Press Release - Thursday, October 19, 2006
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Quinn Study Reveals Ameren Execs Could Share $213 Million in Stock Awards
(MARION) - TODAY Lt. Gov. Pat Quinn will release a study of compensation enjoyed by Ameren's five highest-paid executives, who collected more than $7 million last year -- and are poised to share a whopping $213 million in company stock if their proposed rate hike boosts the stock price.
"Last year, Ameren's top five executives took home a grand total of $7.4 million," Quinn said. "But apparently these millionaires still can't make ends meet. So they're demanding up to 55% more from their Illinois customers - a move that could put nearly $12 million more in their overstuffed pockets this year alone."
A nine-year statewide freeze on electric rates will end in December of this year. Last month, the Illinois Commerce Commission announced the results of a "reverse auction" of electric power providers which would result in painful rate hikes of 40% to 55% for Ameren's Illinois customers next year.
Quinn's study found that Ameren prepared for the expected rate hike—and resulting stock price surge - by creating a new incentive plan for its upper-echelon executives and directors.
Under the new plan, Ameren issued 4 million new shares of stock - worth more than $213 million in today's market - to create financial incentives for "those individuals who are and will be responsible for the Company's future growth," according to documents Ameren filed with the Securities and Exchange Commission. If the stock price rises substantially - a likely outcome if the proposed rate hike goes through - top execs will be rewarded with millions of dollars worth of stock.
"Clearly, these Ameren millionaires expect this rate hike to boost the stock price into the stratosphere - and put even more millions directly into their pockets," Quinn said. "They want to charge their Illinois customers a rate that is 50% higher than they charge people in Missouri. That's just wrong."
"An Illinois worker earning the minimum wage, $6.50 an hour, would have to work six full days to pay the extra $312 the projected rate increase would cost the average household in this area next year," Quinn said. "Ameren CEO Gary Rainwater makes that much money in 20 minutes on the job. Clearly, these millionaire executives have lost touch with the financial realities facing average families in the Land of Lincoln."
In his analysis of Ameren executives' compensation, as detailed in corporate documents filed with the Securities Exchange Commission, Quinn found the company also paid more than $1.3 million to a handful of children, siblings, wives and brothers-in-law of the powerful utility giant's top officers.
Quinn is urging the Illinois General Assembly to extend Illinois' electric rate freeze. "During the nine-year rate freeze, Ameren's profits have doubled," Quinn said. "It's time for consumers to take a stand against corporate greed. The General Assembly needs to take action to protect consumers from this outrageous rate increase."
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