Mayor Street Defends Bonuses for PGW Execs

by KYW's Mike Dunn

Mayor Street is defending bonuses totaling $500,000 given to top PGW executives.

The bonuses to 55 top officials of the city-owned Philadelphia Gas Works were given out the past two years, but only this year did the utility publicly disclose the incentive plan. 

Consumer advocate Phillip Bertocci objects to the bonuses, given the dire financial straits of PGW:

”A company that is in such an extreme situation as PGW should not be providing executive compensation which includes bonuses.”

And Bertocci was not pleased to learn of it only now:

“These problems should be discussed in a public way, not through a bonus program that is undisclosed.”

Mayor Street, though, defends the plan.  He says PGW is much better run, and those managers deserve rewards:

“If they’re giving bonuses, you better believe they’re doing it in the interest of keeping good people.”

Mayor Street says PGW says the salaries of its officials are low compared to the private sector:

“It's low.  And we have a very difficult time recruiting.  And the board and the folks who are responsible over there know the kind of compensations that are necessary to keep good people.”

PGW is still saddled with debt and is considering requesting a hike in its base rate.