Avista executives to receive $18 million payout on day of sale

avista

Thirteen of Avista’s top executives will receive a combined $18 million in immediate payouts if the Spokane-based utility is sold to Hydro One, of Toronto. 

The payouts are part of the “change of control” agreements the executives received when they were promoted to Avista’s top management. The agreements are legal contracts and are common at publicly traded companies. They are intended to keep the executives focused on running the business in the event of a sale or merger.

The $18 million represents the value of stock options previously awarded to the executives as part of their annual compensation. The options are awarded based on Avista’s performance, and they typically vest over a three-year period. But on the day the sale of Avista is final, executives would receive their outstanding stock awards in a lump-sum payment.

After the sale, Avista would be a subsidiary of Hydro One and would no longer have its own stock.

Avista chariman and CEO Scott Morris would be the largest recipient. His stock awards are valued at $5.85 million, according to documents filed with the U.S. Securities and Exchange Commission.

Both companies expect the sale to be completed by the end of the year, pending regulatory approval. (Spokesman-Review)

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