21/11/2007 - 15:18

Western Power resolves CEO bonus controversy

21/11/2007 - 15:18

Bookmark

Upgrade your subscription to use this feature.

The dispute over Western Power chief executive Doug Aberle's annual bonus has been resolved, following negotiations between the utility's chairman Peter Mansell and energy minister Francis Logan.

Western Power resolves CEO bonus controversy

The dispute over Western Power chief executive Doug Aberle's annual bonus has been resolved, following negotiations between the utility's chairman Peter Mansell and energy minister Francis Logan.

Mr Logan refused to accept the $110,681 annual bonus initially proposed last month by Western Power's board. He and Mr Mansell have since negotiated a compromise that will see Mr Aberle paid a $99,854 bonus.

The unusual dispute arose because Mr Logan has to approve bonuses paid to the chief executives of the four entities that emerged from the old Western Power - retail arm Synergy, electricity generator Verve Energy, regional business Horizon Power and the new Western Power as the transmission arm.

Mr Mansell said the minister and the board "had some different views but very much around the edges".

However he accepted that the process could be improved. "It was a less than ideal way to do it, I agree."

Travel commitments by Mr Mansell and the minister meant the issue could not be resolved prior to the tabling of Western Power's annual report in parliament.

The report disclosed that Mr Aberle was paid a base income of $380,000 last financial year. He was also paid a $14,140 bonus for the 2006 financial year and the board recommended a $110,681 bonus for 2007.

Mr Mansell said the bonus was based on several performance indicators, including Western Power's financial results, its safety record, reliability of power supplies, customer perceptions and staff satisfaction.

Mr Mansell said the board and the minister were both happy with final outcome.

By way of comparison, Synergy chief executive Jim Mitchell was paid a base salary of $350,000 and was awarded an annual bonus of $116,000 for his performance during the year.

Synergy's annual report disclosed that Mr Mitchell's annual bonus can be up to 27 per cent of his base salary.

Horizon Power chief executive Rod Hayes was paid a total of $456,000. This did not include a bonus but did include allowances for living in Karratha.

Verve did not declare an annual bonus because it had two chief executives - John Lillywhite left mid year and was replaced by former Alcoa executive Shirley In't Veld.

This week's edition of WA Business News includes a detailed report on CEO remuneration in Western Australia.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options