- The Washington Times - Thursday, March 19, 2009

CHICAGO (AP) - John Rowe, chairman and chief executive of power generator Exelon Corp., received total compensation of $12.2 million in 2008, a 10 percent increase from 2007, according to a regulatory filing Thursday.

But about 70 percent of the package came in the form of stock options that currently have little value absent a major jump in the company’s stock price.

Rowe’s compensation package totaled $11 million in 2007.

Rowe received a salary of $1.5 million in 2008 and a performance-based bonus of $1.8 million. He also received other compensation valued at $400,192 that included $140,337 in life insurance premiums and $155,338 for personal use of corporate aircraft.

The bulk of the compensation came from stock options worth $8.5 million when they were awarded in January 2008 as Exelon stock was trading above $70.

The company’s compensation committee noted how the declining value of Exelon’s stock hurt the compensation package for executives. It said stock options awarded in 2008, 2007 and 2006 would not generate a profit now because they are not considered to be “in the money.” Performance-based shares for the 2006-2008 period were based on the January 2008 stock price of approximately $73, while shares awarded in January 2008 were worth approximately $56 and since have fallen to $44.

The Associated Press formula is designed to isolate the value the company’s board placed on the executive’s total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.

The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC, which reflect the size of the accounting charge taken for the executive’s compensation in the previous fiscal year.

Chicago-based Exelon, the nation’s nuclear power generator, reported profit of $2.7 billion, or $4.20 per share, in 2008, down slightly from $2.8 billion, or $4.32 per share, in 2007. Revenue was about flat at $19.1 billion in 2008.

In October, Exelon announced that it wants to buy Princeton, N.J.-based power generator NRG Energy in a deal that would create the nation’s largest power generator with enough capacity to power nearly 45 million homes with 47,000 megawatts. The deal, valued at $6.2 billion when it was announced, has fallen to about $5 billion because of Exelon’s declining stock price.

NRG has rejected Exelon’s offer, saying it is willing to talk, but that the offer of 0.485 shares of Exelon stock for NRG stock is too low.

Exelon distributes electricity to 5.4 million customers in Illinois and Pennsylvania and natural gas to more than 480,000 customers in southeast Pennsylvania.



Click to Read More

Click to Hide