Senators want probe of Constellation compensation

Two Maryland state senators have asked the state attorney general to investigate the legality of compensation given to Constellation Energy CEO Mayo Shattuck.

State Sens. Jamie Raskin and Jim Brochin sent a letter dated Thursday to Maryland Attorney General Douglas Gansler asking if there are legal remedies for "egregious compensation practices" at Constellation, following a year in which the wholesale power generator was nearly forced into bankruptcy by a liquidity crisis.

The collapse of credit markets coupled with extreme volatility in the energy markets sent Constellation's stock price tumbling from $107.97 to $13 and its earnings plunging last summer.

The senators also ask if the General Assembly would have the power to regulate compensation practices at Constellation. The senators' letter cites Constellation's 2009 proxy statement that Shattuck was paid almost $16 million last year.

Constellation spokesman Rob Gould said Thursday night that the board rejected bonuses this year for top executives, including the CEO, "demonstrating pay for performance works."

According to calculations by The Associated Press in April, Shattuck took home $5.7 million in 2008, representing a nearly 56 percent drop in value from his 2007 compensation. AP's formula 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 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.