NiSource CEO's 2008 Compensation Rises 37 Percent

According to NiSource's filing, the compensation committee benchmarks its executive pay practices against a group of companies that includes TXU Corp., Duke Energy Corp. and Aquila Inc.

The committee also has established a guideline for Skaggs to own shares having a value of five times his base salary in order to align his interests with those of shareholders.

In 2008, NiSource earned $79 million, or 29 cents per share, down from $321.4 million, or $1.17 per share, a year earlier. Revenue rose to $8.87 billion from $7.87 billion.

Shares fell 42 percent in 2008 to close the year at $10.97.