Top PSEG LI exec received nearly $900,000 in total compensation last year
PSEG Long Island's recently retired president made $899,867 in total compensation for 2021, more than triple that of his top LIPA counterparts, according to a disclosure released to Newsday Wednesday afternoon.
Six other top PSEG LI executives all made more than their LIPA counterparts, with compensation ranging from $571,737 to $336,389. By comparison, LIPA's top executive made just over $332,000.
The disclosure statement, which was released to Newsday yesterday following PSEG's withdrawal Tuesday of its previous request for confidentiality of executive pay, came as public officials increased pressure on the company to release salary figures.
State Sen. Todd Kaminsky (D-Long Beach), who co-authored the law with Assemb. Fred Thiele Jr. (I-Sag Harbor), to force PSEG's disclosure, called the PSEG compensation figures "shocking."
"I think the average Long Island ratepayer would be shocked to know the head of the power company is making nearly $1 million," Kaminsky said, adding, "The gap between actual performance and how they are being compensated is out of wack."
The $899,867 total compensation of former president and chief operating officer Daniel Eichhorn, who retired from PSEG in April, included a base salary of $317,200 in 2021. But his package was boosted by $83,300 in incentive bonus, $11,600 in a savings plan, $174,000 in increased value of his pension benefits and $312,078 in "other" pay, which can include long-term incentive grants, special achievement awards, vehicle, mobile phone and housing stipends, and relocation pay, according to the filing.
LIPA's chief executive Tom Falcone, by comparison, made $311,121 in pay last year.
The second-highest compensated PSEG LI executive in 2021 was Paul Napoli, who heads up the power markets division. His $571,737 in total compensation included a $260,199 salary, a $67,400 bonus, $8,635 in a savings plan, and $99,107 in other pay. PSEG also pays life insurance premiums for the officials, ranging in value from $340 to more than $2,000.
Total compensation for Richard Walden, managing director and vice president for customer operations, was $457,890, according to the filing, including $64,900 in bonus pay, $119,096 in other pay and $8,017 in a savings plan. His base salary was $250,554.
Peggy Keane, who for the past month had been interim president and COO along with managing director and vice president of construction and operations, had a total package of $494,567, with $233,134 in salary and $60,400 in bonus, as well as $179,096 in other pay.
Gregory Filipkowski, managing director and chief information officer, had total compensation of $459,949 in 2021, including $193,846 in salary and $250,068 in other pay.
Michael Sullivan, PSEG LI's managing director and vice president of electric operations, had total compensation of $479,306, including a base salary of $216,904 and incentive pay of $46,900. His package also included $106,552 in other pay, $98,000 in value of pension benefits and $10,561 in a savings plan.
Kaminsky said he and Thiele plan to write the Department of Public Service to request that PSEG disclose more than just the top seven executives, a list that does not include newly named interim chief operating officer Dave Lyons. LIPA discloses pay levels for all its employees.
LIPA's top-paid executive is chief financial officer Tamela Monroe, who last year was paid $332,250. LIPA announced Wednesday she will be stepping down from the utility. Billy Raley, LIPA's senior vice president of transmission and distribution oversight, has annual compensation of $325,000. And Mujib Lodhi, LIPA's chief information officer, is also paid $325,000. LIPA executives do not receive bonuses.
PSEG, in a statement, noted it is paid a "fixed management fee to run the day-to-day operations of the electric system. Executive compensation is paid out of that fee and is in line with other NY Metropolitan area utility compensation."
PSEG spokeswoman Ashley Chauvin added, "Maintaining (pay) parity is required in order to attract and retain talent with a specific experience set."
PSEG on Tuesday formally withdrew its request to keep executive salary information confidential. Chauvin said the decision to withdraw the confidentiality request came "after review and discussion with our partners in government."
PSEG earlier this month had balked at complying, saying disclosure "would create unreasonable and unnecessary risks for the employees identified," as well as "substantial injury to the competitive position" of PSEG.
PSEG's withdrawal of the request came as the company named Dave Lyons as interim president and chief operating officer, the second official to take the job after former president Eichhorn retired in April.
Lyons also serves as executive director for special projects at the Long Island division of PSEG, which is based in Newark. He's been working to implement system improvements in the aftermath of the company's much-criticized response to Tropical Storm Isaias.
Lyons replaces Keane, the previous interim president, who remains managing director and vice president of construction for PSEG LI.
"We thank Peggy Keane for stepping in as Interim — in addition to her day-to-day role — these past few weeks," Chauvin said in a prepared statement, adding that Keane is "returning her focus to her primary responsibilities."
PSEG continues to search for a permanent president and chief operating officer for the Long Island division, Chauvin said.
Keane in April replaced Eichhorn, who had served as president and COO since 2017. PSEG took over management of the Long Island grid in 2014, under a contract valued at more than $73 million a year, including performance incentives.
Eichhorn came under criticism from the Long Island Power Authority and its board of trustees in the aftermath of Isaias, which left more than 535,000 customers without power, some for up to a week. LIPA reports detailed problems with customer communications, estimated restoration times and work assignments, much of it tied to computer and communications problems.
Lyons has been at PSEG since 1981, and has been at the Long Island division from its early days. He previously served as managing director and vice president of construction and operations and senior director and vice president of business services. He also held numerous roles at parent PSEG.
Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.
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