The CEO of Brookfield Renewable Partners LP, Sachin Shah, received a 21% pay increase in 2017 after the company participated in several acquisitions and raised more than $400 million to help repay debts.
Shah's total compensation of $4.7 million included a base salary of $462,660, a cash bonus of $231,330 and escrowed shares valued at nearly $3.8 million. While his base salary was unchanged from the prior year, it was Shah's first cash bonus in three years, and the value of the restricted stock he received was 28% higher than what he got in 2016, according to a May 18 executive compensation report the company filed in accordance with Canadian securities laws.
In 2017 Brookfield Renewable Partners acquired stakes in TerraForm Power Inc., TerraForm Global Inc. and First Hydro Co., and raised $422 million through a public offering. Brookfield Renewable Partners said it delivered total shareholder returns of approximately 25% in 2017 and grew its funds from operations by 31% on a per-unit basis.
Shah, whose total compensation rose by 34% in 2016, is also the CEO of Brookfield Renewable Partners' service provider, BRP Energy Group. He is paid by Brookfield Asset Management Inc. Brookfield Renewable Partners said escrowed shares typically vest 20% each year, beginning one year after they are awarded, and generally must be held for five years.
Shah told investors May 3 that a combination of the tax overhaul U.S. lawmakers passed in 2017 and the prospect of rising interest rates is creating deal-making opportunities for Brookfield Renewable Partners. The company enjoys the backing of a well-funded sponsor in Brookfield Asset Management, which had $6.04 billion in cash and equivalents at the end of March.
"We don't by design just target large transactions, we look at everything," Shah said on Brookfield Renewable Partners' first-quarter earnings conference call. "So ... we've seen opportunities to pick off little assets here and there, and if we can do that and we can do that for the right values, well that's a great way to put capital to work."
Brookfield Renewable Partners operates a 16,000-MW portfolio of wind, solar, hydroelectric power and energy storage projects in North America, South America, Europe and Asia. The company's shares are down 10% since the start of the year.