Submitted by [deleted] t3_z629ap in Pennsylvania
melranaway t1_ixzzqyz wrote
Reply to comment by pa_bourbon in The danger of for-profit water companies such as Aqua America by [deleted]
We all know they don’t use the minimum fee to upgrade their infrastructure…. That’s what raising rates are for… sorry I have a pessimistic tone… we got nailed by penelac and their raising rates to help upgrade their infrastructure…
pa_bourbon t1_iy04kwc wrote
I work close to this industry. The minimum monthly charge and the commodity usage charges work together to provide the revenue for the utility. The rate of return is capped by the Pennsylvania public utilities commission. It’s a package deal.
Fantastic_Chemical67 t1_iy0aac0 wrote
Whats the compensation for the CEO of one of these private water utilities?
pa_bourbon t1_iy0c2cy wrote
It will vary by company. The larger the company, the higher the comp. Same as any other industry. I do know one utility CEO personally. This CEO’s compensation is 40% salary and 60% bonus and stock awards at the discretion of the board based on annual and multi year goals. These goals include not just financial measures, but measures of safe operations (employee injury counts) as well as reliability and customer service/satisfaction metrics.
sprcpr t1_iy0ly6b wrote
The boards are packed with friends of a you do me and I'll do you nature. So it's 2mil for a base pay and another 8mil for bullshit metrics that can he altered or ignored.
pa_bourbon t1_iy0msj6 wrote
The CEO I know made significantly less than the figures you quoted. One of the largest electric utilities in the country - Southern California Edison - their ceo made $3.16M in total comp in 2021. That CEO ran a $14.9B company that year. Doesn’t seem out of whack to me.
Only 629K of that 3.16M was base salary.
--Cr1imsoN-- t1_iy1hao7 wrote
"only" lmao
Fantastic_Chemical67 t1_iy24mam wrote
Imagine “only” making 600k a year by price gouging people that have no choice.
Fuck private utilities and their CEOs.
pa_bourbon t1_iy28cik wrote
This viewpoint intrigues me. What do you think a fair salary is for someone leading a $15 Billion company, in Southern California?
If you hate this comp package, don’t even look at bank CEO pay.
Reality check - senior execs get paid a lot to lead these companies.
Fantastic_Chemical67 t1_iy3d5yl wrote
I don’t think utilities should be billion dollar private companies.
Necessary services and infrastructure shouldn’t be price gouged by worthless MBAs pretending their adding “shareholder value”.
A fair salary is one where the CEO doesn’t exist.
Fuck private utilities.
pa_bourbon t1_iy3f73o wrote
Got it. So the government should take over a $15 Billion company and have no one run it day to day. I’m sure that will work out perfectly.
Fantastic_Chemical67 t1_iy3g1uf wrote
Cope and seethe.
People shouldn’t have to be price gouged for services necessary for living.
The cost to sustain your shithead CEO buddy’s total compensation is thousands of hardworking households water bill.
There isn’t a single public position that pays close to what he makes and there shouldn’t be.
pa_bourbon t1_iy3kbrq wrote
And then we wonder why government owned utilities are poorly run and underinvested in their infrastructure and need to be bought out to rescue them from the mismanagement.
Somehow we’ve come full circle here.
Fantastic_Chemical67 t1_iy3magv wrote
I don’t wonder why.
Literally it’s because of starve the beast policies enacted by Republicans looking to privatize utilities so people like your buddy can suck on the teat of hard working Americans.
Private utilities are worthless middle men that jack up prices for profit and people like your CEO buddy are leeches on society.
pa_bourbon t1_iy3og4a wrote
Explain pittsburgh water and sewer authority then. A city run by democrats and the utility is woefully underinvested. Not everything is politics.
Most of the poorest run and underinvested utilities are in big cities. Big cities trend blue…..
Fantastic_Chemical67 t1_iy4el29 wrote
Yeah that turns out so well for municipalities that decide to privatize their utilities.
Privatizing public services is almost always a complete disaster because there is no market competition for a utility.
pa_bourbon t1_iy4iobv wrote
Got it. You’re one of those people that prefers your bill to be cheap and to kick the can down the road to a future generation to pay for the problems that your generation neglects. This is what the baby boomer generation did to most of our government owned utilities by the way.
It’s a very short sighted strategy that government owned utilities use. Because by the time the bill comes due, today’s politicians will be gone from office.
But keep whining about greed, etc.
No matter how much you want it to be cheap and free, reliable utility service costs real money. Those costs are increasing like costs are everywhere else. For some reason we thought it was a good idea to close a bunch of nuclear power plants around the world, so electricity is only going to get more expensive.
Fantastic_Chemical67 t1_iy4wmo3 wrote
Yeah if only the altruistic millionaire CEO could save us from ourselves by raising rates astronomically and reaping millions in compensation.
Average CEO tenure is less than 5 years. Less time than most politicians stay in office btw.
Seriously get bent. Your ideology is gross.
gslavik t1_iy1kxbt wrote
Shouldn't the employees who follow safety guidelines get that bonus? Or even their managers who make sure safety guidelines are followed?
pa_bourbon t1_iy1leo4 wrote
Most utilities will have employee annual bonuses tied to similar safety metrics among others. A safety culture needs to be enforced at all levels of an organization, so that metric is usually in the bonus calc for all levels of employee.
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