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Azr431 OP t1_j33nqmn wrote

Reply to comment by SkiingAway in Nine largest American utilities by market cap made $14B in profit in 2022 by Azr431

It's obvious we won't see eye to eye on this, so I'll reframe a simple question for you.

Do you think it's ok for an electricity provider that's supplying a basic need to pay $644M of dividends to shareholders with our money for three quarters in 2022 and give their CEO a 28% raise in one year?

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SkiingAway t1_j33rkzp wrote

I think there's two questions:

  • Are for-profit utilities a good thing - Probably not, especially as many currently function. At minimum, they need tighter regulation or better market design/structure.

  • Are the things you're holding up as examples a significant part of the increase in your utility costs this year - Nope.

The latter is basically my objection to your framing.

> need to pay $644M of dividends to shareholders with our money for three quarters in 2022

Their dividend last year was $0.6025/share, this year it's $0.6325/share. I'll also note that dividend payments are a big part of the market appeal of a utility company - they're not and can't be high growth businesses. They're supposed to pay out a modest, steady profit to shareholders.

> give their CEO a 28% raise in one year?

It's not particularly clear to me that the CEO got a 28% raise. This indicates the previous guy made $19.8m in 2019. So has this guy received a 28% raise from last year or a 70% pay cut from the last guy?

Realistically, the answer is probably neither given how much of their pay is tied to stock grants/stock market performance, but it's why I find these kinds of metrics - especially on a year to year basis, dumb arguments.

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Azr431 OP t1_j33ug5z wrote

>Are the things you're holding up as examples a significant part of the increase in your utility costs this year - Nope.

I never claimed the reason for the huge price increases in 2022 was because of the large dividends, CEO pay increase, etc. You formed that narrative on your own.

>Are for-profit utilities a good thing - Probably not, especially as many currently function. At minimum, they need tighter regulation or better market design/structure.

I guess a capitalist and a socialist can agree on something!

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