Constellation Energy Group is strongly defending the multimillion-dollar compensation package it gives its chairman and CEO, Mayo A. Shattuck III.
“[Shattuck’s] performance rivals or exceeds the CEOs of other local corporations,” said Robert L. Gould, a Constellation spokesman. “His pay range is in the middle of the pack.”
In a story published Monday, The Examiner reported that energy executives are enjoying record-high compensation packages even as ratepayers face double-digit rate hikes.
In 2004, Shattuck earned $5 million. But documents filed by Constellation with the U.S. Securities and Exchange Commission Monday show that Shattuck got a raise in 2005, earning between $6 million and $7 million. About $2.5 million of the compensation is deferred and based on the utility reaching certain performance levels.
This is well-deserved compensation, according to Gould.
“Since the fall of 2001, Constellation has created more than 1,000 brand-new jobs in Baltimore,” he said. He added that under Shattuck’s guidance, Constellation has grown its revenues from $3 billion to $17 billion and gone from a ranking of 427 on the Fortune 500 list to 125.
“Constellation has also contributed $4 million to the United Way,” Gould said.
The defense of its CEO’s compensation plan comes as the energy company prepares to raise customers’ gas and electric rates by 72 percent and in the wake of a bitter battle with the Maryland General Assembly.
There is still a movement afoot among some legislators to call a special session and demand more concessions from the utility.
Also at issue is who will ultimately benefit from the pending merger between Constellation and Florida-based FPL Group.
While Constellation has not revealed the amount of the compensation Shattuck and other top executives could make if the merger is ultimately approved by the Public Service Commission, Shattuck will donate between $5 million to $10 million to his family’s nonprofit foundation once it goes through, according to Gould.
