Duke Energy CEO to Get $44 Million in Severance for 3 Days of Work

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By Rob Wile

The Wall Street Journal's Joann Lublin, Dan Fitzpatrick and Rebecca Smith have a shocking scoop today on the highly brief but highly lucrative term Bill Johnson served as CEO of a newly created utility giant.

According to their story, Johnson stands to receive up to $44.4 million in severance pay despite having served just three days leading Duke Energy, which recently bought out Johnson's old firm, Progress Energy, to create a utility that will serve more than seven million customers in the Southeast and Midwest.

According to securities filings, the reporters write, Johnson signed his employment contract on June 27, just ahead of the merger's July 2 close. He resigned his post at 12:01 a.m. on July 3.

The reporters quote sources familiar with the deal that "the board decided [Johnson] wasn't right for the job and instead gave it to Jim Rogers, who ran Duke before the deal."

This, despite the fact that people had known for 18 months Johnson would become CEO of the new firm.

Johnson apparently had no idea the rug was being pulled.

"Mr. Johnson was surprised by the outcome and had very little time to consider the terms of his exit package, one person familiar with the matter said. The Duke spokesman said he believed Mr. Johnson had rented a house in Charlotte but never actually moved in."

But Johnson stands to receive the pay package as a lump-sum payment "as long as he cooperates with Duke and doesn't disparage his former employer," according to a filing cited by The WSJ.

Read the full story on WSJ.com

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lowee2855

The corporate gang at Duke are among the highest compensated corporate gangsters in America.

http://biggerfatterpolitics.blogspot.com/2014/03/list-of-north-carolina-coal-plants.html

March 24 2014 at 2:51 AM Report abuse rate up rate down Reply
lowee2855

The corporate gang at Duke are among the highest compensated corporate gangsters in America.

March 24 2014 at 2:50 AM Report abuse rate up rate down Reply
Jake

Just plain old Bull$H!T! This has to stop. The hemmoraghing has gone too far and on too long. Also, these CEO's & COO's need to be the first ones let go when a company has to lay off thousands of workers. They aren't doing their job if they have to lay that many people off! And, everyone sees through the BS - your just trying to make the "bean counters" " bottom line" appear better to investors & the board! F all of you ba$tards for bleeding everyone dry. You didn't do a good enough job if that's how you have to make the "books" look good! Your head should be the first one chopped!

July 11 2012 at 8:00 PM Report abuse rate up rate down Reply
Artie

The writer and the title of this article are misleading. While I'm no fan of over compensated CEO's. The $44 million isn't for 3 days of work. The article writer is an imbecile for suggesting this in the title of the article.

July 10 2012 at 10:01 AM Report abuse -1 rate up rate down Reply
robalorick

And once again the sharholders get fleeced. Thanks all you Democrats!

Rick

July 10 2012 at 7:47 AM Report abuse -1 rate up rate down Reply
ljkht

So guess the consumers take another hit

July 10 2012 at 6:30 AM Report abuse +1 rate up rate down Reply
Dave

How come the Dems on here turn everything into a Republican thing. I am neither but...... what do they have to be proud of? Nancy Pelosi? Harry Reid? President/excommunity organizer Obama?. Please.

July 10 2012 at 6:02 AM Report abuse -1 rate up rate down Reply
kng20

44 million ? Only in America. How can this be described other than legal robbery. This is the kind of outraugous stuff that has people that are struggling to pay their electric bill. One is lost for words to describe the anger and frustration when you hear stuff like this. People frezzing in the winter because they can't turn up the heat due to tight budgets. Sweating in the summer because its to expensive to run air conditioning. Does he give a crap? He is probable off on some lavish vacation enjoying $ 1000.00 bottles of wine. Am I jelous? No. I would have no problem with this if he would have actually earned that money for doing something that profited the company. Sick - vulgar - is what this is.

July 10 2012 at 5:25 AM Report abuse +2 rate up rate down Reply
Pumpkinpie

My kind of Republican HARD WORK.

July 10 2012 at 3:06 AM Report abuse rate up rate down Reply
buzard1bait

I do hope that the PUCO remembers this when DUKE comes before them for a rate increase.

July 09 2012 at 11:24 PM Report abuse +1 rate up rate down Reply