Energy provider Dominion Resources CEO Farrell’s compensation falls to $10.4 million in 2009

Dominion Resources CEO Farrell made $10.4M in 2009

RICHMOND, Va. — Dominion Resources Inc. CEO Thomas F. Farrell II made $10.4 million last year, about 10 percent less than the previous year as the energy provider’s profit fell in the weak economy, according to a calculation by The Associated Press based on government filings.

Last year, the Richmond utility company’s profit fell about 17 percent to $1.5 billion compared with the previous year and revenue fell about 7 percent to $15.1 billion. Its operating or adjusted earnings grew more than 5 percent to $1.94 billion.

Farrell’s salary rose less than 1 percent to $1.2 million, and his performance-based bonus fell nearly 18 percent to $5.5 million. The value of his stock options and stock awards was flat at about $3 million.

The 55-year-old, who has served as chairman, president and chief executive officer since April 2007, was also given other compensation worth $649,754, which included personal flights on company-owned planes valued at about $51,000, and $452,501 in dividends paid on restricted stock.

In 2008, Farrell’s compensation was valued at $11.6 million.

Dominion, which produces electricity, natural gas and oil and operates the nation’s largest natural gas storage system, has operations in Connecticut, Illinois, Indiana, Maryland, Massachusetts, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, West Virginia and Wisconsin.

It also announced that it will hold its annual meeting on May 18 in Richmond, where shareholders will elect 11 directors. Dominion shareholders also will consider three shareholder proposals, including a company goal of 20 percent renewable electricity energy generation by 2022 and reject plans to build a third nuclear reactor at its North Anna Power Plant in Louisa County, Va.

The Associated Press formula is designed to isolate the value the company’s board placed on the executive’s total compensation package during the last fiscal year.

It 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 don’t include changes in the present value of pension benefits, making the AP total different in most cases than the total reported by companies to the Securities and Exchange Commission.