Who Plays a Role in Establishing Executive Compensation?
The Compensation Committee of the PG&E Corporation Board of Directors (Committee) oversees and establishes officer compensation policies for PG&E Corporation, which also covers Pacific Gas and Electric Company and each company’s subsidiaries. On an annual basis, the Committee has retained an independent consulting firm, Hewitt Associates, LLC (Hewitt), to assist in evaluating PG&E Corporation’s compensation policies, to provide guidance regarding industry compensation trends and practices, to give advice on competitive compensation levels at companies within a comparator group, and to recommend compensation alternatives that are consistent with PG&E Corporation’s compensation policies. During 2008, PG&E Corporation paid Hewitt approximately $225,000 for executive compensation services. Hewitt’s fees were presented to the Committee during the Committee’s annual review of the services provided by the independent compensation consultant. Hewitt also performed ongoing health and welfare co
