefitorawardintheeventofamistakeoraccountingerrorinthecalculationofsuchbenefitoraward.

Amendment and Termination of the 2020 Stock Plan.TheBoardreservestherightatanytimetoamend,suspendorterminatethe2020StockPlaninwholeorinpartandforanyreasonandwithouttheconsentofanyParticipantorBeneficiary;provided,thatnosuchamendmentshall:

• ChangetheexercisepriceoradverselyaffectanyStockOptionorStockAppreciationRightoutstandingunderthe2020StockPlanontheeffectivedateofsuchamendmentortermination;

• AdverselyaffectanyAwardthenineffectorrightstoreceiveanyamounttowhichParticipantsorBeneficiarieshavebecomeentitledpriortosuchamendment;or

• UnlessapprovedbytheShareholders,increasetheaggregatenumberofsharesofCommonStockreservedforawardorgrantunderthe2020StockPlan,changethegroupofEligiblePersonsorincreasethecompensationlimitsasspecifiedunderthe2020StockPlan.

Tax Withholding.EachvestingandpaymentofCommonStockandeachvestingandpaymentwithrespecttoPhantomSharesorPerformanceUnitsunderthe2020StockPlanshallbemadesubjecttofederal,stateandlocaltaxwithholdingrequirements.Forthispurpose,theCommitteemayprovideforthewithholdingofsharesofCommonStockorallowaParticipanttopaytotheCorporationfundssufficienttosatisfysuchwithholdingrequirements.TheCorporationshallappropriatelyreducetheamountofstockorcashtobepaidtoaParticipanttocoverrequiredtaxwithholdinginconnectionwiththeexerciseofaNonqualifiedOptionorStockAppreciationRightorasaresultofadisqualifyingdispositionofstockacquireduponexerciseofanIncentiveOption.

New Plan Benefits.ThegrantofAwardsunderthe2020StockPlanisintheCommittee’sdiscretionand,accordingly,itisnotpossibletodetermineamountsthatwillbereceivedthereunderinthefuture.ForawardsundertheStockPlanduring2019foreachoftheNon-EmployeeDirectorsandNEOs,seethe“2019COMPENSATIONTABLES”presentedearlierinthisProxyStatement.


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U.S. Federal Taxation of Awards.ThefollowingisabriefsummaryofcertainUnitedStatesfederalincometaxconsequencesgenerallyarisingwithrespecttoAwardsunderthe2020StockPlan.ThisdiscussiondoesnotaddressallaspectsoftheUnitedStatesfederalincometaxconsequencesofparticipatinginthe2020StockPlanthatmayberelevanttoparticipantsinlightoftheirpersonalinvestmentortaxcircumstancesanddoesnotdiscussanystate,localornon-UnitedStatestaxconsequencesofparticipatinginthe2020StockPlan.

Stock Options.AParticipantwillnotrecognizetaxableincomeatthetimeaStockOptionisgrantedandtheCorporationwillnotbeentitledtoataxdeductionatthattime.AParticipantwillrecognizecompensationtaxableasordinaryincome(andsubjecttoincometaxwithholding,inthecaseofanemployee)uponexerciseofaNonqualifiedOptionequaltotheexcessofthefairmarketvalueofthesharespurchasedovertheirexerciseprice,andtheCorporationwillbeentitledtoacorrespondingdeduction,excepttotheextentthedeductionlimitsofIRCSection162(m)apply.AParticipantwillnotrecognizeincome(exceptforpurposesofthealternativeminimumtax)uponexerciseofanIncentiveOption.IfthesharesacquiredbyexerciseofanIncentiveOptionareheldforatleasttwoyearsfromthedatetheIncentiveOptionwasgrantedandoneyearfromthedateitwasexercised,anygainorlossarisingfromasubsequentdispositionofthoseshareswillbetaxedaslong-termcapitalgainorloss,andtheCorporationwillnotbeentitledtoanydeduction.If,however,thosesharesaredisposedofwithintheabove-describedperiod,thenintheyearofthatdisposition,theParticipantwillrecognizecompensationtaxableasordinaryincomeequaltothelesserof(1)theamountrealizeduponthatdisposition,and(2)theexcessofthefairmarketvalueofthosesharesonthedateofexerciseovertheexerciseprice,andtheCorporationwillbeentitledtoacorrespondingdeduction,excepttotheextentthedeductionlimitsofIRCSection162(m)apply.

Stock Appreciation Rights.AParticipantwillnotrecognizetaxableincomeatthetimeStockAppreciationRightsaregrantedandtheCorporationwillnotbeentitledtoataxdeductionatthattime.Uponexercise,theParticipantwillrecognizecompensationtaxableasordinaryincome(andsubjecttoincometaxwithholding,inthecaseofanemployee)inanamountequaltothefairmarketvalueofanysharesandtheamountofanycashdelivered.ThisamountwillbedeductiblebytheCorporationascompensationexpense,excepttotheextentthedeductionlimitsofIRCSection162(m)apply.

Restricted Stock.AParticipantwillnotrecognizetaxableincomeatthetimeRestrictedStockisawardedandtheCorporationwillnotbeentitledtoataxdeductionatthattime,unlesstheParticipantmakesanelectiontobetaxedatthattime.Ifsuchelectionismade,theParticipantwillrecognizecompensationtaxableasordinaryincome(andsubjecttoincometaxwithholdinginthecaseofanemployee)atthetimeofgrantinanamountequaltotheexcessofthefairmarketvalueforthesharesatsuchtimeovertheamount,ifany,paidforthoseshares.Ifsuchelectionisnotmade,theParticipantwillrecognizecompensationtaxableasordinaryincome(andsubjecttoincometaxwithholdinginthecaseofanemployee)atthetimetherestrictionsconstitutingasubstantialriskofforfeiturelapseinanamountequaltotheexcessofthefairmarketvalueofthesharesatsuchtimeovertheamount,ifany,paidforthoseshares.Theamountofordinaryincomerecognizedbymakingtheabove-describedelectionoruponthelapseofsuchrestrictionsisdeductiblebytheCorporationascompensationexpense,excepttotheextentthedeductionlimitsofIRCSection162(m)apply.Inaddition,aParticipantreceivingdividendswithrespecttoRestrictedStockforwhichtheabove-describedelectionhasnotbeenmadeandpriortothetimesuchrestrictionslapsewillrecognizecompensationtaxableasordinaryincome(andsubjecttoincometaxwithholding,inthecaseofanemployee),ratherthandividendincome,inanamountequaltothedividendspaidandtheCorporationwillbeentitledtoacorrespondingdeduction.

Restricted Stock Units.AParticipantwillnotrecognizetaxableincomeatthetimeaRestrictedStockUnitisgrantedandtheCorporationwillnotbeentitledtoataxdeductionatthattime.UponthesettlementofRestrictedStockUnits,theParticipantwillrecognizecompensationtaxableasordinaryincome(andsubjecttoincometaxwithholding,inthecaseofan


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employee)inanamountequaltothefairmarketvalueofanysharesdeliveredandtheamountofcashpaidbytheCorporation.ThisamountisdeductiblebytheCorporationascompensationexpense,excepttotheextentthedeductionlimitsofIRCSection162(m)apply.

Unrestricted Common Stock.TheParticipantwillrecognizecompensationtaxableasordinaryincome(andsubjecttoincometaxwithholding,inthecaseofanemployee)atthetimeUnrestrictedCommonStockisgrantedand,inanamount,equaltothefairmarketvalueofthesharesgranted.ThisamountisdeductiblebytheCorporationascompensationexpense,excepttotheextentthedeductionlimitsofIRCSection162(m)apply.

Phantom Shares and Performance Unit Awards.AParticipantwillnotrecognizetaxableincomeatthetimePhantomSharesorPerformanceUnitsaregrantedandtheCorporationwillnotbeentitledtoataxdeductionatthattime.UponthesettlementofPhantomSharesorPerformanceUnits,theParticipantwillrecognizecompensationtaxableasordinaryincome(andsubjecttoincometaxwithholding,inthecaseofanemployee)inanamountequaltothefairmarketvalueofanysharesdeliveredandtheamountofcashpaidbytheCorporation.ThisamountisdeductiblebytheCorporationascompensationexpense,excepttotheextentthedeductionlimitsofIRCSection162(m)apply.

EQUITYCOMPENSATIONPLANINFORMATION

InformationasofDecember31,2019concerningcompensationplansunderwhichequitysecuritiesareauthorizedforissuanceisasfollows:

">NumberofSecuritiestobe

IssueduponExerciseofOutstandingOptions,WarrantsandRights

">Weighted-AverageExercisePriceof

OutstandingOptions,

WarrantsandRights

">NumberofSecuritiesRemainingAvailableforFutureIssuanceunderEquityCompensationPlans(Excluding

SecuritiesReflectedinColumn(a))

(a) (b) (c)Equitycompensationplansapprovedbysecurityholders 0 N.A. 3,258,000(1)

(1) Amountincludesforfeituredsharesaddedbacktooutstandingavailableshares.

The CMS and Consumers Boards recommend that shareholders vote to approve the 2020 PerformanceIncentive Stock Plan.


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PROPOSAL 5: VOTE ON A SHAREHOLDER PROPOSAL RELATING TO POLITICAL CONTRIBUTIONS DISCLOSURE

To Be Voted On By CMS Shareholders OnlyWehavebeennotifiedthatshareholderproponentsintendtopresentaproposalforconsiderationattheCMSAnnualMeeting.Theshareholderproposalandsupportingstatementappearbelow,andarepresentedassubmittedtoCMS.TheCMS Board has recommended a vote against this proposal.TheCMSresponseissetforthimmediatelyfollowingtheproposal.Thename,addressandshareholdingsoftheshareholderproponentswillbesuppliedtoashareholderpromptlyuponrequest.

Shareholder ProposalResolved, thattheshareholdersofCMSEnergyCorporation(“CMS”or“Company”)herebyrequestthattheCompanyprovideareport,updatedsemiannually,disclosingtheCompany's:

1. Policiesandproceduresformaking,withcorporatefundsorassets,contributionsandexpenditures(directorindirect)to(a)participateorinterveneinanycampaignonbehalfof(orinoppositionto)anycandidateforpublicoffice,or(b)influencethegeneralpublic,oranysegmentthereof,withrespecttoanelectionorreferendum.

2. Monetaryandnon-monetarycontributionsandexpenditures(directandindirect)usedinthemannerdescribedinsection1above,including:

a. Theidentityoftherecipientaswellastheamountpaidtoeach;and

b. Thetitle(s)oftheperson(s)intheCompanyresponsiblefordecision-making.

ThereportshallbepresentedtotheboardofdirectorsorrelevantboardcommitteeandpostedontheCompany'swebsitewithin12monthsfromthedateoftheannualmeeting.Thisproposaldoesnotencompasslobbyingspending.

Supporting StatementAslong-termshareholdersofCMS,wesupporttransparencyandaccountabilityincorporateelectoralspending.Disclosureisinthebestinterestofthecompanyanditsshareholders.TheSupremeCourtrecognizedthisinits2010Citizens Uniteddecision,whichsaid,“[D]isclosurepermitscitizensandshareholderstoreacttothespeechofcorporateentitiesinaproperway.Thistransparencyenablestheelectoratetomakeinformeddecisionsandgiveproperweighttodifferentspeakersandmessages.”

PubliclyavailablerecordsshowCMShascontributedatleast$12.7millionincorporatefundssincethe2010electioncycle(CQMoneyLine:http://moneyline.cq.com;NationalInstituteonMoneyinStatePolitics:http://www.followthemoney.org).

WeacknowledgethatCMSpubliclydisclosesapolicyoncorporatepoliticalspendinganditspaymentstotradeassociationsthatmaybeusedforelection-relatedactivities.WebelievethisisdeficientbecauseCMSdoesnotdisclosecontributionstoentitiesorganizedandoperatingundersections527and501(c)(4)oftheInternalRevenueCodethatcouldbeusedforelection-relatedpurposes.

