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EQT CEO receives $5.3 million in 2008 compensation

The Associated Press

PITTSBURGH (AP) — Energy company EQT Corp., formerly Equitable Resources Inc., gave compensation of $5.3 million to its chief executive in 2008, crediting him for helping the company increase sales volume, complete three major projects and other factors.

Murray S. Gerber was paid a salary of $649,036, a special cash bonus of $925,012 that was not paid in 2007 and a performance-based bonus of $1.9 million, according to the company's proxy filed with the U.S. Securities and Exchange Commission Thursday.

Gerber received other compensation of $96,403 that included a payroll and contribution deduction plan and perks that included $15,256 for financial planning and $8,940 for annual country and dining club dues.

He also received $1,771,309 in what EQT estimates to be the fair value of stock grants awarded in two payments last year.

The cash bonus was given in recognition of Gerber's "leadership in transitioning the company to an integrated energy company," the company said.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, 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, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.

EQT said its key 2008 results include achieving earnings per share of $2, an increase in natural gas production sales volume of 12 percent from 2007, completion of three major projects and being added to the Standard & Poor's 500 index.

The company said it agreed with Gerber's assessment that the performance on long-term financing, price risk management and Equitable Gas Co. initiatives exceeded expectations.

However, the compensation committee said the difficult economy in 2008 "made performance on the initiatives more complex than initially anticipated."