2003 total fell 9.6% for von Schack, who leads RG&E parent By Todd Grady Staff writer (April 14, 2004) The chairman of Energy East Corp., parent company of Rochester Gas and Electric Corp., received a compensation package worth an estimated $5.1million in 2003. Total compensation for Wes von Schack, who also is president and chief executive, was down 9.6 percent from 2002, when he received compensation estimated at $5.6 million, according to Energy East’s preliminary proxy statement, filed Monday with the Securities and Exchange Commission. Energy East, based in Albany and in Portland, Maine, has 13 subsidiaries, including RG&E and New York State Electric & Gas Corp. Von Schack’s 2003 compensation included restricted stock valued at $1.4 million, according to the proxy. He did not get restricted stock in 2002. The part of von Schack’s 2003 compensation with the highest value was options on 270,000 shares of Energy East common stock. The stock could be worth $1.7 million, based on a rough formula used by compensation experts. In 2002, he received options on 400,000 shares of Energy East common stock valued then at $2.6 million using the same formula. Von Schack’s salary increased 25 percent from 2002 to $875,000, but his bonus declined 25 percent to $924,252. He also exercised options on 50,000 shares of Energy East common stock valued at $169,625, according to the proxy. Energy East declined to comment on von Schack’s compensation, saying it does not comment on personnel matters. However, Energy East’s compensation and management succession committee evaluated the performance of the company’s senior management, including von Schack, and reported its findings in the proxy. ”The CEO has developed a capable management team and has positioned the company to manage its business in an effective and efficient manner, despite the significant risks inherent in the energy markets,” the committee wrote. “The committee also considered the CEO’s leadership in emphasizing a strong commitment to sound corporate governance practices.” Energy East said it expects to save about $100 million annually by 2006 as a result of cost reduction efforts, including past layoffs at RG&E. The energy services provider also reached an agreement to sell RG&E’s Robert E. Ginna nuclear power station to Constellation Generation Group for $422.6 million and reached a five-year electric and natural gas rate settlement with the state Public Service Commission staff affecting RG&E customers. RG&E had been asking for significant electric and natural gas rate increases but agreed to keep delivery rates flat while raising fees slightly. The PSC board still must vote on the settlement. Energy East’s compensation committee also noted that all of the company’s utility subsidiaries continued to meet or exceed reliability and customer satisfaction targets established by regulators. Energy East’s annual meeting is scheduled for 9 a.m. June 18 at the Citicorp/Citibank auditorium in Manhattan. Shares of Energy East closed Tuesday at $24.74, down 27 cents. TGRADY@DemocratandChronicle.com
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