NextEra Energy Inc. and Southern Co., home to two of the highest-paid utility executives in the U.S., also reported the largest CEO to median employee pay ratios in 2019.
The SEC in 2017 implemented a rule that required companies beginning in the 2018 proxy season to disclose the annual compensation of their median employee and the ratio between that individual's pay and the CEO. The initial pay ratio disclosures were based off full-year 2017 compensation.
S&P Global Market Intelligence analyzed public disclosures for the top 20 U.S. electric utilities by market capitalization as of Dec. 31, 2019.
NextEra had the largest reported CEO to median employee pay ratio of 168-to-1 in 2019, the analysis shows. The median employee's annual total compensation in 2019 was $129,735, the company reported in its proxy statement.
NextEra Chairman, President and CEO James Robo retained the top spot among the 10 highest-paid utility executives in 2019 with total adjusted compensation of $21.0 million, an overall 2.3% increase from $20.5 million in 2018.
Southern reported a CEO to median employee pay ratio of 166-to-1, inclusive of an annual accounting change in pension value. Excluding the change in pension value for the CEO and median employee, Southern calculated a pay ratio of 136-to-1.
The median employee's annual total compensation in 2019 was $167,872, including $51,300 tied to the change in pension value, the company disclosed in its proxy statement.
Southern Chairman, President and CEO Thomas Fanning received nearly $27.9 million in total adjusted compensation in 2019, inclusive of a nearly $12 million change in pension value. Absent the pension value, the S&P Global Market Intelligence analysis shows Fanning earned $15.9 million in total adjusted compensation in 2019, a 30.5% increase over $12.2 million in total adjusted compensation in 2018.
Of the top 20 electric utilities subject to the 2019 analysis, Avangrid Inc. reported the highest median employee compensation at $221,567 and the lowest CEO pay ratio of 10-to-1. The Connecticut utility reported that the 2019 annual total compensation for former CEO James Torgerson was $2,258,449.
Boise, Idaho-based IDACORP Inc. reported the lowest median employee compensation range in the analysis at $96,949. IDACORP disclosed the annual total compensation of former President and CEO Darrel Anderson in 2019 was $8,271,701.
The 20 largest U.S. electric utilities showed a median CEO pay ratio of 95-to-1 and median employee compensation of $133,255, the analysis shows.
Oklahoma's OGE Energy Corp. disclosed a 58-to-1 CEO to median employee pay ratio based on 2019 compensation, while New Orleans-headquartered Entergy Corp. disclosed a pay ratio of 110-to-1.
Chicago-headquartered Exelon Corp. reported median employee compensation of $126,000 in 2019 with a CEO to median employee pay ratio of 122-to-1. Exelon President and CEO Christopher Crane earned total annual compensation of $15.4 million in 2019, the company disclosed in its proxy statement.
Meanwhile, Akron, Ohio-headquartered FirstEnergy Corp. disclosed median employee pay of $149,550 and reported CEO Charles Jones Jr.'s 2019 annual compensation at about $14.7 million. FirstEnergy disclosed a CEO to median employee pay ratio of 98-to-1.
