CEO

How hard is it to be fired from the top reaches of corporate America? Consider the strange case of Mayo A. Shattuck III, chairman and chief executive of Baltimore-based Constellation Energy. Commodity bets with borrowed money and market turmoil nearly pushed Constellation into bankruptcy in September. The company's stock has fallen 75 percent since the beginning of 2008. Constellation shares have delivered about the same return as a broad basket of U.S. electricity and utility stocks since Shattuck took over in late 2001.

Congress must show resolve on war funds With U.S. military leaders warning that American casualties in Iraq will increase as the Bush administration continues its surge ("11 American troops, journalist die in Iraq," May 7), it is more important now than ever for our congressional representatives to remain steadfast in refusing to provide further unconditional funding for President Bush's war in Iraq ("Senators seeking Iraq compromise," May 11). For four years, Congress has given President Bush a free hand in pursuing a war that costs more lives and more millions of dollars every day, with no end in sight and little apparent progress.

Legg Mason Inc. plans to hire an executive search firm to help find a new CEO who would lead the Baltimore money manager once its revered founder Raymond A. "Chip" Mason retires, elevating the prospect that someone outside the company will be tapped. The company has been without a successor to Mason since James W. Hirschmann, who was offered the post, bowed out in April, saying he wanted to remain in California with his family as head of Western Asset Management, Legg Mason's largest subsidiary.

Acquisitions Phillips Edison & Co., a Baltimore-based owner and manager of community retail centers, bought the 79,187-square-foot Lassen Shopping Center in Susanville, Calif. Awards Mayo A. Shattuck III, chairman, president and chief executive of Constellation Energy Group, received the Loyola College Business Leader of the Year award at the Joseph A. Sellinger, S.J., School of Business and Management annual awards banquet. Network 2000, a statewide organization that promotes the advancement of women professionals and executives, presented Mercy Health Services/Mercy Medical Center with its Business 2000 Award for its dedication to the advancement of women in the workplace, and its commitment to a productive and diverse work environment.

Energy CEO's pay adds insult to injury It is no wonder the price of electricity has risen so much, given the $20.06 million paid to Constellation Energy Group CEO Mayo A. Shattuck III last year ("Top Dollar," July 8). I certainly hope that he donates a huge portion of that salary to charity. Better yet, he could reduce his salary and use the money to help lower the cost of electricity for the hard-working people of Maryland and the surrounding areas served by his company. Elaine Bernstein Columbia It doesn't take a genius to figure out that the total compensation last year for Constellation Energy Group CEO Mayo A. Shattuck III amounts to roughly $385,000 a week - at a time when utility rates are becoming virtually unaffordable for many people.

Former SafeNet Inc. executive Carole D. Argo pleaded guilty yesterday to a federal charge that she illegally manipulated the Belcamp-based company's stock option program to boost the value of awards and bonuses by millions of dollars for herself, former CEO Anthony A. Caputo and others. Argo, 46, entered a guilty plea to one count of securities fraud in a New York federal court yesterday. The charge carries a maximum penalty of 20 years in prison and a $5 million fine; she is scheduled for sentencing before U.S. District Judge Jed S. Rakoff on Jan. 21. Argo, of Baltimore, served as the Harford County encryption-technology company's chief financial officer until she resigned, along with Caputo, in October 2006.

A possible contender to be Baltimore's next schools chief has faced ethical questions during his tenure as the No. 2 school official in Philadelphia. Gregory Thornton was one of two top Philadelphia school officials who went on a trip to South Africa in the summer of 2004. The trip was partly paid for by an education software company, Plato Learning. Later that year, Thornton and the other administrator who went on the trip signed off on a no-bid, $926,000 contract for Plato, according to The Philadelphia Inquirer.

Conflict between generations is about as predictable as aging itself. In my family, my 88-year-old grandfather still disagrees with my aunt's enthusiasm for the Beatles, an argument that's brewed with the same intensity since the 1960s. The workplace is no exception to the friction. But today, as some industries face a drastic shortfall in qualified workers, the Old Guard is showing signs of being less resistant to the rising generation - at least to a point. Last month in New York, Ami Kaplan, the Northeast deputy managing partner for Deloitte & Touche USA LLP, made a presentation in which she shared some reactions of company executives to today's young hires.

ATLANTA -- Coca-Cola Co. said yesterday that Chairman and Chief Executive Officer Douglas Ivester will step down in April, after a 2 1/2-year tenure stained by slow sales worldwide, a contaminated-drinks scandal in Europe and a lagging stock price.Ivester, 52, will be succeeded by Douglas Daft, a 30-year company veteran. The 56-year-old Daft was named president and chief operating officer yesterday and will assume Ivester's posts.Ivester had been chairman and CEO since October 1997. He was hand-picked by mentor Roberto Goizueta, who in 16 years boosted Coca-Cola's market value 30-fold to more than $150 billion.

