PPL Chief's Compensation Slips 3.6 Percent In 2008

ERNEST SCHEYDER

NEW YORK (AP) — The chairman, president and chief executive of energy and utility holding company PPL Corp. received compensation valued at $5.6 million in 2008, a 3.6 percent decrease from the previous year, according to an Associated Press analysis of data filed with regulators.

The Allentown, Pa.-based company paid James H. Miller $1.1 million in base salary, up 9.6 percent from the previous year.

Miller did not receive a performance-based cash bonus in 2008, though in 2007 he received $1.6 million.

PPL awarded Miller $59,109 in perks, including $11,420 in financial planning, $6,900 in matching 401(k) contributions and $13,000 for serving on the board of an organization affiliated with the company.

But the bulk of his compensation came in the form of stock- and option-based awards valued at $4.4 million when they were granted in 2008, up 40 percent from similar awards granted during the previous year.

However, the stock awards are now worth much less due to a drop in the company's share price, and the options are currently "underwater." The exercise price on about $1.2 million worth of options is $47.55, well above the stock's Wednesday closing price of $28.74. That means the options are currently of little value absent a major rebound in share price.