Nice work if you can get it
Tuesday, May 16, 2023 - Posted by Rich Miller
* From 2019…
Anne Pramaggiore, the longtime Exelon executive who suddenly retired amid a federal probe of Illinois political corruption that has embroiled the politically connected company, will receive $7.7 million in benefits she’s entitled to, a company spokesman confirmed.
Pramaggiore, 61, is in line for an $885,000 cash payout and $6.8 million in previously unvested stock awards that accelerate upon retirement, according to a Securities & Exchange Commission filing.
The retirement payout substantially exceeds the $3.7 million she was entitled to receive when she was CEO of Exelon-owned Commonwealth Edison, according to a separate SEC filing. But her promotion last year to senior executive vice president and CEO of all of Exelon’s utilities—including companies in Philadelphia, Baltimore and Washington, D.C., as well as ComEd—more than doubled the value of her retirement package.
* WBEZ today…
Exelon has been paying the legal fees for two now-convicted former Commonwealth Edison executives who were part of a conspiracy to bribe former Illinois House Speaker Michael Madigan, WBEZ has learned.
The move has created an unusual dynamic where, on one hand, the company’s subsidiary, ComEd, is cooperating with federal investigators under a deferred prosecution agreement and paid a $200 million fine for attempting to “influence and reward” Madigan in a long-running bribery scheme.
But on the other, the Exelon-financed legal teams for former ComEd CEO Anne Pramaggiore and former ComEd executive vice president John Hooker spent close to two months telling a federal judge and jury that their clients — and the power company — had done nothing illegal.
Past criminal defendants in Chicago’s federal courthouse have faced multimillion-dollar legal tabs for their defense lawyers. The pro-bono costs associated with former Illinois Gov. George Ryan’s legal defense, for example, have been estimated as high as $20 million.
Pramaggiore and Hooker, at least for the moment, are being spared that burden under an indemnity guarantee spelled out in Exelon’s bylaws, a ComEd spokeswoman told WBEZ.
The company wouldn’t divulge how much it has paid to Pramaggiore and Hooker’s legal teams, which comprised at least five attorneys apiece based on federal court filings. ComEd maintains that no ratepayer dollars are being used for the expense. […]
Though the company statement alluded to the possibility of seeking repayment from Pramaggiore and Hooker, [ComEd spokesperson Shannon Breymaier] declined to answer whether the company, in fact, would pursue reimbursement from the pair.
* Recent Sun-Times OpEd by ComEd CEO Gil Quiniones…
After headline-making trial of former CEO, ComEd is focused on the future
We have seen the headlines about the federal criminal trial of a former ComEd CEO and others. The conduct at the center of the trial is not a proud chapter in our company’s history, but it is one that we own. We’ve enacted strong new ethics policies, enhanced oversight and implemented more rigorous employee training aimed at preventing the prior conduct from happening again.
- 47th Ward - Tuesday, May 16, 23 @ 11:44 am:
Prammagiore should demand a refund from Scott Lassar, assuming it was his idea to put her on the stand. What a disaster that was.
- JS Mill - Tuesday, May 16, 23 @ 11:44 am:
=ComEd maintains that no ratepayer dollars are being used for the expense.=
Isn’t that where their money comes from? If not from ratepayers then who? Santa Claus?
- Rich Miller - Tuesday, May 16, 23 @ 11:45 am:
===then who?===
Likely shareholders.
- Shovel - Tuesday, May 16, 23 @ 11:49 am:
And Madigan’s criminal defense is being paid for by the unions who funded his campaign. So the message is, if you’re going to commit crimes, be sure someone else has to pay for your multi-million dollar, years long defense.
- Three Dimensional Checkers - Tuesday, May 16, 23 @ 11:51 am:
Does ComEd’s bylaws still obligate the company to pay for its executive’s legal defense? You know those private sector folks are obviously so much more morally superior to us government hacks. They might have a good case to get the money back, but Madigan could be dead by the time this gets sorted out with any finality.
- Graybeard - Tuesday, May 16, 23 @ 12:04 pm:
All the money in the world will be cold comfort when Ms. Pramaggiore gets dropped off at the front gates of a federal prison to serve a few years.
- Keyrock - Tuesday, May 16, 23 @ 12:05 pm:
47th - Prammagiore‘s testimony didn’t go well, but given the recordings, Lassar’s choices weren’t good. It was an understandable gamble. But once she told the jury what they believed to be a fib, it was over for her.
- DuPage - Tuesday, May 16, 23 @ 12:22 pm:
===Anne Pramaggiore, the longtime Exelon executive who suddenly retired amid a federal probe of Illinois political corruption that has embroiled the politically connected company, will receive $7.7 million in benefits she’s entitled to, a company spokesman confirmed.===
Illustrates the difference between private sector pensions vs public sector pensions in Illinois.
- Back yo the Future - Tuesday, May 16, 23 @ 12:29 pm:
“If not for ratepayers, then who?”
Shareholders are on the hook for a lot of the expenses of ComEd’s schemes; but I suspect a lot, if not all, of the fees are covered by a liability insurance policy that comes out of the revenue stream ratepayers provide the corporation.
Depending on the terms of the policy, I also suspect that the insurance company will want some money back from the convicted criminals.
I appreciate the position of ComEd to put this all behind them and move “forward”, but this is likely to be an issue for ComEd for years. If you are a shareholder you probably are not too happy with the Board of Directors or these employees so I also suspect some of them will also want any of their money that was spent in this “Springfield lobbying” adventure back from someone.
- Phineas - Tuesday, May 16, 23 @ 12:41 pm:
That sounds like the “Protect Chris Crane’s retirement” plan.
- Stagnacious - Tuesday, May 16, 23 @ 12:47 pm:
This information reframes the dynamics of the case entirely. You always wondered why Hooker and Prommigiore were so willing to go to the mats on this rather than just cut a deal. The decision is far easier if you have highly skilled free representation. Until there’s a verdict.
- JS Mill - Tuesday, May 16, 23 @ 12:51 pm:
But, but in the private sector you just fire people.
I guess that is true unless you get a ton of public subsidies?
- twowaystreet - Tuesday, May 16, 23 @ 2:06 pm:
That is nice work. You’ve cost the company $200 million so we are going to give you $7.7 million in benefits.
- cermak_rd - Tuesday, May 16, 23 @ 2:22 pm:
And now Fred Astaire is singing this song in my mind! In addition to being an incredible dancer, he wasn’t a bad singer either.
- Bud's Bar Stool - Tuesday, May 16, 23 @ 4:08 pm:
=== That is nice work. You’ve cost the company $200 million so we are going to give you $7.7 million in benefits. ===
No, ComEd made $1.8 billion on the corrupt deal. So from the company’s perspective, nice work, indeed.
- Joe - Tuesday, May 16, 23 @ 10:50 pm:
Shareholders - sure, but where do all those profits and dividends come from?