FPL Executives Keep Merger Bonuses

["Sandy Perle" <sandyfl@EARTHLINK.NET>]

FPL Executives Keep Merger Bonuses

NEW ORLEANS (AP) Apr 8 -- FPL Group's failed merger with Entergy 

Corp. was a bust for the Florida utility's shareholders, but FPL's 

top executives exited the deal like lottery players who just hit the 

jackpot. 

In an unusual move even in this day of multimillion-dollar executive 

salaries and bonuses, FPL chairman and chief executive James 

Broadhead and his seven top lieutenants will keep $60 million in 

merger-related bonuses paid to them in cash in December after 

shareholders approved the deal. 

Broadhead's take alone from the failed merger was $21.1 million, 

which came on top of his normal salary of $974,000, along with $1.1 

million in performance bonuses and $13.5 million in accrued 

retirement benefits. Broadhead's total pay package in 2000 was $36.7 

million. 

The merger-related bonuses were part of a pre-existing, long-term 

incentive program for FPL executives that potentially would have been 

paid to them over a period of years as cash bonuses and extra stock 

options based in part on the company's financial performance. The 

better the company's performance, the bigger the bonuses. 

``Change of control'' clauses in the executives' contracts, which are 

common in American corporations, triggered the early payments as an 

incentive for the executives to stay with FPL after the merger even 

though their future with the new combined utility might be uncertain. 



What made the FPL payments highly unusual was that the lump sums were 

paid well in advance of the deal's completion, which was expected in 

late 2001. Most comparable ``change of control'' payments at other 

companies, including Entergy, are triggered by the closing of an 

acquisition. 

``I certainly can't recall the last time I saw something like this,'' 

said Gregory Phelps, a John Hancock Patriot Funds manager whose firm 

owns about 100,000 shares of FPL preferred stock. He said the 

bonuses, and the refusal by FPL executives to return the money, 

blemished the otherwise good reputation enjoyed by the management 

team among investors. 

Entergy executives did not receive any bonuses for the merger 

attempt, but Entergy president Don Hintz and Entergy Nuclear 

Operations chief executive Jerry Yelverton were in line for $5.52 

million in retention incentives that would have been paid in 

installments at the close of the deal and on the first three 

anniversaries. 

Entergy chief executive Wayne Leonard would not have received any 

bonuses or retention payments, although he stood to double his annual 

$836,538 salary after becoming chief executive officer of the 

combined utility. 







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Sandy Perle					Tel:(714) 545-0100 / (800) 548-5100   				    	

Director, Technical				Extension 2306 				     	

ICN Worldwide Dosimetry Service		Fax:(714) 668-3149 	                   		    

ICN Pharmaceuticals, Inc.			E-Mail: sandyfl@earthlink.net 				                           

ICN Plaza, 3300 Hyland Avenue  		E-Mail: sperle@icnpharm.com          	          

Costa Mesa, CA 92626



Personal Website: http://sandyfl.nukeworker.net

ICN Worldwide Dosimetry Website: http://www.dosimetry.com



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