TheCompany'sBoardandshareholdersneedcomprehensivedisclosuretofullyevaluatetheuseofcorporateassetsinelections.ThiswouldbringourCompanyinlinewithagrowingnumberofleadingpeercompanies,includingAmerenCorp.,EdisonInternational,NobleEnergyInc.,andSempraEnergy,whichpresentthisinformationontheirwebsites.Weurgeyoursupportforthiscriticalgovernancereform.


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CMS Board of Directors’ Recommendation Against and Statement of OppositionSubstantiallythesameproposalhasbeensubmittedineachofourAnnualMeetingsforthelastthreeyearsandtheBoardopposedtheproposaleachtime.Sincetheproposalwasfirstsubmittedin2017,ithasneverbeenapprovedbyshareholders.TheCompanymadeitspoliticalcontributioninformationanddisclosuresonourwebsitemoreeasilyaccessiblein2019.TheBoardcontinuestoopposethisshareholderproposalandbelievesitsadoptionisunnecessaryandwouldcauseCMStoincurunduecostsandadministrativeburdenswithoutcommensuratebenefittoourstakeholders,includingshareholders,forthefollowingreasons:

1. TherequestisnotinthebestinterestsofCMSoritsshareholders.

2. TherequestisduplicativeofCMS’robustgovernanceandoversightpractices.

3. Therequestwouldnotprovideshareholderswithanymoremeaningfulinformationthanisalreadypubliclyreported.

A guiding principle of CMS’ political spending strategy is to optimize engagement with stakeholders andcreate long-term shareholder value.CMShasalongtraditionasaresponsiblecorporatecitizenandiscommittedtomaintainingthehighestethicalstandardswhenitengagesinpoliticalactivity.TheBoardbelievesCMShasaresponsibilitytoshareholdersandcustomerstoconstructivelyparticipateinthepoliticalprocesstofurtherthebestinterestsofourshareholdersandcustomers.TheBoardbelievesthatitisimportantforustosupportthelegislativeprocessbyparticipatinginpoliticalactivitywhenitisconsistentwithCMS’businessstrategyandaspermittedbylaw.TheBoardsupportsmanyoftheobjectivesexpressedintheshareholderproposal,however,theBoardbelievesthatthelevelofspecificdisclosurerequestedbytheproposalcouldhaveunintendedconsequencesandcouldimpactCMS’abilitytopursueitspurpose:WorldClassPerformanceDeliveringHometownService.

CMS has strong governance and accountability surrounding political spending and upholds the highestlevel of board oversight.TheBoardoverseesourpoliticalengagementpolicies,practicesandcontrols.ThisoversightalongwiththeBoard’salignmentwithourcurrentdisclosurestandardsprovidethenecessaryaccountabilitytoensurethatpoliticalactivitiesareconductedinthebestinterestofshareownersandotherconstituents.ThroughBoardoversight,CMShasmaintainedarigorouscomplianceprocesstoensurethatitspoliticalactivitiesarelawful,properlydisclosedandalignwithourCodeofConduct.InadditiontocomplyingwithCMS’politicalengagementpolicies,politicalcontributionsarealsosubjecttofederal,stateandlocalregulation.Aswithallofourbusinessactivities,CMSiscommittedtocomplyingwithalllawsandregulationsapplicabletoourpoliticalparticipationactivities.

Significant disclosure regarding CMS’ political activities and related policies is already publicly available.CMS’politicalengagementpolicies,programsandpractices,includingthegovernanceanddecision-makingprocessforcorporatepoliticalcontributions,aredescribedindetailonourwebsiteathttps://www.cmsenergy.com/corporate-governance/political-engagement.Requiredcontributioninformationcanalsobefoundonvariousstateandfederalwebsitesandareavailablethroughlinksonourwebsite.Wemaintainapoliticalactioncommittee(“PAC”)fundedbyemployeecontributions(notcorporatecontributions)andallPACcontributionsarepubliclydisclosed.Wealsoparticipateintradeassociationsfortheirexpertiseandinsightsonissuesimportanttoourindustry.Theseassociationsmayparticipateinthepoliticalprocessfromtimetotime.Wedonotjointradeassociationstoadvancepoliticalpurposes,andourmembershipdoesnotrepresentouragreementwithallofthetradeassociations’positionsorviews,nordowecontroltheirpoliticalactivityinanyway.Nonetheless,CMSdisclosesonourwebsitetradeassociationpaymentswhentheyexceed$25,000andwhenthetradeassociationusesaportionofthemoneyforfederallobbyingactivities.


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Insummary,theBoardbelievesourthoughtfulpoliticalstrategy,stronggovernanceandBoardoversight,andsignificantpublicdisclosureappropriatelyaddresstheconcernscitedintheshareholderproposal.Asaresult,theBoarddoesnotbelieveadditionaldisclosureiswarrantedatthistimeandtheproductionofanadditionalreportasrequestedwouldbeanunnecessaryandimprudentuseofCMS’timeandresources.The CMS Board recommends a vote AGAINST the shareholder proposal relating to political contributionsdisclosure.


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2021 Proxy Statement InformationUnderSECrules,ifashareholderwishestosubmitaproposalforpossibleinclusioninour2021ProxyStatementpursuanttoRule14a-8oftheExchangeAct,wemustreceiveitonorbeforeNovember19,2020.

CMSandConsumers’BylawsprovidethatinorderforashareholdertoproposebusinessornominatepersonsforelectiontotheBoardatanannualmeetingthatwillnotbeincludedintheproxystatementforthatannualmeeting,writtennoticecontainingtheinformationrequiredbyourBylawsmustbedeliveredtotheCorporateSecretarynolaterthan60daysnorearlierthan90daysbeforetheanniversaryoftheprioryear’sannualmeeting,thatis,afterJanuary31,2021butnolaterthanMarch2,2021forthe2021AnnualMeeting.AnymattermustcomplywithourBylaws.

CMSBylawsalsopermitashareholder,oragroupofupto20shareholders,whohaveownedcontinuouslyforatleastthreeyearsasignificantamountoftheoutstandingsharesofcommonstockoftheCorporation(atleast3%)tosubmitDirectornominees(notgreaterthantwoor20%oftheBoard)forinclusioninitsproxystatementiftheshareholder(s)andthenominee(s)satisfytherequirementsinCMS’Bylaws.NoticeofproxyaccessDirectornomineesmustbereceivedbyCMS’CorporateSecretarynolessthan120daysnormorethan150dayspriortotheanniversaryofthedatetheCorporationmaileditsproxystatementfortheprioryear’sannualmeeting,thatisafterOctober20,2020butnolaterthanNovember19,2020forthe2021AnnualMeeting.

Shareholderproposalsandnominationsshouldbeaddressedto:CorporateSecretary,OneEnergyPlaza,Jackson,Michigan49201.


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GENERAL INFORMATIONWhat are the Proxy Materials?

TheProxyMaterialsinclude:

• ThisProxyStatement;and

• TheAnnualReporttoShareholders,whichincludestheForm10-KwithourconsolidatedfinancialstatementsandaccompanyingnotesfortheyearendedDecember31,2019.

IfyoureceivedtheProxyMaterialsbymail,theyalsoincludeaproxycardorvoterinstructionformforuseinconnectionwiththe2020AnnualMeeting.WearereleasingtheseProxyMaterialstoshareholdersonoraboutMarch19,2020.

What matters are up for a vote at the CMS Annual Meeting, how are they counted and what are theirrequirements?

Thetablebelowshowsthevotingoptions,votingrequirementandeffectofabstentionsandBrokerNon-VotesforeachproposaltobepresentedattheCMSAnnualMeeting.

Proposal VotingOptions VoteRequiredtobeApproved EffectofAbstentions(1) Effectof“BrokerNon-Votes”(1)1. ElectDirectorNominees

NamedinthisProxyStatementtotheBoardofDirectors

For,Against,Abstain

AnomineewillbeelectedwithapprovalfromamajorityofthevotescastbyholdersofsharespresentinpersonorrepresentedbyproxyattheAnnualMeetingandentitledtovote

NoEffect NoEffect

2. Approve,onanAdvisoryBasis,ExecutiveCompensation

For,Against,Abstain

Majorityofthevotescastbyholdersofsharesentitledtovote

NoEffect NoEffect

3. RatifyIndependentRegisteredPublicAccountingFirm

For,Against,Abstain


NoEffect Counted(2)

4. Approvethe2020PerformanceIncentiveStockPlan

For,Against,Abstain


NoEffect NoEffect

5. VoteonaShareholderProposalRelatingtoPoliticalContributionsDisclosure

For,Against,Abstain


NoEffect NoEffect

(1) Abstentionsandbrokerdiscretionaryvotesarecountedtowardestablishingaquorum.

(2) Thisisconsideredtobearoutinematterand,therefore,ifyouholdyoursharesinstreetnameanddonotprovidevotinginstructionstothebroker,bankorothernomineethatholdsyourshares,thenomineehasdiscretionaryauthoritytovoteonthisProposal.ThisisnotthecaseforanyoftheotherProposalssincetheyareconsideredtobe“non-routine”matters.

WearenotawareofanyothermatterstobepresentedattheCMSAnnualMeeting.However,ifanyothermatters(includingmattersincidenttotheconductofthemeeting)areproperlypresentedatthemeeting,itisintendedthattheholdersoftheproxieswillvoteintheirdiscretion.


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What matters are up for a vote at the Consumers Annual Meeting, how are they counted and what are theirrequirements?

Thetablebelowshowsthevotingoptions,votingrequirementandeffectofabstentionsandBrokerNon-VotesforeachproposaltobepresentedattheConsumersAnnualMeeting.

Proposal VotingOptions VoteRequiredtobeApproved EffectofAbstentions(1) Effectof“BrokerNon-Votes”(1)1. ElectDirectorNomineesNamed

inthisProxyStatementtotheBoardofDirectors

For,Against,Abstain

Anomineewillbeelectedwithapprovalfromamajorityofthevotescastbyholdersofsharesentitledtovote(2)

NoEffect NoEffect

2. Approve,onanAdvisoryBasis,ExecutiveCompensation

For,Against,Abstain


NoEffect NoEffect

3. RatifyIndependentRegisteredPublicAccountingFirm

For,Against,Abstain


NoEffect Counted(3)

4. Approvethe2020PerformanceIncentiveStockPlan

For,Against,Abstain


NoEffect NoEffect

(1) Abstentionsandbrokerdiscretionaryvotesarecountedtowardestablishingaquorum.

(2) HoldersofConsumers’preferredandcommonstockareentitledtoonevoteforeachshareandshareholdershavecumulativevotingrightsfortheelectionofdirectors.Pleasesee“Whoisentitledtovote?”below.

(3) Thisisconsideredtobearoutinematterand,therefore,ifyouholdyoursharesinstreetnameanddonotprovidevotinginstructionstothebroker,bankorothernomineethatholdsyourshares,thenomineehasdiscretionaryauthoritytovoteonthisProposal.ThisisnotthecaseforanyoftheotherProposalssincetheyareconsideredtobe“non-routine”matters.

WearenotawareofanyothermatterstobepresentedattheConsumersAnnualMeeting.However,ifanyothermatters(includingmattersincidenttotheconductofthemeeting)areproperlypresentedatthemeeting,itisintendedthattheholdersoftheproxieswillvoteintheirdiscretion.

Why did I receive a Notice of Internet Availability of Proxy Materials?

ToreducetheenvironmentalimpactofourAnnualMeeting,weareprovidingtheProxyMaterialsovertheInternet.Asaresult,wearesendingmanyofourshareholdersaNoticeofInternetAvailabilityofProxyMaterials(“NoticeofAvailability”)insteadofapapercopyoftheProxyMaterials.AllshareholdersreceivingtheNoticeofAvailabilitymayaccesstheProxyMaterialsovertheInternetandrequestapapercopybymail.InstructionsonhowtoaccesstheProxyMaterials,voteonlineandrequestapapercopycanbefoundintheNoticeofAvailability.TheNoticeofAvailabilityalsocontainsinstructionsonhowtorequestdeliveryofProxyMaterialsinpaperformorelectronicallyonanongoingbasis.