Percy Allen II, a New York City hospital executive, has assumed his duties as chief executive officer of Bon Secours Baltimore Health System.Allen, a fellow of the American College of Healthcare Executives, will be responsible for a system that includes a 208-bed acute-care hospital, four community primary care sites, five renal dialysis sites, two substance abuse treatment centers and a wellness and fitness center.The system also offers HIV/AIDS services, behavioral medicine, preventive health/education and community development programs.

CEO pay outrageous My compliments to you all, and in particular Jamie Smith Hopkins, for that great article on the outlandish compensation that is being paid out today ("Just rewards?" Aug. 9). It was a good followup to the piece by Hannah Cho on the Legg Mason situation. She suggested that the stockholders do not vote for directors who are on their compensation committee and award these big payouts. Many people don't realize that all large public companies have a powerful compensation committee whose members are also on the board of directors.

Chief executives of public companies have long had a ready answer when criticized about high pay: It's all about company performance. That argument has been put to the test by the toughest financial environment since the Great Depression. If performance is the standard, many of the Baltimore area's top-earning executives seem to be on shaky ground. To see how last year's financial crisis and worsening recession affected pay, The Baltimore Sun analyzed the 20 companies in the metro area that paid their CEOs at least $1 million.

Arundel tax auction nets $2.5 million 1 Anne Arundel County held its annual delinquent tax auction online for the first time this year, netting $2.5 million in revenue. The number of successful bidders increased from three last year to 32 during this month's auction, with the overall number of bidders up 55 percent. Ninety-eight percent of the approximately 1,400 properties with delinquent taxes and fees were sold. "The online tax sale process makes it easier for small investors in the community to participate, and at the same time brings needed revenue in this difficult budget climate," said County Executive John R. Leopold.

Everybody makes mistakes The Baltimore City School System has been fantastically served by Dr. Andres Alonso as the CEO. He has brought intelligence, professionalism and determination; things have noticeably improved. Did he make a mistake with Mr. Morris? It appears so. Let's give Dr. Alonso the freedom to make a misstep. We all do at one time or another. Katie Riback, Baltimore School board deserves blame, too While I don't disagree that Baltimore schools CEO Andres Alonso should have done "due diligence" before hiring a deputy, it seems clear to me that the principal blame still falls upon the board that was complicit in the Brian Morris fiasco.

Alfred E. Festa, president, chief executive officer and chairman of W.R. Grace & Co., will be staying on the job another four years under a new agreement reached with the Columbia-based company, according to a filing Friday with the Securities and Exchange Commission. Under the pact, Festa's initial base salary will be $936,000. His targeted annual performance bonus will be equal to his salary and his long-term incentive compensation is expected to be $3.2 million over the next three years.

With St. Joseph Medical Center under federal investigation, three top executives resigned Friday from the Towson hospital, including its longtime president and CEO, and its chief operating officer. The executives - CEO John K. Tolmie, COO Sly C. Moore, and Lucy Shamash, vice president of operations - have been on leave since February, when the hospital disclosed it was being investigated for its financial dealings with a physician group. At the time, the hospital said the executives were taking time off to avoid a conflict of interest amid the investigation.

The economic crisis is taking its toll on Maryland hospitals: A report released Thursday shows that 34 of the state's 58 hospitals lost a total of $466 million during the fourth quarter of 2008 and, officials said, the picture has continued to be grim in the first months of this year. The Maryland Hospital Association, which compiled the data, said hospital finances in the state have slid to "unprecedented low levels," far worse than hospitals nationwide. The fourth-quarter loss was 10 times that for the same period in 2007, the association said.

15 AIG workers agree to return bonuses NEW YORK : New York Attorney General Andrew Cuomo says 15 employees who received some of the largest bonuses from American International Group have agreed to return the money in full. The commitments amount to more than $30 million of the $165 million in bonuses awarded this month by the troubled insurer. Cuomo says he hopes that more AIG employees will return the bonuses. He says that he expects his office will be able to recoup about $80 million of the money the insurer paid out. Last week, Edward Liddy, AIG's chief executive officer, told Congress that some of the employees were going to give the money back.

In a week when the term "executive bonus" became a profanity, leadership at Constellation Energy did the right thing and reversed itself on millions of dollars in extra retention and performance pay for top executives that was part of the company's $4.5 billion sale of nuclear assets to EDF Group. This was never comparable to the scandalous behavior at taxpayer-subsidized American International Group, but the Constellation bonuses were unquestionably poorly timed. Lawmakers in Annapolis are on the verge of deciding whether to re-regulate the energy industry here, and many ratepayers are fuming over big winter utility bills.

How hard is it to be fired from the top reaches of corporate America? Consider the strange case of Mayo A. Shattuck III, chairman and chief executive of Baltimore-based Constellation Energy. Commodity bets with borrowed money and market turmoil nearly pushed Constellation into bankruptcy in September. The company's stock has fallen 75 percent since the beginning of 2008. Constellation shares have delivered about the same return as a broad basket of U.S. electricity and utility stocks since Shattuck took over in late 2001.