NextEra Energy Inc. Chairman, President and CEO James Robo retained the top spot among the 10 highest-paid utility executives in 2019.
Nearly all but one of the highest-paid chief executives in the U.S. utilities industry reported a boost in compensation in 2019, according to an S&P Global Market Intelligence analysis of the year.
Robo received total adjusted compensation of $21.0 million in 2019, including $11.7 million in stock awards, for an overall 2.3% increase from $20.5 million in 2018.
NextEra also had the highest CEO to median employee pay ratio of 168-to-1, the analysis shows. The median employee's annual total compensation in 2019 was $129,735, the company reported in its proxy statement.
In the third quarter of 2019, NextEra became the first U.S. electric utility to surpass $100 billion in market capitalization.
The Juno Beach, Fla.-headquartered utility remained active on the M&A front in 2019 but was ultimately unable to seal a deal for Florida municipal utility JEA or Santee Cooper, known legally as South Carolina Public Service Authority.
Former PG&E Corp. President and CEO Bill Johnson, who took the reins of the embattled California utility in April 2019, brought in $18.5 million in total adjusted compensation primarily consisting of stock and options awards. Johnson, however, brought in the most cash compensation at $5.1 million, the analysis shows.
PG&E Corp. and its utility subsidiary Pacific Gas and Electric Co. filed for Chapter 11 bankruptcy protection in January 2019 under the weight of massive wildfire liabilities. The companies emerged on July 1 from their large and complicated restructuring case under the new leadership of interim CEO William Smith.
PG&E Corp. reported a CEO to median employee pay ratio of 94-to-1 in 2019, according to the analysis.
Southern Co. Chairman, President and CEO Thomas Fanning climbed to the third spot with $15.9 million in total adjusted compensation, including $10.8 million in stock awards, in 2019, a 30.5% increase over $12.2 million in total adjusted compensation in 2018. The analysis does not include a change in pension value of nearly $12 million.
Southern reported a CEO to median employee pay ratio of 166-to-1, inclusive of the large change in pension value. The median employee's annual total compensation in 2019 was $167,872, the company disclosed in its proxy statement.
Dominion Energy Inc. Chairman, President and CEO Thomas Farrell II saw a 0.5% drop in total adjusted compensation in 2019, bringing in $14.9 million excluding a change in pension value. Farrell was the second-highest paid utility executive in 2018 with $15 million in total adjusted compensation.
Dominion estimated a 2019 CEO to median employee pay ratio of 119-to-1. The company disclosed that its median employee's annual total compensation in 2019 was $145,136.
Farrell is stepping down as president and CEO of Dominion on Oct. 1 after 15 years at the helm of the company. Farrell will become executive chairman of Dominion's board of directors. Executive Vice President and co-COO Robert Blue will succeed Farrell.
The change in leadership comes as Dominion increases its focus on cleaner energy and its regulated utilities following the cancellation of the Atlantic Coast Pipeline and the $9.7 billion sale of its natural gas transmission and storage business to Berkshire Hathaway Energy.
Meanwhile, the majority of the top 10 utility CEOs ranked by percentage change in compensation from 2018 to 2019 took the helm of their respective companies during the year subject to the analysis.
Chesapeake Utilities Corp. President and CEO Jeffry Householder, appointed in January 2019, reported the largest year-over-year percentage change in total adjusted compensation. Householder was followed by WEC Energy Group Inc. President and CEO Joseph Fletcher, who took the helm in February 2019, and Alliant Energy Corp. Chairman, President and CEO John Larsen, who took over in July 2019.