How can I access the Proxy Materials electronically or sign up for electronic delivery?

AllShareholderscanview,searchandprinttheProxyMaterialsatwww.cmsenergy.com/investor-relations.

IfyouareashareholderofrecordandyoureceivedprintedProxyMaterials,youmayelecttoreceivefutureProxyMaterialselectronically.Todosoyoumustenrollonlineathttps://materials.proxyvote.com/125896forCMSandhttps://materials.proxyvote.com/210518forConsumers.IfyouconsenttoreceiveProxyMaterialselectronically,youwillreceiveane-mailnotificationwhentheybecomeavailable.Yourenrollmentwillbeeffectiveuntilrevoked.

Thiselectronicoptionallowsyouto:

• ReducetheenvironmentalimpactofourAnnualMeeting;

• GainfasteraccesstoProxyMaterials;

• Reducetheamountofmailyoureceive;and

• HelpreducethecostsofourAnnualMeeting.


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Ifyoursharesareheldinstreetnameyoushouldcontactyourbrokeragefirm,bankorothernomineeandinquireabouttheirelectronicdeliveryoptions.

Who is entitled to vote?

Shareholdersasofthecloseofbusinessontherecorddate,March3,2020,areentitledtovoteattheAnnualMeetings.Asoftherecorddate,CMS’outstandingsecuritiesentitledtovoteconsistedof284,208,012sharesofCMScommonstock.EachshareisentitledtoonevoteoneachmatterpresentedattheCMSAnnualMeeting.

Asoftherecorddate,Consumers’outstandingsecuritiesentitledtovoteconsistedof84,108,789sharesofsharesofcommonstockheldbyCMSand373,148sharesofpreferredstockheldbythepublic.HoldersofConsumers’preferredandcommonstockareentitledtoonevoteforeachshareandshareholdershavecumulativevotingrightsfortheelectionofdirectors.Thatis,holdersofpreferredandcommonsharesareentitledtocastasmanyvotesasequalthenumberofsharesheldmultipliedbythenumberofdirectorstobeelected,andtheymaycastallofsuchvotesforasinglenomineeordistributethemamonganytwoormorenomineesastheychoose.

Yourconfidentialvoteisreceivedandtabulatedbyanindependentinspectorofelection.Yourvotewillnotbedisclosedexceptasrequiredbylaworinotherlimitedcircumstances.

What is the difference between a shareholder of record and a “street name” holder?

Ifyoursharesareregistereddirectlyinyourname,youareconsideredourshareholderofrecordforthoseshares.

Ifyoursharesareheldinastockbrokerageaccountorbyabankorothernominee,youareconsideredthebeneficialownerofthesharesandyoursharesaresaidtobeheldin“streetname.”Streetnameholdersgenerallycannotvotetheirsharesdirectlyandmustinsteadinstructthebrokeragefirm,bankorothernomineehowtovoteusingthemethoddescribedunder“HowdoIvote?”below.

How do I vote?

YoucanensurethatyoursharesarevotedattheAnnualMeetingbysubmittingyourvotebytelephoneorInternet(theinstructionsarefoundonyourproxycard,votinginstructionformorNoticeofAvailability).IfyoureceivedyourProxyMaterialsbymail,youcancompleteandreturnyourproxycardorvotinginstructionformbymail.Evenifyouvotebyoneofthesemethods,youcanstillattendandvoteattheAnnualMeeting.

Ifyoursharesareheldinstreetname,youmustvoteyoursharesinthemannerprescribedbyyourbrokeragefirm,bankorothernominee.Yourbrokeragefirm,bankorothernomineeshouldprovideavotinginstructionformforyoutouseindirectingithowtovoteyourshares.IfyouwanttovoteyoursharesinpersonattheAnnualMeeting,youmustobtainalegalproxyfromyourbrokeragefirm,bankorothernomineeinadvanceoftheAnnualMeetingandbringitwithyou.

What if I do not indicate my voting preference on my proxy?

Ifyoursharesarevotedbyproxy,theshareswillbevotedasyouinstruct.Ifyousignandproperlysubmityourproxy,butdonotgiveanyspecificvotinginstructions,yourshareswillbevotedastheBoardrecommends.YourshareswillalsobevotedasrecommendedbytheBoard,initsdiscretion,onanyotherbusinessthatisproperlypresentedforavoteattheAnnualMeeting.


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Who may attend the Annual Meeting and are there any requirements I must meet in order to attend in person?

AnyshareholderofrecordasofMarch3,2020,orarepresentativewithaproperwrittenlegalproxysignedbysuchshareholder,mayattend.Youwillbeaskedtoregisteruponarrivalandwillberequiredtopresentproofofcurrentstockownership(suchasarecentaccountstatement)andgovernment-issuedphotoidentification(suchasadriver’slicense)priortobeingadmitted.

IfyoursharesareheldinstreetnameandyoudonotobtainalegalproxybutstillwanttoattendtheAnnualMeeting(andnotvoteyoursharesinperson),youmustprovideevidentiarymaterial,suchasbrokerstatementsoraletterfromyourbrokeragefirmprovingownershipasoftherecorddate.Wereservetherighttorestrictadmissionifevidentiarymaterialisnotdefinitiveproofofproperandtimelyownership.Ifyouwishtosendarepresentativeonyourbehalf,youmustprovidetheevidentiarymaterialaswellaswrittenproofthattherepresentativeisattendingonyourbehalf.

Can I change my vote after I have voted or can I revoke my proxy?

Yes.Ifyouareashareholderofrecord,youcanchangeyourvoteorrevokeyourproxyatanytimepriortotheAnnualMeetingby:

• Providinganothersignedproxythatisdatedlaterthanthevoteyouwanttochange;

• VotingbytelephoneorInternetandrecordingadifferentvote;or

• AttendingandvotingattheAnnualMeeting.

Ifyoursharesareheldinstreetname,youmustfollowthespecificinstructionsprovidedtoyoubyyourbrokeragefirm,bankorothernominee.

How many shares must be present to hold the Annual Meeting?

Toconstituteaquorumandtransactbusiness,shareholdersofamajorityoftheoutstandingsharesentitledtovotemustbepresentinpersonorbyproxyateachoftheAnnualMeetings.

What does it mean if I get more than one set of Proxy Materials?

YoumayreceivemultiplecopiesofProxyMaterialsifyoursharesareregistereddifferently(i.e.,trust,joint,namespellingvariation,etc.)and/oriftheyareinmorethanoneaccount(i.e.,brokeragefirm,bank,transferagent,etc.).Ifyouwishtoconsolidateaccounts,pleasecontactEquinitiTrustCompanyat1-855-598-2714.Pleasevotealloftheproxiesthatyoureceiveandconsiderconsolidatingaccounts.

IfyourhouseholdreceivesmultiplecopiesoftheProxyMaterialsorNoticeofAvailability,youmayauthorizeustodiscontinueduplicatemailingsinthefuturebyelectingtheoptionwhenyouvote,see“Whatis“householding”andhowdoesitaffectme?”belowforadditionalhouseholdinginformation.

Ifyoursharesareheldinstreetnameandyouarereceivingmultiplesetsofmaterialsandwishtoconsolidateaccounts,pleasecontactyourbrokeragefirm,bankorothernominee.

What is “householding” and how does it affect me?

Wehaveadoptedaprocedurecalled“householding”whichhasbeenapprovedbytheSEC.Householdingisintendedtoreducethevolumeofduplicateinformationreceivedbyahouseholdandthecostofpreparingandmailingduplicateinformation.Underthisprocedure,wearepermittedtomailonlyoneNoticeofAvailabilityoronesetofProxyMaterialstomultipleshareholderswhoshareanaddressandwhohaveconsentedtoorhavereceivedpriornoticeofourintenttodoso,solongaswehavenotreceivedcontraryinstructionsfromoneormoresuchshareholders.Consentforhouseholdingwillremainineffectuntilrevoked.


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ToresumethemailingofindividualcopiesoffutureProxyMaterialsorNoticeofAvailabilityandrevokeyourconsenttohouseholding,submitawrittenrequesttoBroadridgeHouseholdingDept.,51MercedesWay,Edgewood,NewYork11717,ormakeanoralrequestbytelephoneto1-866-540-7095.IfyouparticipateinhouseholdingandwishtoreceiveseparateProxyMaterialsorNoticesofAvailability,wewillpromptlymailacopyifyounotifyusbymakingawrittenrequesttoourShareownerServicesDepartmentatOneEnergyPlaza,Jackson,Michigan49201,ormakingarequestbytelephoneto1-517-788-0298.

Ifyoursharesareheldinstreetname,youcanrequestinformationabouthouseholdingbycontactingyourbrokeragefirm,bankorothernominee.

Who conducts the proxy solicitation and how much will it cost?

WearerequestingyourproxyfortheAnnualMeetingandwillpaythecostsofrequestingshareholderproxies.Proxiesmaybesolicitedbydirectors,officersandotheremployees,personallyorbytelephone,Internet,ormail,noneofwhomwillreceivecompensationfortheirsolicitationefforts.WehavearrangedforInnisfreeM&AIncorporated,501MadisonAve.,20thFloor,NewYork,NewYork10022,tosolicitproxiesforafeeof$20,000,plusexpensesanddisbursements.Wewillpayallproxysolicitationcosts.Wemayalsoreimbursebrokeragefirms,dealers,banks,votingtrusteesorotherrecordholdersfortheirreasonableexpensesforforwardingProxyMaterialstobeneficialownersofCMSandConsumersstock.


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APPENDIX A:SUPPLEMENTALINFORMATIONFORTHECOMPENSATIONDISCUSSIONANDANALYSIS—

GENERALLYACCEPTEDACCOUNTINGPRINCIPLES(GAAP)RECONCILIATIONS

CMS - Reconciliation of GAAP Operating Activities to Annual Incentive OCF

2017

(millions)2018

(millions)2019

(millions)Total GAAP Operating Activities $1,705 $1,703 $1,790Exclude:

Changeinpensioncontribution — 240 —ChangeinAccountingPrinciplefromthoseincludedinthebudget — — —FederalTaxReformDiscretion — (155) 10Changeinpowersupplycostrecovery(PSCR)frombudget(disallowancesexcluded) (27) (3) (33)Gas-pricechanges(favorableorunfavorable)relatedtogascostrecovery(GCR)in

JanuaryandFebruary (33) 27 (47) Totalexclusions (60) 109 (70) Annual Incentive OCF $1,645 $1,812 $1,720

CMS - Reconciliation of GAAP Earnings Per Share (EPS) to Annual Incentive Plan EPS 2017 2018 2019EPS Reported — GAAP basis $1.64 $2.32 $2.39Exclude(income)/lossitems:

AccountingPrincipleChangefromBudget (0.03) — —TaxImpact 0.01 — —

AssetSales — (0.01) —TaxImpact — * —

Largerestructuringandseveranceexpensesgreaterthan$5million — — 0.02TaxImpact — — *

Legal/settlementcostsorgainsrelatedtopreviouslysoldassets 0.01 0.04 0.11TaxImpact * (0.01) (0.03)

FederalTaxReform 0.52 (0.01) —TaxImpact — * —

Totalexclusions 0.51 0.01 0.10 Annual Incentive EPS $2.15 $2.33 $2.49

CMSENERGY2020PROXYSTATEMENT A-1

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CMS - Reconciliation of GAAP Earnings Per Share (EPS) to LTI EPS (adjusted EPS) 2014 2015 2016 2017 2018 2019EPS Reported — GAAP basis $1.74 $1.89 $1.98 $1.64 $2.32 $2.39Exclude(income)/lossitems:

Largerestructuringandseveranceexpensesgreaterthan$5million — — 0.04 — — 0.02TaxImpact — — (0.01) — — *

AssetSales — — — — (0.01) —TaxImpact — — — — * —

Legal/settlementcostsorgainsrelatedtopreviouslysoldassets — — 0.01 0.01 0.04 0.11TaxImpact — — * * (0.01) (0.03)

FederalTaxReform 0.05 — — 0.52 (0.01) —TaxImpact (0.02) — — — * —

Totalexclusions 0.03 0.0 0.04 0.53 0.01 0.10 LTI EPS (adjusted EPS) $1.77 $1.89 $2.02 $2.17 $2.33 $2.49

* Lessthan½cent

AverageGAAPEPSgrowthover3years:10%,AverageadjustedEPSgrowthover3years:7%

AverageGAAPEPSgrowthover5years:8.8%,AverageadjustedEPSgrowthover5years:7%

ManagementviewsadjustedEPSasakeymeasureofourpresentoperatingfinancialperformanceandusesadjustedEPSforexternalcommunicationswithanalystsandinvestors.Internally,weuseadjustedEPStomeasureandassessperformance.

