City Council to Reconsider Utilities' CEO Compensation
After initial discussions in February, City Council will consider a revised Utilities Board personnel committee proposal for a reduced pay adjustment phased in over three years for Colorado Springs Utilities CEO. The proposal to be decided on at the April 8 Council meeting would eliminate the CEO’s performance incentive and increase the base salary. Total compensation would increase by 8.8 percent in 2014, 9.3 percent in 2015 and 8.5 percent in 2016.
“We listened to customers who were not comfortable with the size of the original proposed pay adjustment. This smaller increase would be phased in over three years,” said City Councilwoman Jan Martin.
In alignment with Board compensation policy, the goal is to pay employees at the market 50thpercentile, or median. An executive compensation study shows that the CEO’s total compensation is 44 percent below the market median. Median total compensation is $622,071 compared to the CEO’s total compensation of $346,906, the result of not increasing his pay for seven years.
After the phased-in change over three years, total compensation would be $447,175 — 28 percent below the market median.
“It’s important to make the CEO’s pay more competitive with similar utilities. Retaining and attracting qualified leadership is critical to maintaining the reliable service, reasonable rates and excellent customer service that our customers have come to expect,” said Martin. “A top 10 percent raking in customer satisfaction in the United States by J.D. Power and Associates doesn’t happen without strong Utilities leadership.”
Additional details of the proposal can be found at: www.springsgov.com/Agendas.aspx?AMID=1595, click on View Live & Archived Meetings.