Dive Brief:
- A survey of 57 utility companies' chief executive officer (CEO) salaries in 2013 revealed Exelon's CEO had the highest compensation, at $15.6 million for the year.
- Exelon CEO Christopher Crane took the role in March 2012. In 2013, Exelon's stock price fell by 7.9% due to the effects of a high cost of generation and the low cost of fuel.
- According to the survey, the average CEO compensation had increased from 2012, from $4.7 million to $5 million.
Dive Insight:
Crane's compensation could reflect recent developments at Exelon. In October 2013, Crane hit back at industry analysts who downgraded their expectations for the utility's performance that year. Crane said he believed wholesale markets would bounce back, improving the company's earnings over the course of the year. However, he said that if that didn't happen, the utility would consider shutting down plants to save costs—something the analysts failed to take into account, he said.
It appears that under Crane's leadership, Exelon is growing. The utility announced plans April 30 to buy Pepco Holdings Inc, an energy delivery company, for $6.8 billion. The acquisition will shift Exelon's business model away from generation and hopefully balance the company's portfolio as it looks to improve earnings over the next few years.
