Wednesday, March 24, 2004 | 11 a.m.
Southwest Gas Corp. of Las Vegas on Tuesday announced the retirement of Chief Executive Michael Maffie, effective in June.
Maffie, 55, joined the company in 1978 as treasurer. He became president and chief executive 10 years ago. In July 2003, Jeffrey Shaw was named president, becoming the apparent successor to Maffie.
In a statement released by the company, the Board of Directors indicated that it will appoint Shaw to the top post upon Maffie's departure. Maffie is expected to retain his seat on the board.
Shaw joined the company in 1988 as director of the internal audit division. Prior to being appointed president, he served as senior vice president for gas resources and pricing.
During his tenure as the company's top executive, Maffie saw Southwest Gas' customer base grow more than 50 percent. The company currently serves about 1.5 million customers in Nevada, Arizona and California.
"He built a strong organization at Southwest Gas and we thank him for all he has done for the company," Thomas Hartley, chairman of the company's Board of Directors, said in a statement.
The state's top utility regulator credited Maffie for staying focused on the company's core business of natural gas distribution during the chaotic Western energy crisis.
"When other energy companies were trying to branch out in all sorts of unrelated businesses, he stayed focused on providing reliable and efficient gas service," said Don Soderberg, chairman of the state Public Utilities Commission. "His company and his customers have benefitted greatly from his steady hand."
Not all investors have been happy with Maffie's cautious approach.
New York investor Mario Gabelli, through Gabelli Asset Management and other holdings, is one of the largest holders of Southwest Gas stock. After failing to have a hand-picked candidate elected to the board last year, he fired sharp criticism toward Maffie.
"Within the framework of the shareholders, Mike Maffie has dome some uninspired things there," he said. "We want another perspective on the board."
Gabelli has already indicated that he will nominate two more members to the board this year.
Maffie also was at the helm during a failed 1999 merger attempt with Oneok Inc. Southwest Gas shareholders accepted a bid from Oneok despite a higher bid made by Southern Union. The Oneok deal fell apart amid a flurry of lawsuits that took nearly three years to settle.
Southwest Gas officials said Maffie was traveling on Tuesday and unable to be reached for comment on the motivation behind his retirement or his future plans. Shaw said, however, that controversy played no part in the decision and there was no pressure from the company or its board for change.
"Mr. Maffie is leaving on his own terms and when he chooses to do so," he said.
Shaw, 44, also said there should be no change in the direction of the company under his leadership.
"With our growth continuing at record levels, we need to keep our eye on our core business," he said. "You won't see us varying from our core business much."
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