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Compensation Rises 6 Pct For CenterPoint's CEO

The Associated Press

DENVER (AP) — The president and chief executive of utility CenterPoint Energy Inc. received total compensation valued at $4.9 million in 2008, up 6 percent from a year ago, according to a regulatory filing Friday.

A little less than one-half of David M. McClanahan's compensation came in the form of stock and option awards that were valued at $2.06 million when issued in February 2008, the filing with the Securities and Exchange Commission said.

The company's stock has lost about a third of its value since then.

McClanahan also received a base salary of $1.05 million; performance-based compensation of $1.58 million and above-market returns on deferred compensation of $50,115.

Other compensation included $2,908 in tax reimbursements, $110,362 in contributions to savings plans and $70,674 in insurance premiums.

In 2007, McClanahan received total compensation of $4.6 million, including a base salary of $1.02 million, performance-based compensation of $1.4 million and stock and option awards worth nearly $2 million.

The AP's total pay calculations 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.

CenterPoint has scheduled its annual meeting April 23 in Houston where it will vote on a proposed long-term compensation plan and elect directors among other business.

Based in Houston, CenterPoint reported 2008 net income of $447 million, or $1.30 per share, from $399 million, or $1.17 per share in 2007. Revenue rose 18 percent to $11.32 billion.

The company also has estimated a lower profit for 2009, in the range of $1.05 to $1.15 a share. That included an anticipated non-cash pension expense increase of 16 cents per share.