CMSENERGY2020PROXYSTATEMENT A-2

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APPENDIX B:

PERFORMANCE INCENTIVE STOCK PLANTheCMSEnergyCorporationPerformanceIncentiveStockPlaneffectiveJune1,2020.

ArticleI.Purpose

TheCMSEnergyCorporationPerformanceIncentiveStockPlan(hereinaftercalledthe“Plan”)isaPlantoprovideincentivecompensationtoEligiblePersons,baseduponsuchEligiblePersons'individualcontributionstothelong-termgrowthandprofitabilityoftheCorporation,andinordertoencouragesuchEligiblePersonstoidentifywithshareholderconcernsandtheircurrentandcontinuinginterestinthedevelopmentandfinancialsuccessoftheCorporation.BecauseitisexpectedthattheeffortsofOfficers,EmployeesorDirectorsselectedforparticipationinthePlanwillhaveasignificantimpactontheresultsoftheCorporation'soperationsinfutureyears,thePlanisintendedtoassisttheCorporationinattractingandretainingOfficers,EmployeesorDirectorsofsuperiorabilityandinmotivatingtheiractivitiesonbehalfoftheCorporation.

ArticleII.Definitions

2.1 Definitions: WhenusedinthePlan,thefollowingwordsandphrasesshallhavethefollowingmeanings:

a. “Affiliate”hasthemeaningsetforthinRule12b-2undertheExchangeAct.

b. “AppreciationValue”meanstheincreaseinthevalueofaPhantomShareawardedtoaParticipantandasdescribedinSection8.1ofthePlan.

c. “Award”meanstheincentivecompensationawardedorgrantedunderthisPlanintheformofsharesofRestrictedCommonStock,RestrictedCommonStockUnits,UnrestrictedCommonStock,StockOptions,StockAppreciationRights,PhantomSharesand/orPerformanceUnits.

d. “AwardDocument”meansanagreement,certificateorothertypeorformofdocumentordocumentationapprovedbytheCommitteewhichsetsforththetermsandconditionsofanAward.AnAwardDocumentmaybewritten,electronicorothermedia,includinganotationonthebooksandrecordsoftheCorporationand,unlesstheCommitteerequiresotherwise,neednotbesignedbyarepresentativeoftheCorporationoraParticipant.

e. “AwardPeriod”meanstheperiodorperiodsoftimerelatingtoanyRestrictionsimposedbytheCommitteewithrespecttoRestrictedCommonStockorRestrictedCommonStockUnitsawardedunderArticleVIIofthePlan.SuchperiodoftimeshallextendforaperiodofatleasttwelvemonthsforDirectors(or,ifearlier,theperiodfromthedateofawarduntilthenextannualmeetingofshareholderstooccurafterthedateoftheaward)andforaperiodofatleastthirty-sixmonthsforOfficersandEmployeesfromandafterthedateoftheawardprovidedthatvestingmayoccurinfullattheendofsuchperiod,andfurtherprovidedthattheCommitteemayprovideforearlyvestinguponthedeath,Disability,Retirementorterminationofserviceoftheawardrecipient,allassetforthintheAwardDocument.

f. “BeneficialOwner”hasthemeaningsetforthinRule13d-3undertheExchangeAct.

g. “Beneficiary”meansthebeneficiaryorbeneficiariesdesignatedtoreceivetheamount,ifany,payableunderthePlanuponthedeathofaParticipant.

h. “Board”meanstheBoardofDirectorsofCMSEnergyCorporationorConsumersEnergyCompany.

CMSENERGY2020PROXYSTATEMENT B-1

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i. “Cause”shallhavethemeaningsetforthinanywrittenagreementbetweentheParticipantandtheCorporationand,ifnotdefined,“Cause”meanstheoccurrenceofanyoneormoreofthefollowing:

(a) ThecontinuedfailurebytheParticipanttosubstantiallyperformhisorherdutiesofemployment(otherthananysuchfailureresultingfromtheParticipant’sDisability),afterademandforsubstantialperformanceisdeliveredtotheParticipantthatidentifiesthemannerinwhichtheCommitteebelievesthattheParticipanthasnotsubstantiallyperformedhisorherduties,andtheParticipanthasfailedtoremedythesituationwithinareasonableperiodoftimespecifiedbytheCommitteewhichshallnotbelessthan30days;or

(b) TheParticipant’s(i)indictmentforafelonyor(ii)convictionforamisdemeanorinvolvingfraud,embezzlement,theft,misappropriationorfailuretobetruthful;or

(c) TheParticipant’s(i)grossnegligence,(ii)failureorrefusal,onrequestordemandbytheCorporationoranygovernmentalauthority,toprovidetestimonytoorcooperatewithanygovernmentalregulatoryauthority,oranyothersimilarnon-cooperationbytheParticipant,(iii)willfulengaginginmisconductmateriallyordemonstrablyinjurioustothebusinessorreputation(byadversepublicityorotherwise)oftheCorporation,monetarilyorotherwise,or(iv)violationofamaterialprovisionoftheCorporation’scodeofconductand/orcodeofethics,includingbutnotlimitedtoviolationsoftheCorporation’spoliciesrelatingtosubstanceabuseanddiscrimination.

j. “ChangeinControl”forParticipantswhohaveawrittenagreementwiththeCorporationincludingachangeincontrolprovision,shallhavethemeaningasspecifiedinsuchagreement.ForotherParticipants,thephraseshallhavethemeaningprovidedinAttachmentAhereto.

k. “Code”meanstheInternalRevenueCodeof1986,asamended.

l. “Committee”means,asandtotheextentspecifiedinSection3.2ofthisPlan,theCompensationandHumanResourcesCommittee[s]oftheBoardand/ortheGovernance,SustainabilityandPublicResponsibilityCommittee[s]oftheBoardwhichshalleachbecomprisedinsuchamannerintendedtocomplywiththerequirementsoftheNewYorkStockExchangeorotherapplicablestockexchanges,andRule16b-3(oranysuccessorrule)undertheExchangeAct,ineachcase,totheextentapplicable.

m. “CommonStock”meansthecommonstockofCMSEnergyCorporationasauthorizedforissuanceinitsArticlesofIncorporationatthetimeofanawardorgrantunderthisPlan.

n. “Corporation”meansCMSEnergyCorporation,itssuccessorsandassigns,andeachofitssubsidiaries,oranyofthemindividually.

o. “Director”meansanypersonwhoisamemberoftheBoard.

p. “Disability”meansadeterminationbytheinsurerorthird-partyadministratorunderanindividualand/orgroupdisabilitypolicycoveringtheParticipantthattheParticipantistotallyandpermanentlydisabledasdefinedinthepolicyorifthereisnosuchcoverage,thenadisabilitythatsatisfiestherequirementsoftotalandpermanentdisabilityunderCodeSection22(e).

q. “EligiblePerson”meansanOfficer,anEmployeeorNon-EmployeeDirector.

r. “EligibleTermination”meansatermination(notinvolvingdeath,Disability,RetirementorCause);pursuanttoanoticeofterminationdeliveredtotheParticipantbytheCorporationorpursuanttoarequestthattheParticipantsubmitaresignationasanemployee.


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s. “Employee”meansanon-Officerpart-timeorfull-timesalaried(exemptandnon-exempt)orunionemployeeoftheCorporation.

t. “ExchangeAct”meanstheSecuritiesExchangeActof1934,asamended.

u. “GrantPeriod”meanstheperiodorperiodsoftimerelatingtoanyrestrictionsimposedbytheCommitteewithrespecttoStockOptionsorStockAppreciationRightsgrantedunderArticleVIofthePlan.Suchperiod(s)oftimeshallextendforaperiodofatleastthirty-sixmonthsfromandafterthedateofthegrantprovidedthatvestingmayoccurinfullattheendofsuchperiod,andfurtherprovidedthattheCommitteemayprovideforearlyvestinguponthedeath,Disability,Retirementorterminationofserviceoftheawardrecipient,allassetforthintheAwardDocument.

v. “ImmediateFamily”meansaParticipant’sspouse,child,step-child,grandchild,siblingorparent.

w. “IncentiveOption”meansanoptiontopurchaseCommonStockthatmeetstherequirementsofthePlanandCodeSection422,oranysuccessorprovision,andwhichisintendedbytheCommitteetoconstituteanIncentiveOption.

x. “Non-EmployeeDirector”meansamemberoftheBoardwhoisnotcurrentlyanemployeeoftheCorporation.

y. “NonqualifiedOption”meansanoptiontopurchaseCommonStockthatmeetstherequirementsofthePlanandwhichisnotanIncentiveOption.

z. “Officer”meansanemployeeoftheCorporationinsalarygradeE-3orhigher.

aa. “Optionee”meansanypersontowhomaStockOptionorStockAppreciationRighthasbeengrantedorwhobecomesaholderunderArticleVIofthePlan.

bb. “Participant”meansapersontowhomanAwardhasbeenmadewhichhasnotbeenpaid,exercised,forfeited,canceled,expiredorotherwiseterminatedorsatisfiedunderthePlan.

cc. “PerformanceCriteria”arethefactorsusedbytheCommittee(onanabsoluteorrelativebasis)toestablishgoalstotrackbusinessmeasures.TheCommitteemayuseoneormoreofthefollowingbusinesscriteria,whichmaybebasedoncorporate-wideorsubsidiary,division,operatingunitorindividualmeasures:netearnings;operatingearningsorincome;earningsgrowth;netincome;cashflow(includingoperatingcashflow,freecashflow,discountedcashflowreturnoninvestment,andcashflowinexcessofcostofcapital);earningspershare;earningspersharegrowth;stockprice;totalshareholderreturn;absoluteand/orrelativereturnoncommonshareholdersequity;returnonshareholdersequity;returnoncapital;returnonassets;economicvalueadded(incomeinexcessofcostofcapital);independentcustomersatisfactionstudiesorindices;expensereduction;sales;orratioofoperatingexpensestooperatingrevenues.Further,thePlanmayincorporatecertainoperatingparameterssuchassafety,reliabilityandcustomerservice.Inaddition,theCommitteemayelecttouseanyotherbusinessorindividualcriteria,whetherornotlistedherein.TheestablishedPerformanceCriteriamaybeappliedonapre-orpost-taxbasisandmaybeadjustedtoincludeorexcludeobjectivelydeterminablecomponentsofanyPerformanceCriteria,including,withoutlimitation,specialchargessuchasrestructuringorimpairmentcharges,debtrefinancingcosts,extraordinaryornoncashitems,unusual,nonrecurringorone-timeeventsaffectingtheCorporationoritsfinancialstatementsorchangesinlaworaccountingprinciples(eachan“AdjustmentEvent”).InthesolediscretionoftheCommittee,theCommitteemayamendoradjustthePerformanceCriteriaorothertermsandconditionsofanoutstandingAwardinrecognitionofanyAdjustmentEvent.


