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May 4, 2011

Exelon hasn't set pay for Constellation's Shattuck

When Black & Decker's Nolan Archibald agreed to sell the company in 2009 and become executive chairman of the combined Stanley Black & Decker, he had already negotiated the terms of his new employment in fabulous detail. Archibald will make dozens of millions of dollars in "cost synergy bonus" depending on how well and how much he cuts costs at the merged company. The Archibald deal was agreed to and announced at the same time as the merger itself.

Constellation Energy's Mayo Shattuck is making a similar move in that company's buyout by Exelon Corp. He'll become executive chairman of the combined company, according to the announcement, keeping his family in Maryland but traveling a lot to Exelon's headquarters in Chicago. As we reported, Shattuck isn't getting any change-of-control loot from the Exelon merger beyond accelerations of options and so forth -- about $20 million.

So what deal did he negotiate with Exelon? What's he going to make in his new position? Why didn't they announce his terms as Black & Decker did with Archibald in the Stanley buyout?
Because he hasn't negotiated them yet, the company says.

Shattuck's "post-merger compensation has not yet been established and is not part of the merger agreement," Constellation spokesman Larry McDonnell said in response to my query.

My take: There are two possible reasons for Shattuck not to have nailed down the terms of his new job. 1) It might incite negative public opinion as the companies try to get approval for the merger. 2) Shattuck may already be thinking about moving on, perhaps to Wall Street. If the merger goes through next year, I wouldn't expect him to stick around very long at Exelon.

Posted by Jay Hancock at 5:05 AM | | Comments (1)
Categories: BGE/electricity
        

Comments

Shattuck is afraid of negative publicity? Isn't that like Quasimoto being afraid people will see his hump? If ANYONE has generated bad publicity for themselves over the past 10 years it's Mayo Shattuck.

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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