How "ethical" is a $10 million dollar bonus?

According to a Milwaukee Journal-Sentinel article from March 25, 2010, Wisconsin-based We Energies (We's parent company is Wisconsin Energy Corporation) - which services more than 1.1 million electric customers in Wisconsin and Michigan's Upper Peninsula and more than 1 million natural gas customers in Wisconsin through its utility subsidiaries - paid its CEO, Gale Klappa, a 23% salary increase in 2009 - a base salary of $1,129,008 (same as in 2008) and a bonus of $10,450,220.

A bonus of $10,450,220.

Good for Klappa. Now, in this day and age of over-inflated CEO salaries and bonuses (need I remind you about Bear Stearns, Fannie Mae and Freddie Mac, The Goldman Sachs Group, Inc., Morgan Stanley, American International Group, Inc., Citigroup Inc., General Motors Corporation, Bank of America, CIT Group), the general public isn't too happy when they hear "$10 million bonus". We Energies stated, however, that customers don't pay for bonuses, incentive pay or stock options...they only fund 76% of Klappa's base salary. So who pays for Klappa's bonus?

In 2009, We Energies reported a record profit of $382.4 million, up 6.5% from 2008. That's where the bonus came from, right? Nope. Don't get me wrong. I'm all for capitalism and people earning a buck, including Mr. Klappa. But how could We Energies have a record profit last year when it also reported their sales were down - due to the recession? And if We Energies' sales were down in 2009, why is Klappa getting a $10 million bonus? AND if Klappa got a $10 million dollar bonus and We Energies had a record profit last year, why did the state Public Service Commission approve a $48.1 million rate increase at the end of March 2010 that'll tack another 2 percent onto the 7 percent increase customers saw added to their bills in January 2010? I know...decreased sales.

Now considering everything I've just told you, how is it that Wisconsin Energy was named one of the world's most ethical companies for the third year in a row?

Does any of this sound ethical to you? Profits are up. Sales are down. CEO Klappa gets a $10 million bonus. We Energies' customers get two rate increases in two months and, on top of all that, there's a salary freeze for most of the 4,700 employees that work for We Energies?