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dd. “PerformanceUnit”meansacontractualrightgrantedtoaParticipantpursuanttoArticleVIIIofthePlantoreceiveadesignateddollarvalueequaltothevalueestablishedbytheCommitteeandsubjecttosuchtermsandconditionsasaresetforthinthisPlanandtheapplicableAwardDocument.

ee. “Person”shallhavethemeaningascribedtosuchterminSection3(a)(9)oftheExchangeActandusedinSections13(d)and14(d)thereof,includinga“group”asprovidedinSection13(d)oftheExchangeAct.

ff. “PlanAdministrator”hasthemeaningsetforthinSection3.2ofthePlan.

gg. “PhantomShare”meansacontractualrightgrantedtoaParticipantpursuanttoArticleVIIIofthePlantoreceiveanamountequaltotheAppreciationValueatsuchtime,andsubjecttosuchtermsandconditionsasaresetforthinthisPlanandtheapplicableAwardDocument.

hh. “RestrictedCommonStock”meansCommonStockdeliveredsubjecttotheRestrictionsdescribedinArticleVIIofthePlan.

ii. “RestrictedCommonStockUnit”meansarighttoreceiveoneshareofCommonStockor,inlieuthereofandtotheextentprovidedintheapplicableAwardDocument,thefairmarketvalueofsuchshareofCommonStockincash,whichshallbesubjecttotheRestrictionsdescribedinArticleVIIofthePlan.

jj. “Restrictions”forpurposesofArticleVIIofthePlanincludesanytime-basedand/orperformance-basedconditionstovesting.

kk. “Retirement”meansretirementofaParticipantfromactiveemploymentorservicewiththeCorporationonorafterage55.

ll. “Shareholder(s)”meanstheshareholder(s)ofCMSEnergyCorporationstock.

mm. “StockAppreciationRight”shallmeanarighttoreceivetheappreciationinvalueoftheoptionedsharesovertheoptionprice,grantedpursuanttoArticleVIofthePlan.

nn. “StockOption”meansanoptiontopurchasesharesofCommonStockataspecifiedprice,grantedpursuanttoArticleVIofthePlan,whichincludesIncentiveOptionsandNon-qualifiedOptions.

oo. “UnrestrictedCommonStock”shallmeanCommonStockwhichisnotsubjecttoRestrictionsorPerformanceCriteria.

pp. “ValuationDate”meansthedateordatesestablishedbytheCommitteeatthetimeofgrantofPhantomShares,whentheAppreciationValueisdetermined.

ArticleIII.EffectiveDate,Duration,ScopeandAdministrationofthePlan

3.1 Effective Date: ThisPlanshallbeeffectiveJune1,2020,conditioneduponapprovaloftheShareholders,andshallcontinueuntilMay31,2030.

3.2 Administration:TheCompensationandHumanResourcesCommitteesshallbethePlanAdministratorforOfficersandEmployees,includinganyAwardoranyAwardDocumentwithrespecttoOfficersandEmployees,andtheGovernance,SustainabilityandPublicResponsibilityCommitteesshallbethePlanAdministratorforNon-EmployeeDirectorsincludinganyAwardoranyAwardDocumentwithrespecttoNon-EmployeeDirectors.

TheCommitteeshallhavefullpowerandauthoritytoconstrue,interpretandadministerthePlan.Alldecisions,actionsorinterpretationsoftheCommitteeshallbefinal,conclusiveandbindinguponallparties.IfanyParticipantobjectstoanysuchinterpretationoractionformallyorinformally,theexpensesoftheCommitteeanditsagentsandcounselshallbechargeableagainstanyamountsotherwisepayableunderthePlantooronaccountoftheParticipant.


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3.3 Indemnification: NomemberoftheCommitteeshallbepersonallyliablebyreasonofanycontractorotherinstrumentexecutedbyhimoronhisbehalfinhiscapacityasamemberoftheCommitteenorforanymistakeofjudgmentmadeingoodfaith,andtheCorporationshallindemnifyandholdharmlesseachmemberoftheCommitteeandeachotherOfficer,employeeoftheCorporationorDirectortowhomanydutyorpowerrelatingtotheadministrationorinterpretationofthePlanmaybeallocatedordelegated,againstanycostorexpense(includingcounselfees)orliability(includinganysumpaidinsettlementofaclaimwiththeapprovaloftheBoard)arisingoutofanyactoromissiontoactinconnectionwiththePlan,unlessarisingoutofsuchperson'sownfraudorbadfaith.Totheextentthatanypaymentorreimbursementofanyliability,costorotherexpenseofaCommitteememberorotherpersonpursuanttothisArticleIII(each,an“indemnitee”)issubjecttotherequirementsofCodeSection409A,thefollowingconditionsshallapply:(a)theindemniteeshallonlybeentitledtothepaymentorreimbursementofexpensesincurredduringtheindemnitee’slifetime;(b)theamountofexpensespaidorreimbursedduringonetaxableyearoftheindemniteeshallnotaffecttheamountofexpenseseligibleforpaymentorreimbursementinanyothertaxableyear;(c)anyreimbursementofanexpenseshallbemadeonorbeforethelastdayoftheindemnitee’staxableyearfollowingthetaxableyearinwhichtheexpensewasincurred;and(d)therighttopaymentorreimbursementofexpensesshallnotbesubjecttoliquidationorexchangeforanotherbenefit.

ArticleIV.Participation,AwardsandGrants

4.1 Participation: EachyeartheCommitteeshalldesignateasParticipantsinthePlanthoseEligiblePersonswho,intheopinionoftheCommittee,havesignificantlycontributedtotheCorporation.

4.2 Awards and Grants: Eachyear,theCommitteemayawardsharesofRestrictedCommonStockand/orUnrestrictedCommonStockandmaygrantRestrictedCommonStockUnits,PhantomShares,PerformanceUnits,StockOptionsand/orStockAppreciationRightstoeachEligiblePersonwhomithasdesignatedasaParticipantinsuchyear.NoIncentiveOptionwillbegrantedtoanEligiblePersonwhoisnotafullorpart-timeemployeeoftheCorporation.

TheCommittee,atitssolediscretion,maygiveauthorizationtothechiefexecutiveofficeroftheCorporationtoawardaspecifiednumberofsharesofCommonStockand/orgrantRestrictedCommonStockUnits,PhantomShares,PerformanceUnits,StockOptionsand/orStockAppreciationRightstoEmployeesdesignatedasParticipants;provided,however,suchauthorizationshallnotbegivenwithregardtotheselectionforparticipationinthisPlanofanOfficer,DirectororotherpersonsubjecttoSection16oftheExchangeActordecisionsconcerningthetiming,pricingoramountofanawardtosuchanOfficer,DirectororotherpersonsubjecttoSection16oftheExchangeAct.

4.3 Awards and Grants to Foreign Nationals:AwardsofCommonStockandgrantsofStockOptions(withorwithoutStockAppreciationRights),RestrictedCommonStockUnits,PhantomSharesorPerformanceUnitsmaybemade,withoutamendingthePlan,toEligiblePersonswhoareforeignnationalsoremployedoutsidetheUnitedStatesorboth,onsuchtermsandconditionsdifferentfromthosespecifiedinthePlanasmay,inthejudgmentoftheCommittee,benecessaryordesirabletofurtherthepurposesofthePlanortoaccommodatedifferencesinlocallaw,taxpolicyorcustom.Moreover,theCommitteemayapprovesuchsupplementstooralternativeversionsofthePlanasitmayconsidernecessaryorappropriateforsuchpurposeswithouttherebyaffectingthetermsofthePlanasineffectforanyotherpurpose;provided,however,nosuchsupplementoralternativeversionshall:(a)increasethenumberofavailablesharesofCommonStockunderSection5.1ofthePlan;or(b)increasethelimitationscontainedinSection5.3ofthePlan;or(c)increasetheindividualcompensationlimitinSection8.2ofthePlan.


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EligiblePersonswhoaresubjecttoUnitedStatesofAmericataxesarenoteligibletoreceiveaStockOptionorStockAppreciationRightthatdoesnotmeettherequirementsforexemptionfromCodeSection409A.

4.4 Terms and Conditions:TheCommitteemayimposesuchtermsandconditionsoneachAward,setforthinanAwardDocument,asitdeemsnecessaryorappropriate,includingwithoutlimitationthevesting,thetimingandmethodofpayment,therighttoearndividendordividendequivalentsandterminationprovisions.AnysuchAwardseithershallbestructuredinsuchamannerastobeexemptfromtherequirementsofCodeSection409AorshallbestructuredtomeettherequirementsofCodeSection409A.GrantsofStockOptionsorStockAppreciationRightsareinallcasesintendedtomeettherequirementsforexemptionfromCodeSection409A.Awardsshallbemadeinaccordancewithapplicablelegalrequirementsoffederalandstatesecuritieslaws,andinmakingdeterminationsoflegalrequirementstheCommitteemayrelyonanopinionofcounselfortheCorporation.

4.5 Deferral of Payment:TheprovisionsofthisPlanregardingpaymentofAwardsshallbesubjecttoandinterpretedinaccordancewith,inallrespects,thedeferralelections,ifany,thataremadefromtimetotimebyaParticipantwhoissalarygrade19oraboveandinaccordancewiththeAwardDocument.TheCommitteemayatitsdiscretionimposemandatorydeferralforanOfficerorDirectortocomplywithstockownershiprequirementsoutsideofthisPlan.However,nosuchdeferralelectionshallbemadetotheextentthatthedeferralwouldcauseadverseconsequencesunderCodeSection409A,andtotheextentthatanAwardissubjecttoCodeSection409AandsuchdeferralcausesanAwardtobepaidonaccountofaseparationfromservicethereunder,paymentshallbedelayedtotheextentrequiredbyCodeSection409A(a)(2)(B)(i).

4.6 Dividends and Dividend Equivalents for Awards with Performance Criteria:Dividendsanddividendequivalentswithrespecttosharessubjecttoperformance-basedvestingconditionsshallbesubjecttothesamevestingconditionsastheunderlyingshares.Paymentofdividendsanddividendequivalentrights,asprescribedintheAwardDocument,mayoccuronlyupontheachievementofPerformanceCriteriaandpaymentisnotpermittedduringtheperformanceperiod.

ArticleV.SharesReservedUnderthePlan

5.1 Shares Reserved: ThereisherebyreservedforawardunderthisPlan6.5millionwholesharesofCommonStock.AllsharesavailableunderthePlanmaybegrantedasIncentiveOptions.TotheextentpermittedbylawortherulesandregulationsofanystockexchangeonwhichtheCommonStockislisted,sharesofCommonStockwithrespecttowhichpaymentorexerciseisincashmaythereafteragainbeawardedormadesubjecttograntunderthePlan.SharesofCommonStockwhicharenotissuedbyreasonofexpiration,cancellation,terminationorforfeitureunderthetermsoftheAwardDocumentandthePlanarepermittedtoagainbeawardedormadesubjecttograntunderthePlan.ThenumberofsharesmadeavailableforoptionandsaleunderArticleVIofthePlanplusthenumberofsharesawardedunderArticleVIIofthePlanplusthenumberofsharesgrantedorpurchasedunderArticleVIIIofthePlanwillnotexceed,atanytime,thenumberofsharesofCommonStockreservedpursuanttothisArticleV.

ForpurposesofdeterminingthenumberofsharesthatremainavailableforissuanceunderthisPlan,(i)thenumberofsharesofCommonStockthataretenderedbyaParticipantorwithheldbytheCorporationtopaytheexercisepriceofaStockOptionortosatisfytheParticipant’staxwithholdingobligationsinconnectionwiththeexerciseorsettlementofanAwardand(ii)thenumberofsharesofCommonStockcoveredbyastock-settledStockAppreciationRighttotheextentexercised,shallbedeemedtohavebeenreleasedordeliveredforpurposesofdeterminingthemaximumnumberofsharesofCommonStockavailableunderthetermsofthisPlanandwillnotbeavailablefornewgrantsorawards.


