Calif. bill would cap utility CEOs' salary at 2x governor's

[Newsjock]

Source: San Francisco Chronicle

A potential bill under discussion in Sacramento would limit executive compensation at California utility companies - or at least change who pays.

The proposal, pushed by several small-business groups, would place a soft cap on the amount that Pacific Gas and Electric Co., Southern California Edison and San Diego Gas and Electric Co. could pay their top executives. The cap would be set at $348,000, twice the salary of California's governor.

The utilities could still choose to pay their people more. But the money would have to come from company profits, not from the monthly bills of utility customers.

"Let the shareholders pay whatever they want - but not the ratepayers," said Bob Gnaizda, counsel for the National Asian American Coalition, the Black Economic Council and the Latino Business Chamber of Greater Los Angeles. "It's time for the ratepayers to say 'no.' "

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/01/27/BUS61MV1EL.DTL&tsp=1

[FreakinDJ]

1. Makes TOO much sense - they'll never pass it

[UpInArms]

2. and just where do they think "profits" come from?

But the money would have to come from company profits, not from the monthly bills of utility customers.

the rates that customers pay - and then you subtract the expenses - and voila! profit is what is left

so charge the customer more - fewer expenses - and ... voila! again!

huh?

[FreakinDJ]

4. Calif PUC regulates the amount of "Mark Up" above "Cost"

Since Utilities buy power in "Blocks" at $.03 per Kw and charge customers as much as $.13 per Kw already

what they are saying is the Utilities will not be able to pass on the cost of exorbitant Executive Pay packages

[UpInArms]

6. thanks!

that information was helpful - hopefully this will work out then

[Donald Ian Rankin]

3. Have they gone mad, or have I?

My understanding is that company profits = income - costs.

So how is money coming from "the company profits" different from money coming from "the ratepayers"?

[Initech]

5. We need a national cap on publicly traded CEO salaries.

Until we get the economy back on track no company should have a 2,778:1 pay ratio. I'm for this.