boston business journal
Nstar's May racked up $12M in 2005
Boston Business Journal - Monday, April 3 2006

Nstar Chief Executive Thomas May received nearly $12 million in total compensation last year, including $5 million in restricted stock in lieu of an employment contract.

The Boston company distributes electricity to 1.4 million customers in Massachusetts, and last reported having 3,050 employees. Nstar had a $196 million profit in 2005 on $3.2 billion in sales.

The value of Nstar shares (NYSE: NST) rose 10 percent last year, and have been relatively flat since Dec. 31, closing Friday at $28.61.

May's 2005 pay included:

$853,000 in salary, up 10 percent from 2004;
  • $1.4 million in bonus money, down 8 percent;
  • $7 million in restricted stock; and
  • $2.5 million in stock options awarded in previous years that May exercised in 2005.

  • May, 58, was also granted new options to purchase 200,000 shares of stock in future years, more than one-third of all awarded by Nstar in 2005. NStar's senior-most five executives received 70 percent of all Nstar options last year.

    A five-year employment agreement with May expired in August 2004. In lieu of a similar employment contract, NStar's board elected to award May a one-time deferred share award of $5 million, with all shares vesting in April, 2009.

    Nstar General Counsel Douglas Horan and Chief Financial Officer James Judge each received $2.8 million in total compensation.

    Nstar holds its annual meeting on May 4 in Boston. Three trustees stand for re-election: Thomas Dignan, of counsel at Ropes & Gray LLP; Matina Horner, a trustee of BlackRock Funds; and Gerald Wilson, a professor at the Massachusetts Institute of Technology.