The article "Electric Utility Mergers: The Answer or the Question?" (by Robert J. Michaels) in the January 1, 1996, issue, along with current events involving my employer, a midwestern utility currently involved in a merger, initiated some questions and comments regarding top executives chairmen.
We expect continued mergers and acquisitions (M&A) in the continental United States until 50 or fewer utilities serve the nation. There will be a surplus of chairmen and top executives ("Execs"), based on the reduction in companies, and the stock of developing professionals that would have filled normal retirements absent the reduction. The cost of Execs should decline, at least until the oversupply is absorbed. Current mergers suggest the opposite is occurring.