Thomas May, Eversource CEO, Receives $12 Million In 2015, A Decline From Prior Year
By Stephen Singer
March 25, 2016
Thomas J. May, the chief executive officer of Eversource Energy, received total compensation last year of more than $12 million, a drop from 2014 when his options exercises and stock vesting totals were larger.
May's compensation included a salary of $1.2 million, incentive pay of $2.4 million and $82,260 in the form of a life insurance benefit, 401k retirement plan contributions, financial planning services and the use of a company-leased vehicle.
The bulk of May's compensation last year was $8.2 million that he realized through the exercise of previously granted stock options and through the vesting of previously granted stock.
Eversource, which operates electric and gas utilities in Connecticut, Massachusetts and New Hampshire, calculated an additional $165,239 in pension and deferred earnings for May, 68.
May's compensation in 2014 was about $19 million.
Separately in 2015, in addition to the $12 million in total compensation, May received stock awards of $5.8 million, the value of which will depend on the performance of the company's shares.
The Courant calculates executive compensation as the sum of salary, bonuses and other direct pay, plus the value gained on the exercise of stock options and the value of vested stock awards.
Four executive vice presidents of Eversource each realized between $3.8 million and $4.8 million in newly vested stock, in addition to their compensation packages ranging from $1.5 million and $2.2 million for 2015. They are James Judge, chief financial officer; Leon Olivier, strategy and business development; Werner Schweiger, chief operating officer; and David McHale, chief administrative officer.
Eversource, formerly called Northeast Utilities, is based in Boston and Hartford. The company said it linked its compensation to "performance that will ultimately benefit" its customers and shareholders. Earnings for 2015 were $2.81 per share, a 6.4 percent increase over 2014, which Eversource said outperformed an industry index.
Eversource also said its total shareholder return in 2015 exceeded the industry index, though it was slightly below the S&P 500 index, a broad measure of 500 companies.
Its stock price for the year was down more than 3 percent, while the S&P index rose 1 percent.
Eversource posted revenue last year of $7.95 billion, up about 3 percent from 2014. Profit of $878.5 million rose 7 percent.
Electric system reliability, which is measured by months between interruptions and average time to restore power, was in the top quartile of industry peers, Eversource said. Power was out on average every 16.6 months in 2015, the utility said. The average time to restore power continued to fall, to 71.6 minutes last year from 104.1 minutes in 2012.
Eversource also said it made "significant progress" in its Northern Pass transmission project in New Hampshire. The project has drawn opposition from some New Hampshire communities, forcing Eversource to make changes in the route and other aspects of the project.
It said it has received approval for a draft environmental impact statement from federal officials and added 52 miles of an underground route.