Posted: 04/05/2025 03:29 am
Edison International (NYSE: EIX), one of the prominent players in the electric services industry, has recently found itself navigating turbulent times. With a notable drop in stock price and ongoing legal challenges, the company's compensation records provide an intriguing look into its executive strategy during this period.
Maria Rigatti, a key executive at Edison International, serving as the Executive Vice President and Chief Financial Officer (CFO), received a substantial total compensation package of $4,497,132 in 2024. This includes a base salary of $796,557 and significant stock and option awards amounting to $1,650,138 and $550,004 respectively. This highlights the company's approach to tying a substantial portion of executive compensation to stock performance, a strategy aimed at aligning executive incentives with shareholder interests. Other elements of her compensation include incentive plan payments of $742,900 and additional compensation of $20,700.1
Looking back, the compensation trends at Edison International underscore varying approaches to rewarding its executives. For instance, in 2023, Adam S. Umanoff, then Executive Vice President and General Counsel, received a total package valued at $3,062,528.2 This depicts a pattern where stock awards consistently play a pivotal role in the overall compensation structure. In previous years, a similar trend can be observed in the compensation of other executives, such as Caroline Choi in 2022 with a total compensation of $1,628,183,3 and Pedro J. Pizarro, the President and CEO, possessing one of the highest compensation packages at over $11 million in 2021.4
While executive remuneration at Edison International remains generous, the company faces significant legal challenges. Several law firms, including Rosen Law Firm and Bronstein, Gewirtz & Grossman, LLC, have spearheaded class-action lawsuits against the company over alleged securities fraud. These lawsuits, which encompass individuals and entities that acquired Edison securities from February 25, 2021, to February 6, 2025, claim violations of federal securities laws.5 The legal fallout comes at a time when the market value of Edison International has been under notable pressure, with the stock price plummeting approximately 6.2%, settling at $54.75 as of the last trade. This places further scrutiny on the effectiveness of tying executive rewards to stock performance amidst market volatility.6
Moving forward, as Edison International prepares for its earnings announcement expected on April 29, 2025, the implications of its compensation policies, alongside regulatory challenges, will undeniably shape its strategic direction in the forthcoming fiscal period.
:
1. "Maria Rigatti 2024 Compensation," SEC EDGAR, https://www.sec.gov/Archives/edgar/data/827052/000155837025003002/0001558370-25-003002-index.htm
2. "Adam S. Umanoff 2023 Compensation," SEC EDGAR, https://www.sec.gov/Archives/edgar/data/827052/000155837024003398/0001558370-24-003398-index.htm
3. "Caroline Choi 2022 Compensation," SEC EDGAR, https://www.sec.gov/Archives/edgar/data/827052/000155837023004096/0001558370-23-004096-index.htm
4. "Pedro J. Pizarro 2021 Compensation," SEC EDGAR, https://www.sec.gov/Archives/edgar/data/827052/000120677422000780/0001206774-22-000780-index.htm
5. "Legal Proceedings Against Edison International," Access Newswire, https://www.accessnewswire.com/newsroom/en/business-and-professional-services/eix-investor-alert-bronstein-gewirtz-and-grossman-llc-announces-t-989203
6. "Edison International Stock Overview," PRNewswire, https://www.prnewswire.com/news-releases/eix-investors-have-opportunity-to-lead-edison-international-securities-fraud-lawsuit-filed-by-the-rosen-law-firm-302421068.html
