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Pinnacle West CEO's Compensation Falls 28 Percent

The Associated Press

NEW YORK (AP) — Pinnacle West Capital Corp.'s chief executive and chairman William Post received a compensation package in 2008 that was 28 percent smaller than the previous year, according to an Associated Press analysis of figures reported in a regulatory filing.

Post received compensation totaling $3.2 million in 2008, compared with $4.4 million in 2007. The reason for the drop in compensation was a lack of a performance-based bonus last year. Post received a performance-based bonus of $1.3 million in 2007, but none in 2008.

Last year was Post's final full year as chairman and CEO of the Phoenix-based company. He will retire from those positions on April 30 and be succeeded by insider Don Brandt. Post will continue to serve as a director.

His salary remained unchanged at $950,000. Post received $35,281 in above-market earnings on deferred compensation in 2008, compared with $22,862 in 2007.

Post also received perks valued at $32,390 in 2008, a 6 percent increase from the previous year. Those perks included a contribution to a 401(k) retirement account, life insurance premiums and a car allowance.

In 2008, Post received 3 percent more in stock options and restricted stock awards than he was given a year earlier. He received $2.2 million in stock and option awards.

Post's compensation declined as the company's profit shrunk during the year. For the full-year, the electricity and energy provider reported a profit of $242.1 million, compared with $307.1 million in 2007.

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, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.