COMPENSATION AT
AQUILA
INTRODUCTION
Utility corporation moved into the market of energy trade after Congress
passed the bill for opening the energy market.
Renamed the brand as Aquilla
CEO,Robert Green, was awarded bonus of $4.5 million for his contibution
in merchant service business
However, Energy market collapsed and Aquilla faced losses. Green resigned
though retaining the bonus
IMPLICATIONS
OF
AQUILA
FAILURE
Staff was furious as they were not sure about their future in the
company whereas exiting CEO was receiving huge amount of
compensation
Decline in compensation as company returned to traditional
utility based model
Between 2002 and 2004 company did not pay any bonuses and
held disastrous financial results accountable for the same.
In 2005 the company paid bonuses to executives in the
multiples of their salary stating retention of executive officers
as the motive behind it.
Thank You