Avista Corp. incentive pay sees big jump

COEUR d’ALENE — A good year for Avista Corp. in 2008 resulted in more incentive pay for its top executives.

The company filed its annual proxy statement with the U.S. Securities and Exchange Commission on Tuesday.

The total incentive pay in 2008 for five Avista executives was nearly $850,000, up dramatically from $135,000 in 2007.

The total compensation for Scott Morris, chairman of the board, president and CEO, was $2.2 million, almost double the $1.2 million he received in 2007. His base salary rose to $626,308, up from $452,461.

Jessie Wuerst, communications manager for the company, said Morris took on new titles last year as chairman of the board and CEO.

“With the promotions came a raise,” she said.

Morris’ stock awards totaled $620,897, up from $324,792 last year, while his incentive pay was $404,597, a jump from $43,196 in 2007 when “investor-focused targets” were not met.

The salary and compensation of other executives for 2008, when Avista had net income of $73.6 million, included:

n Malyn Malquist, executive vice president and former chief financial officer, received a base salary of $362,115, up from $350,000. The total comp package was $1 million, up from $799,360 last year.

n Marian Durkin senior vice president and general counsel and chief compliance officer, earned a base salary of $273,075, up from $264,992 in 2007. Total compensation was $719,542, up from 602,662.

n Karen Feltes, senior vice president, was paid $238,077, up from $213,192. Her total compensation was $694,036, up from $495,012.

n David Meyer, vice president and chief counsel for regulatory and governmental affairs, earned $240,000, with a total compensation of $519, 930, up from $502,874 in 2007.

While all four also received substantial increases in incentive pay in 2008 from the previous year, Wuerst said the long-term stock incentive awards are paid by shareholders, not Avista Utilities customers.

Wuerst said the salaries and compensation packages for Avista’s executives fall into the mid-range of similar companies. They are necessary to be competitive in the marketplace and keep the best employees, she said.

Avista is proposing net electric rate increase of 7.8 percent and a natural gas rate increase of 3 percent in Idaho, but Avista points out that the amount of compensation included in rates for all of Avista’s officers is about a half-cent of every dollar customers pay for energy.

Wuerst said there are several triggers regarding executive incentives.

 Avista serves 121,000 electric and more than 93,000 natural gas customers in Idaho.