PG&E claims shareholders will pack Darbee’s golden parachute
April 26, 2011
• Says it won’t pass on the costs to its customers
• ‘Renewing public faith in PG&E is critical to our future’ - Cox
The $34.7 million golden parachute that Peter Darbee is getting to clean out his office at Pacific Gas & Electric Company will be paid for by the company’s stockholders, not its customers, the embattled utility claims.
PG&E Corporation's (NYSE: PCG) Board of Directors has voted to amend the pension benefits for retiring Mr. Darbee to provide that all pension benefits will be funded by the corporation's shareholders.
"With Mr. Darbee's decision to retire, the Board is fully committed to taking steps that demonstrate the company is moving in a new direction," says Lee Cox, the Board's lead director and who has been designated to replace Mr. Darbee on an interim basis.
"Renewing public faith in PG&E is critical to our future,” says Mr. Cox.
Mr. Darbee leaves an embattled company, hammered by critics of its September 2010 gas pipeline explosion in San Bruno that killed eight people and destroyed 38 homes, the company’s rapid-fire installation of so-called “smart” meters to measure customers’ consumption of gas and electricity, and its spending of $46 million in an unsuccessful ballot effort to convince Californians to ban local governments from forming municipal power systems that would compete with PG&E.