A California law aimed to hold utilities accountable for wildfire liabilities by tying executive pay to safety records. Despite serious safety failures in 2023, including a significant increase in fires and injuries, Southern California Edison leadership still received notable cash bonuses. While the company's overall bonuses were reduced due to safety performance failures, four of the top five executives saw raises because of their success in other areas. Critics argue that this pay structure fails to align executive incentives with safety outcomes, highlighting a need for reform and accountability in utility leadership compensation.
Despite the increased safety issues, cash bonuses for four of the top five executives at Edison saw increases. Only the CEO had a reduced bonus due to safety failures.
Consumer advocates argue that these pay structures create a disconnect between executive incentives and the safety outcomes, indicating a need for reform.
According to compensation specialist Sergey Trakhtenberg, while cash bonuses were reduced due to safety failures, they still reflect strong performance in other areas.
The decline in Edison's safety record with a rise in executive compensation points to a troubling trend where safety isn't sufficiently tied to financial rewards.
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