Deregulation is turbocharging energy executives? compensation plans, according to Kenneth R. Stanton, a professor of finance at the University of Baltimore.
“The incentives are getting distorted,” he said.
Constellation Energy Group executives are not the only ones benefiting. Energy executives in neighboring utilities are also reaping the rewards of a deregulated playing field.
Washington-based Pepco Holdings Inc. chairman, president and CEO Dennis R. Wraase earned $1.76 million in 2005, according to Dow Jones & Co. Meanwhile, Paul J. Evanson, chairman, president and CEO of Greensburg, Pa.-based Allegheny Energy, earned about $2.6 million.
“How much pocket change do they need?” Stanton asked.
Richmond-based Dominion Resources Inc., a neighboring utility to the south, paid its chairman, Thos E. Capps, about $4.5 million in 2005, plus millions in stock options.
