The compensation package for American Electric Power's chief executive rose 22 percent to $8.7 million in 2010 after his performance-based cash bonus was reinstated, according to Associated Press calculations of data contained in a regulatory filing.
AEP Chairman and CEO Mike Morris earned a performance bonus of $1.6 million after the utility's 2010 earnings per share exceeded a predetermined target. It also completed the year without a work-related fatality.
Morris received a base salary of $1.3 million and stock awards valued at $5.3 million, the company said in a Securities and Exchange Commission filing.
His other compensation totaled $512,969, which included $444,737 for personal use of the company's aircraft, $56,941 in matching funds for retirement savings plans and $10,550 for financial services.
In 2009, Morris earned a base salary of $1.3 million, stock awards totaling $5.3 million and $572,230 in other compensation.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits, making the AP total different in most cases than the total reported by companies to the SEC.
In the filing, AEP said Morris guided the company through difficult times because of reduced demand for electricity despite favorable weather conditions. Industrial sales improved at the end of the second quarter but commercial sales were flat much of the year.
The Columbus, Ohio, company restructured its operations and cut the size of its work force to reduce expenses.
For the year, AEP's reported net income of $1.21 billion, or $2.53 per share, compared with $1.36 billion, or $2.96 per share, in 2009.
Excluding one-time items, earnings were $3.03 a share, which exceeded the predetermined target of $3 a share.