John Rowe, Exelon’s chief executive said, Eliminating even a single job is painful, but we must reduce the size of our employee team in order to achieve the leaner and more efficient organizational structure required by today’s difficult economic and business circumstances.
Compensation program of the company will also be changed, including executive salary freezes, and decrease in annual and long-term incentive compensation.
The changes to the company’s compensation program and other cuts are taken into account of job reductions. The company’s projects a nearly 3.5% decrease in year-over-year operations and maintenance spending, from $4.5 billion in 2009 to $4.35 billion in 2010.
In relation with the elimination of the 500 positions, Exelon expects incurring a second quarter 2009 pre-tax charge of about $40 million. The final amount of charges will ultimately depend on the specific employees severed. This charge will be excluded from adjusted (non-GAAP) operating earnings.
