Wednesday, July 7, 1999 | 10:21 a.m.
That's in addition to a $3 million consulting contract and other compensation, according to a report to Southwest Gas stockholders.
The agreement is "within the norms for utility executives," said Roger Buehrer, a spokesman for Southwest Gas.
Maffie, a 20-year Southwest veteran, is the only senior executive planning to leave as a result of the merger. Oneok, of Tulsa, Okla., has picked Eugene Dubay to run what will be the company's Southwest Gas division.
Maffie also will be reimbursed for all job-seeking and moving expenses or, alternatively, can opt for $75,000.
He'll get office space and secretarial assistance for up to two years while he seeks a new job.
If the federal government determines his compensation is taxable as a "parachute payment," the company will provide Maffie with an additional payment to cover those taxes.
Maffie, 51, already held Southwest Gas stock options worth $1.8 million , according to a proxy statement. He's also is entitled to $642,000 in annual retirement pay.
Last year, Maffie's base salary rose 5 percent to $486,000, which is the midpoint for salaries of CEOs at comparable companies, according to the company.
The CEO also got a $234,000 bonus, an award of $351,000 worth of stock, and options on 25,000 shares last year.
Stockholders will be asked to approve the merger of the two gas utilities at an Aug. 10 meeting.
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