By an OGJ Online Correspondent
CALGARY, Apr. 30 -- TransCanada PipeLines Ltd. stockholders received good news on profits at the company's annual meeting but grilled directors about large executive compensation programs in 2000.
Some shareholders complained senior executives received high bonuses while a dividend was cut and share values fell.
The company reported a $711 million (Can.) profit in 2000, compared to an $80 million loss in 1999. First quarter 2001 earnings were up 17% to $166 million from $142 million in the same period in 2000.
TCPL Chairman Dick Haskayne said large bonuses paid to some executives were justified on the basis of performance and successful completion in 2000 of a $3.5 billion asset sale, with an original target of $3 billion, and a near-doubling of TransCanada share values.
Retiring CEO Dick Baldwin received compensation of $3.29 million, including a bonus of $2.58 million. Harold Kvisle, who will replace Baldwin May 1 as president and CEO, received $1.38 million, including a bonus of $910,000. His compensation in 1999 was $344,632.
Haskayne said the bonuses were needed to ensure top management met goals for the asset sale and to keep them with the company until the sale was completed.
Baldwin said the executive compensation program is necessary to keep top people in a competitive industry.
TCPL reported first quarter natural gas deliveries in its Alberta pipeline system averaged 12 bcfd, compared to 13 bcfd in the same period in 2000. Mainline deliveries averaged 7.2 bcfd compared to 7.8 bcfd, and deliveries in the British Columbia system were unchanged at 1.2 bcfd.