AEP gives CEO candidates incentives to stick around
Written on August 11, 2010
American Electric Power Company Inc. is taking extra steps to make sure its choice to succeed CEO Mike Morris doesn’t spark the departure of top talent.
The Columbus-based utility this week said it’s awarding 41,380 restricted stock units each to four executives in contention to replace Morris when he retires at the end of 2011. The executives are:
• Nicholas Akins, executive vice president of generation.
• Venita McCellon-Allen, president and COO of Southwestern Electric Power Co.
• Robert Powers, president of AEP Utilities.
• Brian Tierney, executive vice president and CFO.
Spokeswoman Melissa McHenry said the units will vest in three equal installments on Aug. 3, 2013, 2014 and 2015, provided the executives remain with AEP. Based on the company’s recent stock price, the units are valued at about $1.5 million for each executive, but that could change over the next five years payday loan.
Each executive, McHenry said, is a contender for the CEO’s job but there’s no guarantee any one of them will be chosen next year. American Electric Power (NYSE:AEP) has an external search consultant on hand and could look at additional internal candidates, she said.
“We awarded the restricted stock based on their value to the corporation and the contributions they’ve made,” McHenry said.
The company’s succession planning has been at the center of one key departure. Tierney’s predecessor, former CFO Holly Koeppel, left the company in September after being told she won’t be considered for the top job.
AEP serves customers in 11 states. The company last year earned $1.36 billion on $13.5 billion in revenue.
Filed in: online, technology.