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5.2 Adjustments. Intheeventofanyequityrestructuring(withinthemeaningofFinancialAccountingStandardsBoardAccountingStandardsCodificationTopic718,Compensation—StockCompensation)thatcausesthepersharevalueofsharesofCommonStocktochange,suchasastockdividend,stocksplit,spinoff,rightsofferingorrecapitalizationthroughanextraordinarydividend,thenumberandclassofsecuritiesavailableunderthisPlan,thetermsofeachoutstandingStockOptionandStockAppreciationRight(includingthenumberandclassofsecuritiessubjecttoeachoutstandingStockOptionorStockAppreciationRightandthepurchasepriceorbasepricepershare),thetermsofeachoutstandingRestrictedCommonStockAwardandRestrictedCommonStockUnitAward(includingthenumberandclassofsecuritiessubjectthereto),thetermsofeachoutstandingPhantomShareAwardandPerformanceUnitAward(includingthenumberandclassofsecuritiessubjectthereto),themaximumnumberofsecuritieswithrespecttowhichAwardsmaybegrantedduringanycalendaryearunderSection5.3toanyonegrantee,shallbeappropriatelyadjustedbytheCommittees.Intheeventofanyotherchangeincorporatecapitalization,includingamerger,consolidation,reorganization,orpartialorcompleteliquidationoftheCorporation,suchequitableadjustmentsdescribedintheforegoingsentencemaybemadeasdeterminedtobeappropriateandequitablebytheCommitteetopreventdilutionorenlargementofrightsofParticipants.Ineithercase,thedecisionoftheCommitteeregardinganysuchadjustmentshallbefinal,bindingandconclusive.AnysuchadjustmentwithrespecttoeachStockOptionorStockAppreciationRightshallbeconsistentwiththerequirementsapplicabletoexemptstockrightsunderCodeSection409Aandapplicableregulations.AnyadjustmentwithrespecttoIncentiveOptionsshallalsoconformtotherequirementsofCodeSection422.

5.3 Limits: ThemaximumsharesawardedorgrantedforanyoneNon-EmployeeDirectorforanyonecalendaryearunderthisPlan,excludinganyPerformanceUnitsgrantedunderSection8.2,willnotexceedthelesserof10,000sharesofCommonStockoravalueof$350,000intheaggregate.Notmorethan10%ofthetotalsharesreservedforgrantorawardunderthisPlanshallbegrantedorawardedtoNon-EmployeeDirectors.

5.4 Tax Withholding Payments:EachvestingandpaymentofCommonStockunderthePlanshallbemadesubjecttoapplicablefederal,stateandlocaltaxwithholdingrequirements.Forthispurpose,theCommitteemayprovideforthewithholdingofsharesofCommonStockorallowaParticipanttopaytotheCorporationfundssufficienttosatisfysuchwithholdingrequirements.EachvestingandpaymentunderArticleVIIIshallbemadesubjecttosuchfederal,stateandlocaltaxwithholdingrequirementsasapplyontherelevantdate.Forthispurpose,ifapayoutismadeunderSection8.2ofthePlaninCommonStock,theCommitteemayprovideforthewithholdingofsharesofCommonStockorallowaParticipanttopaytotheCorporationfundssufficienttosatisfysuchwithholdingrequirements.

IfupontheexerciseofaNonqualifiedOptionand/oraStockAppreciationRightorasaresultofadisqualifyingdisposition(withinthemeaningofCodeSections422and424)ofsharesacquireduponexerciseofanIncentiveOption,thereshallbepayablebytheCorporationanyamountforincometaxwithholding,eithertheCorporationshallappropriatelyreducetheamountofstockorcashtobepaidtotheOptioneeortheOptioneeshallpaysuchamounttotheCorporationtoreimburseitforsuchincometaxwithholding.

ArticleVI.StockOptionsandStockAppreciationRights

6.1 Options: TheCommitteemayfromtimetotimeauthorizeagrantofStockOptions,whichmayconsistinwholeorinpartofauthorizedandunissuedCommonStock.ExercisesofgrantsofStockOptionsarerestrictedbytheGrantPeriod.


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6.2 Optionees:TheCommitteeshalldetermineanddesignatefromtimetotime,initssolediscretion,thoseEligiblePersonstowhomStockOptionsandStockAppreciationRightsaretobegrantedandwhotherebybecomeOptioneesunderthePlan.

6.3 Allotment of Shares:TheCommitteeshalldetermineandfixthenumberofsharesofCommonStocksubjecttooptionstobeofferedtoeachOptionee.

6.4 Option Price:TheCommitteeshallestablishtheoptionpriceatthetimeanyStockOptionisgrantedatnotlessthan100%ofthefairmarketvalueoftheCommonStockonthedateonwhichsuchoptionisgranted;provided,however,thatwithrespecttoanIncentiveOptiongrantedtoanemployeewhoatthetimeofthegrantowns(afterapplyingtheattributionrulesofCodeSection425(d))morethan10%ofthetotalcombinedvotingpoweroftheCorporation(oranyparentorsubsidiarycorporationwithinthemeaningofCodeSection422),theoptionpriceshallnotbelessthan110%ofthefairmarketvalueoftheCommonStocksubjecttotheIncentiveOptiononthedatesuchIncentiveOptionisgranted.OtherthanascontemplatedinSection5.2,innoeventshallStockOptionspreviouslygrantedunderthisPlanbere-pricedbyreducingtheexercisepricethereof,norshallStockOptionspreviouslygrantedunderthisPlanbeboughtoutorcanceledandreplacedbyasubsequentre-grantunderthisPlanofStockOptionshavinganexercisepricelowerthantheStockOptionssocanceled.

6.5 Stock Appreciation Rights:AtthesolediscretionoftheCommittee,anyStockOptiongrantedunderthisPlanmay,atthetimeofsuchgrant,includeaStockAppreciationRight.AStockAppreciationRightmaypertainto,andbegrantedinconjunctionwith,arelatedunderlyingStockOptionand,insuchcase,shallbeexercisableonlyatthetimeandtotheextenttherelatedunderlyingStockOptionisexercisableandonlyifthefairmarketvalueoftheCommonStockexceedstheStockOptionpriceintherelatedunderlyingStockOption.AnOptioneewhoisgrantedaStockAppreciationRightmayelecttosurrendertherelatedunderlyingStockOptionwithrespecttoallorpartofthenumberofsharessubjecttotherelatedunderlyingStockOptionandexerciseinlieuthereoftheStockAppreciationRightwithrespecttothenumberofsharesastowhichtheStockOptionissurrendered.

TheexerciseoftheunderlyingStockOptionshallterminatetherelatedStockAppreciationRighttotheextentofthenumberofsharespurchaseduponexerciseoftheunderlyingStockOption.TheexerciseofaStockAppreciationRightshallterminatetherelatedunderlyingStockOptiontotheextentofthenumberofshareswithrespecttowhichtheStockAppreciationRightisexercised.UponexerciseofaStockAppreciationRight,anOptioneeshallbeentitledtoreceive,withoutpaymenttotheCorporation(exceptforapplicablewithholdingtaxes),anamountequaltotheexcessof(i)thethenaggregatefairmarketvalueofthenumberofshareswithrespecttowhichtheOptioneeexercisestheStockAppreciationRight,over(ii)theaggregateStockOptionpricepershareforsuchnumberofshares.SuchamountmaybepaidbytheCorporation,incash,CommonStockoranycombinationthereofasspecifiedintheAwardDocument.

Notwithstandingtheabove,theCommitteemaygrantStockAppreciationRightsthatarenotinconjunctionwitharelatedunderlyingStockOption.ThebasisusedindetermininganyincreaseinthevalueoftheCommonStockundersuchStockAppreciationRightshallbenotlessthan100%ofthefairmarketvalueoftheCommonStockonthedateofgrant.Totheextent,ifany,thattheCommitteeelectstograntsuchStockAppreciationRights,thensuchStockAppreciationRightsshallinallrespectsbeintendedtobeexemptfromCodeSection409A.OtherthanascontemplatedinSection5.2,innoeventshallStockAppreciationRightspreviouslygrantedunderthisPlanbere-pricedbyreducingtheexercisepricethereof,norshallStockAppreciationRightspreviouslygrantedunderthisPlanbeboughtoutorcanceledandreplacedbyasubsequentre-grantunderthisPlanofStockAppreciationRightshavinganexercisepricelowerthantheStockAppreciationRightssocanceled.


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6.6 Granting and Exercise of Stock Options and Stock Appreciation Rights:EachStockOptionandStockAppreciationRightgrantedhereundershallbeexercisableatanysuchtimeortimesorinanysuchinstallmentsasmaybedeterminedbytheCommitteeatthetimeofthegrant.However,theaggregatefairmarketvalueofsharesunderlyingIncentiveOptions(determinedasofthedateofoptiongrant)thatbecomeexercisableforthefirsttimebyanyOptioneeduringanycalendaryearmaynotexceed$100,000(orsuchotheramountasmaybereflectedinthelimitsimposedfromtimetotimebyCodeSection422(d)oranysuccessorprovision).ThislimitationshallbeappliedbytakingStockOptionsintoaccountintheorderinwhichtheyweregrantedand,totheextentaStockOptionexceedsthislimitation;itshallbetreatedasaNonqualifiedOptionandnotasanIncentiveOption.

6.7 Payment of Stock Option Price:NoticeofexerciseofaStockOptionmustbeaccompaniedbypaymentinfulloftheexercisepriceforallsharessopurchased.PaymentshallbemadebytheOptioneeeitherincashorinCommonStock,includingbutnotlimitedto(i)check,(ii)tendering(eitheractuallyorbyattestation)sharesownedbyaParticipantordirectingtheCorporationtowithholdsharesineachcase,havingafairmarketvalueatthedateofexerciseequaltosuchexerciseprice,(iii)athird-partyexerciseprocedure,includingtheuseofbroker-assistedcashlessexerciseor(iv)acombinationoftheforegoing.NoOptioneeshallhaveanyoftherightsofaShareholderunderanysuchStockOptionuntiltheactualissuanceofsharestosaidOptionee,andpriortosuchissuancenoadjustmentshallbemadefordividends,distributionsorotherrightsinrespectofsuchshares,exceptasprovidedinSection5.2ofthePlan.

6.8 Term of Stock Options and Stock Appreciation Rights:Ifnotsoonerterminated,eachStockOptionandStockAppreciationRightgrantedhereundershallexpirenotmorethantenyearsfromthedateofthegrantingthereof;provided,thatwithrespecttoanIncentiveOptiongrantedtoanOptioneewho,atthetimeofthegrant,owns(afterapplyingtheattributionrulesofCodeSection425(d))morethan10%ofthetotalcombinedvotingpowerofallclassesofstockoftheCorporation(oranyparentorsubsidiarycorporationwithinthemeaningofCodeSection422),suchIncentiveOptionshallexpirenotmorethanfiveyearsafterthedateofgrantingthereof.

6.9 Restrictions on Sale of Shares:If,atthetimeofexerciseofanyStockOptionorStockAppreciationRightgrantedhereunder,theCorporationisprecludedbyanylegal,regulatoryorcontractualrestrictionfromsellingand/ordeliveringsharespursuanttothetermsofsuchStockOptionorStockAppreciationRight,thesaleanddeliveryofthesharesmaybedelayeduntiltherestrictionsareresolvedandonlycashmaybepaiduponexerciseoftheStockAppreciationRight.Atanytimeduringsuchdelay,theCommittee,initssolediscretion,maypermittheOptioneetorevokeaStockOptionexercise,inwhicheventanycorrespondingStockAppreciationRightshallbereinstated.ThisprovisionshallbeinterpretedinsuchamannerastopreservetheexemptionoftheStockOptionorStockAppreciationRightfromCodeSection409A.

ArticleVII.RestrictedCommonStock,RestrictedCommonStockUnitsandUnrestrictedCommonStock

7.1 Awards: SubjecttothetermsofthisPlan,theCommitteemayfromtimetotimeawardRestrictedCommonStock,RestrictedCommonStockUnitsorUnrestrictedCommonStocktoanyEligiblePersonithasdesignatedasaParticipantandinaccordancewithsuchrulesastheCommitteemayprescribe.TheCommitteemayalsoawardRestrictedCommonStockorRestrictedCommonStockUnitsconditionedontheattainmentofaperformancegoalmeasuredbyPerformanceCriteriaasdeterminedbytheCommitteeandsetforthintheAwardDocumentandsubjecttosuchotherrestrictionsastheCommitteedeemsadvisable.


