Wesley W. von Schack, in addition to continuing as a chief executive of Energy East following its acquisition by Iberdrola, will receive a lump-sum payment of $21.8 million from the Spanish company to satisfy all benefits due him under the Energy East's supplemental executive retirement program.
Details of the agreement between von Schack and Iberdrola were contained in a regulatory filing released Thursday evening. The executive contract indicated that the man who has been in charge of Energy East for the past 11 years will continue in that role, serving as head of the regulated utility that will be owned by the company based in Bilbao, Spain.
Iberdrola announced on Monday that it would acquire Energy East for $4.5 billion, or $28.50 a share. The transaction is expected to be completed by mid-2008.
In addition to salary and bonus, von Schack will be eligible for an annual $2.5 million payment in stock or cash if he meets certain self-established "performance objectives."
The contract between Iberdrola specifies that von Schack is also due an annual salary of $900,000, the same base salary that he now receives. In addition, he will get a "retention bonus" of $900,000 annually for at least three years if he remains with the company that long. The veteran utility industry executive also qualifies for annual bonus payments up to two times his annual base salary.
When added together, the base salary, bonus and retention payments could total as much as $5.2 million yearly. The most recent Energy East proxy statement put von Schack's energy East stock holdings at 1.7 million shares, for which he will be paid $28.5 million at the announced purchase price.
The 70-page document filed with the Securities Exchange Commission provides that all Energy East executive stock options, vested and unvested, will be paid to those who qualify when the deal closes.
No comments:
Post a Comment