Trustee Says CalPX Execs Were Overpaid

Executives of the now-defunct California Power Exchange have paid themselves far more than what the federal Bankruptcy Court has approved since March 2001, according to the U.S. Trustee’s office.

The U.S. Trustee joined energy companies this week in objecting to the compensation of executives at the state-chartered market, which ceased operations nearly two years ago.

The CalPX amended its insider compensation report in Bankruptcy Court on Sept. 25, several months after some CalPX creditors began investigating suspected excessive compensation.

CalPX Chief Executive George Sladoje made $1.87 million between April 2001 and August, according to the amended report, instead of the $365,000 a year that Chief Financial Officer Lynn Miller swore Sladoje would make in the original filing in March 2001.

Sladoje, in turn, swore that Miller would be paid $215,000 a year. She received almost $650,000 between April 2001 and August 2002.

“Compensation was paid in violation of court order and court approval of the debtor’s bonus program was obtained without full disclosure of material facts,” U.S. Trustee Maureen A. Tighe said Monday in a filing in Bankruptcy Court in Los Angeles.

Sladoje, Miller and their attorney did not respond to telephone calls seeking comment Tuesday.

CalPX staff attorney Susan Rossi also has not responded to questions on the matter.

The outgoing CalPX board of governors dismissed Sladoje on Nov. 25, saying his services no longer were needed.

Miller remains in her post, and the board raised her annual salary to $325,000 from $215,000, although it discontinued generous retirement payments of which creditors had complained.