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7.2 Terms of Restricted Common Stock Awards:

a. Stock Awarded: WheneversharesofRestrictedCommonStockareawardedtoaParticipant,suchsharesshallbeoutstanding,andtheAwardDocumentshallbearlanguagestatingthattheshareshavebeenissuedsubjecttotherestrictionssetforthinthePlanandtheAwardDocument.AllsharesofRestrictedCommonStockawardedunderthePlanshallbedepositedforthebenefitoftheParticipantwiththeSecretaryoftheCorporationascustodianuntilsuchtimeasthesharesarevestedandtransferable.

b. Voting Rights: AParticipantwhoisawardedsharesofRestrictedCommonStockunderthePlanshallhavefullvotingrightsonsuchshares,whetherornotthesharesarevestedortransferable.

c. Dividend Rights: SharesofRestrictedCommonStockawardedtoaParticipantunderthePlan,whetherornotvestedortransferable,mayhavefulldividendrightsasdeterminedbytheCommitteeandsetforthintheAwardDocument.AnydividendswithrespecttoRestrictedCommonStockthataresubjecttoperformance-basedrestrictionsshallbesubjecttothesameRestrictionsassuchRestrictedCommonStock.IfsharesofCommonStockorothersecuritiesareissuedasaresultofamerger,consolidationorsimilarevent,suchsharesshallbeissuedinthesamemanner,andsubjecttothesamedepositrequirements,vestingprovisionsandtransferabilityrestrictionsasthesharesofRestrictedCommonStockwhichhavebeenawarded.

d. Vesting: IfaParticipanthasreceivedanAwardofRestrictedCommonStockpursuanttotheprovisionsofthePlan,(i)isemployedbytheCorporationorremainsaNon-EmployeeDirectorattheendoftheAwardPeriodand(ii)forshareswithperformance-basedrestrictions,theperformancegoalshavebeenmet,thentheParticipantshallvestattheendoftheAwardPeriodinthesharesofCommonStockawardedtotheParticipantforthatAwardPeriod,ineachcase,totheextentprovidedintheapplicableAwardDocument.

e. Forfeiture: AforfeitureofsharesofRestrictedCommonStockpursuanttothetermsoftheAwardDocumentandthePlanshallaffectacompleteforfeitureofvotingrights,dividendrightsandallotherrightsrelatingtotheAwardasofthedateofforfeiture.

7.3 Terms of Restricted Common Stock Unit Awards:

a. Number of Shares and Other Terms:ThenumberofsharesofCommonStocksubjecttoaRestrictedCommonStockUnitAwardandtheAwardPeriodandperformance-basedrestrictions(ifany)applicabletoaRestrictedCommonStockUnitAwardshallbedeterminedbytheCommittee.

b. Vesting: IfaParticipanthasreceivedanAwardofRestrictedCommonStockUnitspursuanttotheprovisionsofthePlan,(i)isemployedbytheCorporationorremainsaNon-EmployeeDirectorattheendoftheAwardPeriodand(ii)forRestrictedCommonStockUnitssubjecttoperformance-basedvestingrestrictions,theperformancegoalshavebeenmet,thentheParticipantshallvestattheendoftheAwardPeriodintheAward,ineachcase,totheextentprovidedintheapplicableAwardDocument.

c. Settlement of Vested Restricted Common Stock Unit Awards:TheAwardDocumentrelatingtoaRestrictedCommonStockUnitAwardshallspecify(i)whethersuchAwardmaybesettledinsharesofCommonStockorcashoracombinationthereofand(ii)whethertheParticipantshallbeentitledtoreceive,onacurrentordeferredbasis,dividendequivalents,and,ifdeterminedbytheCommittee,intereston,orthedeemedreinvestmentof,anydeferreddividendequivalents,withrespecttothenumberofsharesofCommonStocksubjecttosuchAward.AnydividendequivalentswithrespecttoRestrictedCommonStockUnitsthataresubjecttoperformance-basedrestrictionsshallbesubjecttothesameRestrictionsassuch


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RestrictedCommonStockUnits.PriortothesettlementofaRestrictedCommonStockUnitAward,theParticipantshallhavenorightsasashareholderoftheCorporationwithrespecttothesharesofCommonStocksubjecttosuchAward.

d. Forfeiture: AforfeitureofaRestrictedCommonStockUnitAwardpursuanttothetermsoftheAwardDocumentandthePlanshallaffectacompleteforfeitureofallrightsrelatingtotheAwardasofthedateofforfeiture.

7.4 Terms of Unrestricted Common Stock Awards. ThenumberofsharesofCommonStocksubjecttoanUnrestrictedCommonStockAwardshallbedeterminedbytheCommittee.UnrestrictedCommonStockAwardsshallnotbesubjecttoanyRestrictionsorPerformanceCriteria;provided,however,UnrestrictedCommonStockAwardsshallnotbegrantedtoOfficers.UponthegrantofanUnrestrictedCommonStockAward,subjecttotheCompany’srighttorequirepaymentofanytaxesinaccordancewithSection5.4,sharesshallbetransferredtotheholderinbookentryform.

7.5 Transferability of Restricted Common Stock and Restricted Common Stock Units:SharessubjecttoaRestrictedCommonStockAwardorRestrictedCommonStockUnitAwardgrantedtoaParticipantwillbecomefreelytransferablebytheParticipantonlyattheendoftheAwardPeriodestablishedwithrespecttosuchAward.

ArticleVIII.PhantomSharesandPerformanceUnits

8.1 Phantom Shares:

a. Grants of Phantom Shares: TheCommitteemayfromtimetotimegrantPhantomShares,thevalueofwhichisdeterminedbyreferencetoashareofCommonStockontermsandconditionsastheCommittee,initssolediscretion,mayfromtimetotimedetermine.EachgrantofPhantomSharesshallspecifythenumberofPhantomSharesgranted,theinitialvalueofsuchPhantomShareswhichshallnotbelessthan100%ofthefairmarketvalueoftheCommonStockasofthedateofgrant,theValuationDates,thenumberofPhantomShareswhoseAppreciationValueshallbedeterminedoneachsuchValuationDate,anyapplicablevestingscheduleforsuchPhantomShares,andanyapplicablelimitationonpaymentforsuchPhantomShares.IntheeventofanyadjustmentsasdescribedinSection5.2ofthePlan,anyoutstandingPhantomSharesshallbealsosubjecttothesameadjustmentasprovidedforinSection5.2ofthePlan.

b. Appreciation Value:

(i) Valuation Dates; Measurement of Appreciation Value:TheCommitteeshallprovideforoneormoreValuationDatesonwhichtheAppreciationValueofthePhantomSharesgrantedshallbemeasuredandfixed,andshalldesignatethenumberofsuchPhantomShareswhoseAppreciationValueistobecalculatedoneachsuchValuationDate.

(ii) Payment of Appreciation Value:ExceptasotherwiseprovidedinthisSection8.1,theAppreciationValueofaPhantomShareshallbepaidtoaParticipantincashinalumpsumassoonaspracticablefollowingtheValuationDateapplicabletosuchPhantomShare.TheCommitteemayinitssolediscretion,establishandsetforthamaximumdollaramountpayableunderthePlanforeachPhantomSharegranted.

8.2 Performance Units: TheCommitteemay,initssolediscretion,grantPerformanceUnitstoEligiblePersons.EachPerformanceUnitwillhaveaninitialvaluethatisestablishedbytheCommitteeatthetimeofgrantandcreditedtoabookkeepingaccountestablishedfortheParticipant.TheCommitteewillsetperformanceperiodsandobjectivesandothertermsandconditionsofthegrantbaseduponPerformanceCriteriaasdeterminedbythe


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Committeethat,dependingupontheextenttowhichtheyaremet,willdeterminethevalueofPerformanceUnitsthatwillbepaidouttotheParticipant.TheCommitteemaypayearnedPerformanceUnitsincash,CommonStockoracombinationthereof.

ArticleIX.Amendment,DurationandTerminationofthePlan

9.1 Duration of Plan: NograntsorawardsmaybemadeunderthisPlanafterMay31,2030.AnyAwardeffectiveonorpriortoMay31,2030willcontinuetovestandotherwisebeeffectiveaftertheexpirationofthisPlaninaccordancewiththetermsandconditionsofthisPlanaswellasanyrequirementssetforthintheAwardDocumentrelativetosuchAward.

9.2 Right To Amend, Suspend or Terminate Plan: ExceptasprovidedinSection9.5below,theBoardreservestherightatanytimetoamend,suspendorterminatethePlaninwholeorinpartandforanyreasonandwithouttheconsentofanyParticipantorBeneficiary;provided,thatnosuchamendmentshall:

a. ChangetheStockOptionpriceoradverselyaffectanyStockOptionorStockAppreciationRightoutstandingunderthePlanontheeffectivedateofsuchamendmentortermination,or

b. AdverselyaffectanyAwardthenineffectorrightstoreceiveanyamounttowhichParticipantsorBeneficiarieshavebecomeentitledpriortosuchamendment,or

c. UnlessapprovedbytheShareholders,increasetheaggregatenumberofsharesofCommonStockreservedforawardorgrantunderSection5.1ofthePlan,changethegroupofEligiblePersonsunderthePlanorincreasethecompensationlimitsofSection5.3and8.2ofthePlan.

NotwithstandinganythingcontainedinthisPlanoranyAwardDocumenttothecontrary,theCorporationshallhavetheunilateralrighttoamendthisPlanandtheAwardsandAwardDocumentsthereunderatanytimetotheextentdeemednecessaryoradvisablebytheCorporationtoensurecompliancewith,orexemptionfrom,therequirementsofSection409A.

9.3 Periodic Review of Plan: InordertoassurethecontinuedrealizationofthepurposesofthePlan,theCommitteeshallperiodicallyreviewthePlan,andtheCommitteemaysuggestamendmentstotheBoardasitmaydeemappropriate.

9.4 Amendments May Be Retroactive: SubjecttoSection9.1and9.2above,anyamendment,modification,suspensionorterminationofanyprovisionsofthePlanmaybemaderetroactively.

9.5 Change in Control Under an Agreement: NotwithstandinganyotherprovisionsinthePlan,intheeventofaChangeinControlandaqualifyingterminationasdefinedunderanywrittenemploymentcontractoragreementbetweentheCorporationandanOfficer,AwardsgrantedunderthisPlanshallvesttotheextent,ifany,providedforinthewrittenemploymentagreementorcontractorinsuchseparatecontractualarrangementrelatingtosuchanawardorgrantasmayexistfromtimetotime.

9.6 Change in Control Without an Agreement: ExceptasotherwisemaybeprovidedbytheCommittee,intheeventofaChangeinControlandanEligibleTermination,aParticipantnotcoveredbyawrittenemploymentcontractoragreementcontainingachangeincontrolprovisionwillhaveanyportionofanAwardawardedorgrantedunderthisPlansubjecttotimebasedonlyrestrictionsvestfullyandsubjecttoaperformance-basedrestrictionvestonaproratabasistothechangeincontroldateusingthetargetnumberofsharesasthebasisfortheproration.


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9.7 Compliance With Section 409A:NotwithstandinganythinginSection9.5or9.6,orinanyindividualagreementtothecontrary,totheextentrequiredforcompliancewithCodeSection409A,ifapplicable,anAwardgrantedunderthisPlanshallnotbepaidorsettledonanacceleratedbasissolelyasaresultofaChangeinControlunlesssuchChangeinControlisa“changeincontrolevent”,asdefinedforpurposesofCodeSection409A.

