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Wisconsin Energy CEO 2008 Total Compensation $8.3M

The Associated Press

DENVER (AP) — Wisconsin Energy Corp.'s top executive received total compensation valued at $8.3 million for 2008, up 14.6 percent largely due to an increase in stock and option awards, according to an Associated Press analysis of a regulatory filing.

Gale E. Klappa, Wisconsin Energy's chairman, president and chief executive officer, received stock and option awards valued at $4.6 million when granted in January 2008, a 21.6 percent increase from 2007, according to a Securities and Exchange Commission filing on Thursday.

The Milwaukee-based utility's stock price fell 12 percent in 2008 as the recession led to an overall decline in retail electricity sales. The options granted to Klappa in 2008 have an exercise price of about $48, above the stock's current price of around $41.

In 2008, Klappa received $1.13 million in base salary, $2.3 million in performance-based bonuses and $261,040 in benefits such as insurance and retirement contributions.

The previous year, he earned $1.1 million in base salary, $2.2 million in performance-based compensation, $223,749 in benefit compensation and stock and options valued at $3.8 million when granted in January 2007.

The AP's calculations of total compensation include salary, bonus, performance-related incentives, perks, any above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. They may vary from totals listed in the summary compensation table in the company's proxy filed with the SEC.

In its proxy filing, Wisconsin Energy said its compensation committee analyzed data supplied by compensation consulting firm Towers Perrin to determine a compensation package for each executive.

Wisconsin Energy said earnings from continuing operations totaled $358.6 million, or $3.03 per share, in 2008, up 6.7 percent from $335.6 million, or $2.84 per share in 2007. Annual revenue rose to $4.43 billion.

(This version CORRECTS SUBs last graf to correct percentage of y-o-y earnings increase.)