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Constellation says CEO Shattuck earned $12M in 2010, SEC says $15.7M

Mayo Shattuck, CEO of Constellation Energy

Constellation Energy Group CEO Mayo A. Shattuck III earned $12 million in 2010, according to the company.

Or, Shattuck earned $15.7 million, according calculations used by Securities and Exchange Commission.

Constellation said Friday that Shattuck earned the same amount last year as he did in 2009, including a base salary of $1.3 million.

Shattuck’s 2010 bonus of $1.7 million was down from 2009’s $3 million.

The SEC includes stock options and a change in Shattuck’s pension plan in its figuring.

The difference, the company said, is in the pay-for-performance model it follows when it grants stock options that are tied to how the company does over a three-year period. The $3.8 million in stock awarded to Shattuck 2010, for example, will not show up as compensation until 2012.

The company will also have to meet performance goals, and Shattuck will have to hold the shares until he retires. Shattuck became eligible for early retirement on Dec. 31, according to the company’s SEC filing.

“The company continues to perform well and the strategic priorities for 2010 were well executed,” Constellation spokesman Lawrence McDonnell said in a statement. “Executive compensation here is by no means guaranteed. The board’s philosophy is that the management team and the company have to perform at a very high level over several years to ultimately earn long-term incentive awards.”

Shattuck’s pay also includes $39,000 in matching contributions and $84,353 for perquisites. According to the SEC filing, this includes use of company drivers, payment for financial and tax planning, and costs associated with spouse travel and entertainment.

“There was no personal use of private aircraft by Constellation Energy executives during 2010,” the company wrote in the filing.

In 2010, Constellation reported revenue of $14.3 billion, down from $15.5 billion in 2009. The company posted a net loss for the year of $982,600, compared to a net profit of $4.44 billion the prior year.

Company highlights for 2010 included the $1 billion purchase of Boston Generating’s assets, which added 4,300 megawatts of generating capability. Constellation also completed a natural gas plant in Alabama and the Criterion wind power project in Western Maryland.

Subsidiary Baltimore Gas & Electric received Public Service Commission approval last year to roll out its smart grid initiative, which uses two-way communication between power suppliers and upgraded power meters at homes and businesses to reduce electricity demand during peak hours, when power is most expensive. And, regulators allowed the first electric distribution rate increase in 17 years.

Compensation for executives is subject to a “claw back” provision that allows the company to take incentives away if Constellation has to restate financial results or adjust disclosures within three years of the initial report that would change or cancel the incentive, and the executive was “grossly negligent” or “knowingly failed” to prevent the error.

Constellation’s annual shareholder meeting is planned for May 27.