PG&E shareholders to pay pension for retiring CEO

AP News
Posted: Apr 25, 2011 6:49 PM
PG&E shareholders to pay pension for retiring CEO

Pacific Gas & Electric Corp. says shareholders will pay for the entire $35 million retirement package awarded to its outgoing CEO, rather than asking ratepayers to foot a portion of the bill.

PG&E Chairman, chief executive and President Peter Darbee will retire at the end of April with about $9.6 million in pension benefits, plus additional stock-based compensation.

His departure follows months of upheaval after one of the company's natural gas pipelines exploded in a San Francisco suburb in September, killing eight and destroying 38 homes.

The corporation's board of directors voted Monday to amend Darbee's pension benefits after state officials, including Gov. Jerry Brown, stated publicly that ratepayers should not be on the hook for his retirement package. State and federal investigations into the blast continue.