ArticleX.GeneralProvisions

10.1 Rights to Continued Employment, Award or Option: NothingcontainedinthePlanorinanyAwardunderthisPlanshallgiveanyemployeetherighttoberetainedintheemploymentoftheCorporationoraffecttherightoftheCorporationtoterminatetheemployee'semploymentatanytime.TheadoptionofthePlanshallnotconstituteacontractbetweentheCorporationandanyemployee.NoEligiblePersonwhoisanemployeeshallreceiveanyrighttobegrantedanoption,rightorawardhereundernorshallanysuchoption,rightorawardbeconsideredascompensationunderanyemployeebenefitplanoftheCorporation.

10.2 Nontransferability:NoAwardshallbetransferableotherthanbywill,thelawsofdescentanddistributionorpursuanttobeneficiarydesignationproceduresapprovedbytheCorporationor,totheextentexpresslypermittedintheAwardDocumentrelatingtosuchAward,totheholder’sImmediateFamilymembers,atrustorentityestablishedbytheholderforestateplanningpurposesoracharitableorganizationdesignatedbytheholder,ineachcase,withoutconsideration.ExcepttotheextentpermittedbytheforegoingsentenceortheAwardDocumentrelatingtoanAward,eachAwardmaybeexercisedorsettledduringtheholder’slifetimeonlybytheholderortheholder’slegalrepresentativeorsimilarperson.Exceptaspermittedbythesecondprecedingsentence,noAwardmaybesold,transferred,assigned,pledged,hypothecated,encumberedorotherwisedisposedof(whetherbyoperationoflaworotherwise)orbesubjecttoexecution,attachmentorsimilarprocess.Uponanyattempttososell,transfer,assign,pledge,hypothecate,encumberorotherwisedisposeofanyAward,suchAwardandallrightsthereundershallimmediatelybecomenullandvoid.

10.3 Clawback:

a. If,duetoarestatementofCMSEnergyCorporation’soranAffiliate’spubliclydisclosedfinancialstatementsorotherwise,anEligiblePersonissubjecttoanobligationtomakearepaymentorreturnofbenefitstoCMSEnergyCorporationoranAffiliatepursuanttoaclawbackprovisioncontainedinthisPlan,asupplementalexecutiveretirementplan,abonusplan,oranyotherbenefitplan(a“benefitplanclawbackprovision”)oftheCorporation,theBoardorCommitteemaydeterminethatitshallbeapreconditiontothevestingofanyunvestedAwardoftheEligiblePersonunderthisPlan,thattheEligiblePersonfullyrepayorreturntotheCorporationanyamountsowingundersuchbenefitplanclawbackprovisiontakingintoaccounttherequirementsofCodeSection409A,totheextentapplicable.AnyandallAwardsunderthisPlanarefurthersubjectto(i)anyprovisionoflawwhichmayrequiretheEligiblePersontoforfeitorreturnanybenefitsprovidedhereunder,intheeventofarestatementoftheCMSEnergyCorporation’soranAffiliate’spubliclydisclosedaccountingstatementsorotherillegalact,whetherrequiredbySection304oftheSarbanes-OxleyActof2002,federalsecuritieslaw(includinganyruleorregulationpromulgatedbytheSecuritiesandExchangeCommission),anystatelaw,oranyruleorregulationpromulgatedbytheapplicablelistingexchangeorsystemonwhichCMSEnergyCorporationorConsumersEnergyCompanylistsitstradedsecuritiesor(ii)anyclawbackpolicyoftheCorporation,asitmayexistfromtimetotime.


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b. TothedegreeanybenefitshereunderarenototherwiseforfeitablepursuanttotheprecedingsentencesofthisSection10.3,theBoardorCommitteemayrequiretheEligiblePersontoreturntotheCorporationanyamountsgranted,awardedorpaidunderthisPlan,ormaydeterminethatalloranyportionofanAwardshallnotvest,if:

(1) theawardorgrantofsuchcompensationorthevestingofsuchcompensation,orprofitrealizedontheexerciseorsaleofsecuritiesobtainedpursuanttothePlan,waspredicateduponachievingcertainfinancialresultswhichweresubsequentlythesubjectofasubstantialaccountingrestatementoftheCorporation’sfinancialstatementsfiledunderthesecuritieslaws(a“financialrestatement”),

(2) alowerAward,alowervestingresult,oralowerprofitontheexerciseorsaleofsecuritiesobtainedpursuanttothePlan(“reducedfinancialresults”),wouldhaveoccurredbaseduponthefinancialrestatement,and

(3) inthereasonableopinionoftheBoardortheCommittee,thecircumstancesofthefinancialrestatementjustifysuchamodificationoftheAwardoritsvesting.Suchcircumstancesmayinclude,butarenotlimitedto,whetherthefinancialrestatementwascausedbymisconduct,whetherthefinancialrestatementaffectedmorethanoneperiodandthereducedfinancialresultsinoneperiodwereoffsetbyincreasedfinancialresultsinanotherperiod,thetimingofthefinancialrestatementoranyrequiredrepayment,andotherrelevantfactors.

Unlessotherwiserequiredbylaw,theprovisionsofthisSubsection10.3brelatingtothereturnofpreviouslyvestedPlanbenefitsshallnotapplyunlessaclaimismadethereforebytheCorporationwithinthreeyearsofthevestingofsuchbenefits.

c. TheCommitteeshallalsohavethesolediscretiontorequireaclawbackintheeventofamistakeoraccountingerrorinthecalculationofabenefitoranAwardthatresultsinabenefittoanEligiblePersontowhichhe/shewasnototherwiseentitled.TherightssetforthinthisPlanconcerningtherightoftheCorporationtoaclawbackareinadditiontoanyotherrightstorecoveryordamagesavailableatlaworequityandarenotalimitationofsuchrights.AnyAwardwillbesubjecttotheCorporation’sclawbackpolicy,asmaybemodifiedfromtimetotimeinconformancewithsecuritieslaws,rulesandregulations.

10.4 Governing Law: TheprovisionsofthisPlanandallrightsthereundershallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofMichigan.

INWITNESSWHEREOF,executionisherebyeffected.ATTEST: CMSENERGYCORPORATION/s/ By: /s/

Secretary ChiefExecutiveOfficer


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Attachment A“ChangeinControl”meansachangeincontrolofCMSEnergyCorporation,andshallbedeemedtohaveoccurreduponthefirsttooccurofanyofthefollowingevents:

(a) AnyPersonisorbecomestheBeneficialOwner,directlyorindirectly,ofsecuritiesofCMSEnergyCorporation(notincludinginthesecuritiesbeneficiallyownedbysuchPersonanysecuritiesacquireddirectlyfromCMSEnergyCorporationoritsAffiliates)representingthirtypercent(30%)ormoreofthecombinedvotingpowerfortheelectionofdirectorsofCMSEnergyCorporation’sthenoutstandingequitysecuritieswiththepowerunderordinarycircumstancestovotefortheelectionofdirectors,excludinganyPersonwhobecomessuchaBeneficialOwnerinconnectionwithatransactiondescribedinclause(i)ofparagraph(c)below;or

(b) Thefollowingindividualsceaseforanyreasontoconstituteamajorityofdirectorsthenserving:individualswho,ontheeffectivedateofthePlan(hereaftercalledthe“EffectiveDate”),constitutetheBoardandanynewdirector(otherthanadirectorwhoseinitialassumptionofofficeisinconnectionwithanactualorthreatenedelectioncontest,includingbutnotlimitedtoaconsentsolicitation,relatingtotheelectionofdirectorsofCMSEnergyCorporation)whoseappointmentorelectionbytheBoardornominationforelectionbyCMSEnergyCorporation’sstockholderswasapprovedorrecommendedbyavoteofatleasttwo-thirds(2/3)ofthedirectorsthenstillinofficewhoeitherweredirectorsontheEffectiveDateorwhoseappointment,electionornominationforelectionwaspreviouslysoapprovedorrecommended;or

(c) TheconsummationofamergerorconsolidationofCMSEnergyCorporationoranydirectorindirectsubsidiaryofCMSEnergyCorporationwithanyothercorporationorotherentity,otherthan:(i)anysuchmergerorconsolidationwhichinvolveseitherCMSEnergyCorporationoranysuchsubsidiaryandwouldresultinthevotingsecuritiesofCMSEnergyCorporationoutstandingimmediatelypriortheretocontinuingtorepresent(eitherbyremainingoutstandingorbybeingconvertedintovotingsecuritiesofthesurvivingentityoranyparentthereof),incombinationwiththeownershipofanytrusteeorotherfiduciaryholdingsecuritiesunderanemployeebenefitplanofCMSEnergyCorporationoritsAffiliates,atleastfiftyonepercent(51%)ofthecombinedvotingpowerofthevotingsecuritiesofCMSEnergyCorporationorthesurvivingentityoranyparentthereofoutstandingimmediatelyaftersuchmergerorconsolidationandimmediatelyfollowingwhichtheindividualswhocomprisetheBoardimmediatelypriortheretoconstituteatleastamajorityoftheboardofdirectorsofCMSEnergyCorporation,theentitysurvivingsuchmergerorconsolidationor,ifCMSEnergyCorporationortheentitysurvivingsuchmergeristhenasubsidiary,theultimateparentthereof;or(ii)amergerorconsolidationeffectedtoimplementarecapitalizationofCMSEnergyCorporation(orsimilartransaction)inwhichnoPersonisorbecomestheBeneficialOwner,directlyorindirectly,ofsecuritiesofCMSEnergyCorporation(notincludinginthesecuritiesbeneficiallyownedbysuchPersonanysecuritiesacquireddirectlyfromCMSEnergyCorporationoritsAffiliates)representingthirtypercent(30%)ormoreofthecombinedvotingpowerofCMSEnergyCorporation’sthenoutstandingsecurities;or

(d) Either(1)thestockholdersofCMSEnergyCorporationapproveaplanofcompleteliquidationordissolutionofCMSEnergyCorporationandsuchplanisconsummated,or(2)thereisconsummatedanagreementforthesale,transferordispositionbyCMSEnergyCorporationofallorsubstantiallyallofCMSEnergyCorporation’sassets(oranytransactionhavingasimilareffect).Forpurposesofclause(d)(2),(i)thesale,transferordispositionofamajorityofthesharesofcommonstockofConsumersEnergyCompanyshallconstituteasale,transferordispositionofsubstantiallyalloftheassetsofCMSEnergyCorporationand(ii)thesale,transferordispositionofsubsidiariesoraffiliatesofCMSEnergyCorporation,singlyorincombinations,ortheirassets,onlyqualifiesasaChangeinControlifitsatisfiesthesubstantialitytestcontainedinthat


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clauseandtheBoardofCMSEnergyCorporation’sdeterminationinthatregardisfinal.Inaddition,forpurposesofclause(d)(2),thesale,transferordispositionofassetshastobeinatransactionorseriesoftransactionsclosingwithinsix(6)monthsaftertheclosingofthefirsttransactionintheseries,otherthanwithanentityinwhichatleastfifty-one51%ofthecombinedvotingpowerofthevotingsecuritiesisownedbystockholdersofCMSEnergyCorporationinsubstantiallythesameproportionsastheirownershipofCMSEnergyCorporationimmediatelypriortosuchtransactionortransactionsandimmediatelyfollowingwhichtheindividualswhocomprisetheBoardimmediatelypriortheretoconstituteatleastamajorityoftheboardofdirectorsoftheentitytowhichsuchassetsaresold,transferredordisposedor,ifsuchentityisasubsidiary,theultimateparentthereof.

Notwithstandingtheforegoingclauses(a),(c)and(d),a“ChangeinControl”shallnotbedeemedtohaveoccurredbyvirtueoftheconsummationofanytransactionorseriesofintegratedtransactionsclosingwithinsix(6)monthsaftertheclosingofthefirsttransactionintheseriesimmediatelyfollowingwhichtherecordholdersofthecommonstockofCMSEnergyCorporationimmediatelypriortosuchtransactionorseriesoftransactionscontinuetohavesubstantiallythesameproportionateownershipinanentitywhichownsallorsubstantiallyalloftheassetsofCMSEnergyCorporationimmediatelyfollowingsuchtransactionorseriesoftransactions.


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