Big payday for two We Energies execs
WEC Energy Group's new chief executive officer and his predecessor each received total compensation with an estimated value of more than $11 million last year.
Allen Leverett, the new president and chief executive officer of the company, the parent of We Energies, received compensation valued at $11.5 million, including $4.5 million from the change in the value of his pension and deferred compensation, according to the company's proxy statement filed this week. His salary was $941,667.
Gale Klappa, who retired as chief executive on May 1, received compensation valued at $11.1 million, including stock awards with an estimated value of $7.4 million.
The board's compensation committee accelerated the vesting of 47,181 shares of restricted stock previously granted Klappa in connection with his retirement and his contributions to the company's success, according to the proxy statement filed with the Securities and Exchange Commission.
In an email, Amy Jahns, a spokeswoman, said the company’s compensation program is tied to meeting short- and long-term goals aligned with the interests of the company’s stockholders and customers.
“Compensation at WEC Energy Group is benchmarked against companies nationwide and is based on performance,” Jahns said. “It’s important to note that our executive compensation is targeted at the ‘market median.’ That is, in the middle of the pay range for individuals in similar positions in similar companies nationwide.”
Klappa will remain on the company’s board as non-executive chairman. He will be paid $200,000 a year and receive an annual award of restricted stock equal in value to $250,000 a year.
The company’s directors voted to increase their own cash compensation to $100,000 a year, up from $75,000. The directors also receive an annual grant of restricted stock equal in value to $125,000.
Seven of the company’s 12 directors also are eligible for a program in which We Energies will give $100,000 a year for 10 years to a charity or charities of their choice upon their death. The program was ended for new directors after Jan. 1, 2007.