Constellation Energy’s top executive could pocket nearly $50 million if he leaves the company under certain circumstances following its sale last week to MidAmerican Energy.
Constellation Chairman, President and Chief Executive Officer Mayo Shattuck could be in line for an $18 million cash severance package, $29.6 million in enhanced pension payments and $48,000 in health benefits, according to the company’s April proxy filing with the Securities and Exchange Commission.
Shattuck would also earn money for his stock and tax benefits, valued at an additional $21.3 million and $16 million, respectively. However, those numbers are based on the company’s stock value, which plunged 60 percent between Monday and Wednesday.
The figures are based on Shattuck’s departure for a “change in control with qualifying termination,” according to the proxy statement. The filing defines those qualifiers as termination by Constellation without cause or a resignation by him with good reason.
That’s a fairly common occurrence in the world of corporate takeovers, said David Schmidt, an executive compensation expert with New York-based James F. Reda & Associates.
“Typically, the CEO loses his job,” Schmidt said. “And the [chief financial officer] is usually gone too, because at the corporate level there’s already a CFO. General counsel might go too, if there’s already one of those.”
Constellation’s chief financial officer, John Collins, wouldn’t receive quite as big a payday as Shattuck. According to the proxy statement, he’s entitled to a $2.7 million cash severance, $209,000 in enhanced pension and $58,900 in health benefits under the same conditions of departure as Shattuck. Other top Constellation executives would receive several million dollars of severance pay.
So far, the fate of the company’s top executives is unclear. MidAmerican CEO Gregory Abel said during a press conference at Constellation headquarters Thursday that there had been no discussion of Shattuck’s future to that point.
Constellation representatives could not be reached for comment Friday afternoon.
Recently, two ousted executives were denied their “golden parachutes.” The U.S. government said last week it would not pay the departing chief executives of Fannie Mae and Freddie Mac exit packages totaling as much as $24 million. The government took over operation of the failing mortgage giants earlier this month.
Parting gifts
What Constellation’s top executives would take home if they are terminated from the company without cause or resign with good reason:
Mayo Shattuck, chairman, president and CEO
$18 million cash severance
$29.6 million enhanced pension
$48,000 health benefits
John Collins, chief financial officer
$2.7 million cash severance
$209,000 enhanced pension
$58,900 health benefits
Thomas Brooks, executive vice president
$5 million cash severance
Felix J. Dawson, senior vice president
$2.8 million cash severance
George E. Persky, senior vice president
$3 million cash severance
Source: Constellation Energy’s proxy statement filed with the Securities and Exchange Commission.
