PNM’s top five execs may earn $8.8M
Combined compensation depends on meeting performance targets
PNM Resources’ top five executives could earn $8.8 million in total combined compensation for their work in 2017, most of which is based on whether they met performance goals during the year.
That includes about $2.2 million in base salaries and $6.6 million in benefits and incentive pay, which shareholders will vote on at the company’s annual meeting on May 22 in Texas City, Texas, where PNMR subsidiary Texas New Mexico Power is based.
Total compensation is similar to 2016, when the top five earned about $8.66 million in salaries, benefits and incentive pay. But it’s down from about $10 million in 2015.
PNMR Chairman, President and CEO Pat Vincent-Collawn could earn a total of $4.425 million for her work last year, up from about $3.98 million in 2016.
Only about 23 percent of Vincent-Collawn’s total earnings are from base pay, set at $824,000 last year. The rest is paid in stock options, incentive awards and benefits, most of which she would only receive in future years if she meets performance goals.
Ratepayers are only responsible for about two-thirds of the base salaries paid to Vincent Collawn and the other four top executives, said PNMR spokesman Pahl Shipley. Shareholders pay for all the incentive-based compensation.
“Most of their compensation is ‘at risk,’ because it depends on whether the executives achieved specific goals laid out for them,” Shipley said.
That includes performance targets for shareholder earnings, utility reliability and customer satisfaction. Executives outperformed their earnings targets last year and met reliability goals, but they underperformed somewhat in customer satisfaction, according to the company’s annual proxy statement, filed April 10.
“We’ve redoubled our focus on customer satisfaction this year,” Shipley said. “That’s our No. 1 goal for 2018.”
The company’s executive compensation is largely matched to pay levels for utility leaders around the country.
“We do benchmarking to compare our company with other utilities,” Shipley said. “We’re about at the median for our peer group in the industry.”