Nstar's May racked up $12M in 2005
Boston Business Journal - Monday, April 3 2006

Nstar Chief Executive Thomas May received nearly $12 million in total compensation last year, including $5 million in restricted stock in lieu of an employment contract.

The Boston company distributes electricity to 1.4 million customers in Massachusetts, and last reported having 3,050 employees. Nstar had a $196 million profit in 2005 on $3.2 billion in sales.

The value of Nstar shares (NYSE: NST) rose 10 percent last year, and have been relatively flat since Dec. 31, closing Friday at $28.61.

May's 2005 pay included:

• $853,000 in salary, up 10 percent from 2004;
• $1.4 million in bonus money, down 8 percent;
• $7 million in restricted stock; and
• $2.5 million in stock options awarded in previous years that May exercised in 2005.

May, 58, was also granted new options to purchase 200,000 shares of stock in future years, more than one-third of all awarded by Nstar in 2005. NStar's senior-most five executives received 70 percent of all Nstar options last year.

A five-year employment agreement with May expired in August 2004. In lieu of a similar employment contract, NStar's board elected to award May a one-time deferred share award of $5 million, with all shares vesting in April, 2009.

Nstar General Counsel Douglas Horan and Chief Financial Officer James Judge each received $2.8 million in total compensation.

Nstar holds its annual meeting on May 4 in Boston. Three trustees stand for re-election: Thomas Dignan, of counsel at Ropes & Gray LLP; Matina Horner, a trustee of BlackRock Funds; and Gerald Wilson, a professor at the Massachusetts Institute of Technology.