TODAY'S PAPER
Good Evening
Good Evening
Long Island

PSEG-LI chairman of board made $2.82 million in 2019, according to SEC filing

David Daly previously served as president and CEO

David Daly previously served as president and CEO of the Long Island operation for PSEG. Credit: Barry Sloan

As Long Island lawmakers advance legislation that would require PSEG to reveal all executives' pay just as top LIPA officials do, there is one top official whose $2.82 million compensation in 2019 is already a matter of public record: PSEG Long Island chairman of the board David Daly.

Daly was PSEG Long Island's top operating official when the utility implemented a $30.6 million outage management system the company last week acknowledged experienced epic failure in the hours and days after Tropical Storm Isaias, which hit Aug. 4.

This month, Daly was said by a source to have been on Long Island working with top PSEG Long Island officials in the aftermath of Isaias, including on the cascading failures of the utility's telecom and computer systems, the selection and installation of which Daly oversaw.

A spokeswoman for PSEG didn't respond to a request for and interview with Daly or to comment Monday. 

Daly served as president and chief executive PSEG Long Island before taking on a larger role at the New Jersey-based parent company in 2017, but retains his position as chairman of the board. He was the executive on the ground when the company took over management of the electric grid from National Grid in 2014.

Isaias, which struck Long Island with wind gusts of up to 78 mph, left about 420,000 without power. It took more than a week before power was fully restored on the Island. PSEG president and chief operating officer Dan Eichhorn, who took over from Daly, said he expects the total number of outages to climb from that 420,000 figure. 

Eichhorn, at state legislative hearings last week, was pressed by Sen. Todd Kaminsky (D-Long Beach) to disclose PSEG Long Island compensation. Eichhorn declined, but Kaminsky asked if annual pay exceeded $750,000. Eichhorn said it did not, but when Kaminsky sought to clarify by asking if it exceeded $500,000, Eichhorn called the pay rates “personal and confidential,” and said he wasn’t comfortable discussing it.

Daly's 2019 compensation is listed in PSEG's annual filing with the Securities and Exchange Commission. He also serves as president and chief operating officer of PSEG Utilities and Clean Energy Ventures, overseeing operations that include PSEG Long Island and PSE&G, the New Jersey utility.

Kaminsky on Friday told Newsday he was introducing a bill that requires utilities and contractors working for utilities to disclose six years of executive compensation.

Asked if Gov. Andrew M. Cuomo would support increased disclosure by PSEG executives, his office on Monday said, “We will review any bill passed by both houses of the legislature and are committed to increased transparency and disclosure for utilities."

During rate hearings in 2015, attorneys for PSEG said the company would not disclose executive compensation for any of the 18 top executives who were running the Long Island utility because the LIPA management contract, overseen by Cuomo’s office, did not require it. A PSEG lawyer at the time said the contract “can’t be questioned.”

Daly’s pay, which was not revealed when he served as chief executive of PSEG Long Island, is disclosed now to stay in line with U.S. securities law.

PSEG gets more than $58 million a year from LIPA ratepayers to run the Long Island utility, plus $9.8 million in incentive pay for hitting certain performance targets. This year, PSEG agreed to waive the incentive pay and instead use it to reimburse customers who lost food and medicine due to the outage.

In 2015, Assemb. Fred Thiele (I-Sag Harbor) and Sen. Kenneth LaValle (R-Port Jefferson) introduced a bill that mandated PSEG disclose executive pay. It passed the legislature, but when it was signed by Cuomo that year, it required only that PSEG disclose the pay to the Department of Public Service, and that the figures are not publicly disclosed.

Even still, Eichhorn expressed disappointment in the bill at the time. “I think we’ve removed a lot of the politics from how the utility is run and really focused on it as a business,” he told Newsday at the time. “We want to make sure what we signed up for to run the utility stays that way … .”

The entire pay of LIPA officials is already publicly disclosed.

Just last month, LIPA announced it was hiring a new chief financial officer, Tamela R. Monroe, for a salary of $325,000. Monroe, who joined LIPA from the Colorado Springs Utility, makes more than LIPA chief Tom Falcone, who made $303,000 in 2019, and LIPA general counsel Anna Chacko, who made $284,160. Cuomo in 2019 made $198,765.

Monroe is the highest-paid LIPA official, but there was one who made more. In 2003, LIPA paid more than $528,000 to Anastasia Song, a consultant to LIPA who served as the authority’s top financial officer. Song had been a top aide to then Gov. George Pataki before joining LIPA.

Latest Long Island News