LIPA payroll, workforce increase

The Long Island Power Authority increased its workforce in 2017 to its highest level in four years, while average annual compensation rose by a cumulative 22 percent to just over $125,000, according to a Newsday analysis.

LIPA’s total workforce grew to 54 full- and part-time employees last year, from 46 in 2015. LIPA’s primary role is oversight of PSEG Long Island, which manages the regional electric grid under a 12-year contract.

Gov. Andrew M. Cuomo cut LIPA’s payroll in half in 2014 when his LIPA Reform Act took effect, giving most operational duties to PSEG. Cuomo also empowered the state Department of Public Service to take on a “review and recommend” oversight role of LIPA and PSEG.

This year LIPA expects to hold steady at 54 employees.

The average LIPA employee in 2017 earned $125,801.26, compared with $106,415.21 in 2016, the analysis shows.

In all, 33 of LIPA’s 54 employees had compensation of more than $100,000, according to the analysis based on figures provided by LIPA.

Five employees last year worked part time. LIPA had 52 employees in 2014.

About $300,000 of the 2017 pay for all LIPA employees was in a category of “other” compensation, which includes pay for unused vacation time and which doubled in 2017. Other pay totaled $145,736 in 2016.

Spokesman Sid Nathan said LIPA and other government agencies have offered the vacation buyback option for many years.

“LIPA pays competitive salaries for staff with relevant industry experience and shares the same benefit programs as other state employees,” Nathan said.

LIPA trustee Matthew Cordaro, speaking for himself, said he supports LIPA increasing its payroll so that the agency can properly attend to its oversight role, but questioned “the significant amount of vacation buyback.” He argued that “when you wrap in increased pension concerns with this, it becomes a bigger issue.”

Nathan noted the “other” pay may include unused benefit accrual, fringe benefit calculations and other expense reimbursements.

Overall LIPA payroll increased to $6.8 million in 2017, from $5.53 million in 2016.

LIPA’s total budget for employees, including benefits, was $10.8 million last year, compared with $9 million in 2016, according to the authority’s 2018 budget. The figure was projected to grow to $11.5 million this year, the budget said.

Among those with the biggest pay increases in 2017 was Nathan, a former spokesman for Suffolk County who joined LIPA as director of communications in 2016. His total pay package last year was $161,006, compared with $137,596 in 2016. Nathan said the increase resulted from a pay-match made by LIPA after he was offered a better-paying job.

LIPA chief executive Thomas Falcone’s total compensation in 2017 increased to $289,103, from $280,103 the year before, although his base pay remained the same at $275,000. LIPA reported he received $14,100 in other compensation during the year.

John Mostel, the outgoing LIPA general counsel, received $15,925 in “other” pay last year, pushing his total compensation in 2017 to $257,464. His base pay was $241,539. In 2016, Mostel took home $240,000 in total compensation

Rick Shansky, vice president of operations oversight, saw his 2017 base pay rise to $197,000 from $190,000 in 2016. Other pay pushed his total compensation to $201,627.

Kenneth Kane, vice president of financial oversight, had base pay of $218,923 in 2017, and $16,865 in other pay pushed that package to $235,789 last year. His total compensation in 2016 was $216,707, including $8,269 in other pay.

Justin Bell, director of rates and regulation, saw his total compensation increase to $161,500 in 2017, compared to $154,745 in 2016.

David Clarke, director of wholesale market policy, pulled in $199,192 total compensation in 2017. His base salary was $189,462 and he received $9,731 in “other pay” during the year.

Michael Deering, director of customer services oversight and stakeholder relations, received $14,135 in other compensation in 2017, pushing his pay to $197,616 from a base salary of $183,481. In 2016 his total compensation was $194,115, with a base pay of just over $180,000.

Barbara Dillion, director of human resources and administration, saw her base pay increase to $157,769 last year, but other compensation of $12,154 pushed her total pay package last year to $169,923.

Maria Gomes, director of procurement, had base pay of $127,308 last year, and $9,808 in other compensation pushed her total 2017 compensation to $137,116. Michael Howard, director of accounting, saw his base pay of $142,539 rise to $153,519 after a $10,981 boost in other pay. His total 2016 compensation was $139,462.

Kathleen Mitterway, director of audit, saw her total pay increase to $168,695 in 2017, up from $155,000 in 2016, also based on $9,195 in “other” pay.

Compensation for PSEG employees and managers is not disclosed. But a bill passed by the State Legislature and signed by Cuomo in December requires PSEG officials to disclose pay and bonuses, as part of state rate-case proceeding. The next proceeding is expected in 2019.

The Newsday analysis also shows that even as staff compensation has grown, LIPA is spending more on outside professional services for lawyers, accountants, financial advisers and engineers.

LIPA’s 2018 budget reported that professional services grew to $14.3 million in 2017, up from $10.6 million in 2016. LIPA in 2017 spent $4 million on legal services; $2.8 million for accounting and audit services; and $1.6 million for financial advice and cash management.

LIPA projects professional services costs to be $15.1 million this year.

With Timothy Healy

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.