The proposed increase in Duke Energy's rates has a lot of people talking -- and some wondering what the salaries of Duke's top executives have to do with the utility's proposed rate increase.
They have plenty to do with it, according to Seth Powell, of the Greenville County Taxpayers Association, who has been speaking out against the proposed 16 percent hike.
"It seems inappropriate when you have people struggling to have the company award its CEO $9 million per year or give sweetheart deals to the CEO of Progress, $44 million. It kind of just kicks sand in the wound," Powell said.
Niesha Hallums, of Greenville, pays around $300 per month for electricity. When News 4 showed her a list of Duke Energy executive salaries, Hallums reacted strongly.
"It's unbelievable and sad," Hallums said. "They should be ashamed of themselves, actually."
Exactly how much do Duke Energy executives make?
According to the company's 2012 proxy statement, former CEO Jim Rogers received $8.7 million in total compensation, comprised of mostly stock awards. The second highest-paid executive, Chief Financial Officer Lynn Good, received $3.1 million in salary and stock awards. Two lower-level executives, Marc Manly and Dhiaa Jamil, received salaries and stock awards worth $3.1 million and $2.4 million, respectively.
Duke Energy spokesman Tom Williams told News 4 that while rate increases do help pay for executive salaries, only a small portion is used for that purpose.
"To the average customer, (the amount) is miniscule," Williams told News 4's Tim Waller. "And in South Carolina's case, we have cut the executive comp by half. That's what we do typically. That's not unusual."
Williams said Duke Energy pays neither the least nor the most in the industry. He said executive salaries, which are determined by a third party, are "intended to attract good candidates via a competitive process."
Charles Reback, a professor at the University of South Carolina Upstate's College of Business, said multimillion-dollar corporate salaries are not unusual.
"These CEOs are the equivalent of professional athletes. They're at the peak of their professions, and they probably are the best at what they do," Reback said.
There is also a downside to making this much money, according to Mike Miller, a certified financial planner. Miller said because Duke Energy executives receive most of their pay in stock awards that are performance-based, they're subject to the ups and downs of the market.
"It means the company has to perform before they get it," Miller said. "Just because (the proxy statement) says a half-million in stock options doesn't mean that's what they're going to get."
Duke Energy insists the vast majority of its requested rate increase is to cover costs related to modernizing its system to meet environmental standards and to maintain reliability. Williams said even with a portion of the increase going to fund executive salaries, Duke Energy's rates in South Carolina will remain far below the national average.
However, some Duke Energy customers are skeptical.
"If they paid somebody half as much, could they do just as good a job?" asked Bill Goodell, of Greenville.
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