AES Disputes Claim on Stock-Based Pay

AES Corp. on Wednesday disputed California Treasurer Phil Angelides’ assertions that the company paid too much to its top five executives.

AES said equity compensation for its top five executives in 2003 was 19% of total equity compensation granted to all workers, not the 62% cited by Angelides this week.

The company also said stock-based pay was tied directly to the company’s performance. “Since 2002, we have had a new management team in place, and our stock has been performing well with an annual equivalent return of 154% from the end of 2002 through Nov. 9, 2004,” AES said in a statement.

Angelides spokesman Mitchell Benson said the state treasurer’s office was reviewing the discrepancy with AES and had no immediate comment.

Two other companies criticized by Angelides, Omnicare Inc. and UnitedGlobalCom Inc., have declined to comment. The fourth, UnumProvident Corp., said Tuesday that Angelides was off base because the proportion of stock-based pay going to executives was skewed by more than $17 million of severance paid to a former chief executive.

Angelides, a member of the governing boards of the California Public Employees’ Retirement System and the California State Teachers’ Retirement System, had called on shareholders in these companies to challenge the amount of stock-based pay to top executives.