Dominion Resources CEO Farrell Made $12.2M In 2011
RICHMOND, Va. (AP) — Energy provider Dominion Resources Inc. awarded its CEO a compensation package valued at nearly $12.2 million in fiscal 2011, down 19 percent from fiscal 2010, according to an Associated Press analysis of a regulatory filing.
The pay package for Thomas Farrell II came in a year when the Richmond-based company’s net income fell 50 percent to $1.4 billion on higher charges from and costs from storm-related power restoration and inspections following the 5.8-magnitude earthquake near its North Anna Nuclear Power Station. The year-ago period included the benefit from the sale of its gas and oil exploration and production business. Its revenue fell 5 percent to $14.4 billion.
Dominion produces electricity and has the nation’s largest natural gas storage system. It serves retail customers in 14 states.
The compensation deal was disclosed Friday in an annual proxy filing with the Securities and Exchange Commission.
Farrell’s salary remained flat at $1.22 million. His performance-based bonus increased 25 percent to $7.3 million, and the value of his stock options and stock awards fell 55 percent to $3.5 million.
The 57-year-old, who has served as chairman, president and chief executive officer since April 2007, also was given other compensation worth $160,854, which included personal flights on company-owned planes and for company car allowances.
In 2010, Farrell’s compensation was valued at $14.9 million.
Dominion also said it will hold its annual shareholders meeting May 8 in Pittsburgh, where shareholders will elect directors to Dominion’s board.
Dominion shareholders also will consider proposals, including one asking Dominion to produce a report on its nuclear safety policies and another asking for a report on the use of coal obtained through mountaintop removal. Other proposals include asking the company for reports on the benefits of Dominion having 15 percent of its electric generation from wind and solar by 2025, and another asking for a report on the impact of natural gas extraction and use.
The Associated Press formula for calculating executive compensation is designed to isolate the value that 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, making the AP total different in some cases than the total reported by companies to the SEC.
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