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CMS Energy Chief Got $4.2M In 2008 Compensation

The Associated Press

NEW YORK (AP) — Utility company CMS Energy Corp. raised its chief executive's total 2008 compensation about 7 percent, according to an Associated Press calculation of figures disclosed in a filing with the Securities and Exchange Commission.

CEO David Joos received a pay package worth $4.2 million, compared with the $4 million received in 2007, but the bulk of that rise came from a 12 percent bump in restricted stock awards, which have fallen in value as the natural gas and electric utility's stock has slipped slightly since the awards were granted.

These stock awards were valued at $2.2 million when they were granted Aug. 6, 2008. Since then, shares of CMS Energy have fallen 11 percent.

Joos, 56, saw his salary climb 4.5 percent to $1.05 million, compared with $1 million in 2007. He received $971,850 in a performance-based bonus, up 1 percent from last year. The company gave Joos $47,705 in "other" compensation, which included $29,340 in contributions to a deferred compensation plan, $8,280 in contributions to Joos' savings plan and $10,085 related to life and disability insurance payments.

Joos has served as president and CEO since October 2004, and previously served as president and chief operating officer from 2001 to 2004. Compared with the other five officials listed in the filing, Joos is the highest paid executive at the Jackson, Mich.-based company.

The company said it aims to link compensation with rewarding measurable results, competitively attracting talent, providing a fair package and increasing shareholder value.

For the full-year 2008, CMS Energy said its profit, after paying preferred dividends, rose to $289 million, or $1.23 per share, from a loss of $227 million, or $1.02 per share, in 2007. Excluding nonrecurring items, adjusted earnings totaled $293 million, or $1.25 per share. 2007 results include $428 million in losses related to the sale of international assets and charges from restructuring some electric supply agreements. Revenue for 2008 rose 6 percent to $6.82 billion.

Over the course of 2008, shares of CMS Energy fell about 42 percent to close the year at $10.11. They ended Monday's session at $12.07.

The Associated Press compensation formula is designed to isolate the value the company's board placed on the executive's total compensation package during the past 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.