Why are HEI/HECO executives getting bonuses while families face disconnections?

While thousands of Hawai‘i residents struggle to keep the lights on, Hawaiian Electric Industries (HEI) is rewarding its top executives with multi-million dollar pay increases. In 2023 alone, over 6,400 households were disconnected from electricity—more than double the pre-pandemic rate. Many of these are working families, renters, and kūpuna in multi-family homes already spending over 15% of their income on electricity, compared to the state average of just 1.9%.

And yet—HEI executives are getting raises:

• HEI President/CEO saw his compensation jump to $6.5 million in 2024, up from $5.4 million.

• President/CEO of Hawaiian Electric Company took home $2.6 million, up from $2.1 million.

• CEO of American Savings Bank, earned $2.6 million, more than double the previous year.

Although the President/CEOs of HEI and Hawaiian Electric Company (HECO) have since waived their 2024 pay increases, we have to ask: Why was this even on the table? What message does it send to Hawai‘i families being disconnected from essential services? These executives are already making multi-million dollar salaries. HEI’s President and CEO’s total compensation last year — $6,536,011 — is 58 times more than the average total compensation of the median HEI employee, which was $112,593, the company reported to shareholders. To further add insult, Hawaiian Electric has been going to the legislature for financial support on things like the wildfire recovery fund and step-in agreements on contracts with developers.

The HEI Vice-President justifies these bonuses by saying the executives brought the company back from the brink of bankruptcy without raising rates. While avoiding a rate hike is commendable, the real question is: Why aren’t these funds being used to reinvest in the grid or support struggling families?

The financials of both HEI and HECO are notoriously confusing, but the core issue is simple. Instead of funneling millions to corporate bonuses, our utility and its parent company should prioritize stronger services like:

• Establish a bill relief fund for income-constrained households facing disconnection. Utility relief providers have shared how drastically underresourced they are. Kauaʻi Island Utility Cooperative has a bill relief fund, HECO can too. 

• No waitlist on programs protecting medically vulnerable from disconnection. 

• Further investments in grid maintenance, modernization, and clean, renewable energy sources.

Let’s be clear: This contradiction of maximizing profits and bonuses while Hawai‘i residents struggle to pay their bills is nothing new. The Sierra Club of Hawaiʻi has historically raised concerns regarding exorbitant HECO executive raises amidst hard times for its customers. We are stuck in a system that puts profits over people. Investor-owned utilities are designed to reward shareholders and executives—even when it comes at the expense of their most vulnerable customers.

What you can do: 

Join us in saying enough is enough. Let’s urge our state regulators: We need accountability, equity, and energy justice now. Submit Comments to the Hawaiʻi Public Utilities Commission (PUC) today, who have recently been examining energy justice and utility disconnections across the islands Written testimony can be submitted online here. Sample comments and instructions below.

1. Enter your information: name, address, and email address.  

2. Enter docket number: DOCKET NO. 2022-0250 

3. Enter subject line: HECO bonuses amidst utility disconnections 

4. Position: Comment 

5. Comments: Enter comments or attach your own file. Specific format instructions are on the form.

Sample Comments: 

Aloha Chair Asuncion, PUC Commissioners, and Staff,

My name is [Your Name], and I am a resident of [Your Island/Community]. I am deeply concerned about Hawaiian Electric Industries’ decision to reward executives with multi-million dollar compensation packages while thousands of local families are being disconnected from essential electricity services.

The PUC has been taking strides of needed leadership in addressing the growing issue of disconnections. It has been taking seriously how these shutoffs disproportionately harm extremely low-income families, renters, and residents in multi-family housing. Many are spending over 15% of their income on electricity, a staggering figure compared to the state average of 1.9%. Families are forced to choose between electricity and basic needs like rent, food, and healthcare.

Meanwhile, HEI executives received eye-popping pay raises as reported by Civil Beat. The HEI President and CEO earned $6.5 million, while HECO’s top executive got $2.6 million. Although these executives have since waived their increases, there were other lower executives that were given bonuses as well. The fact that these bonuses were even considered—amid a disconnection crisis and extremely high rates–is deeply troubling.

I urge the Commission to take the following actions:

• Mandate the creation of a bill relief fund for income-constrained households, similar to the Kauaʻi Island Utility Cooperative model. Current utility relief providers have shared how underresourced they are to meet demand.

• Ensure no waitlist on programs protecting the medically vulnerable from disconnections—electricity is not a luxury, it's a lifeline.

I believe that such an essential service as electricity should not be in the service of rewarding executives while its customers struggle. Please take a moment to consider these recommendations to hold our Investor Owned Utility and corporate leadership accountable; realigning utility priorities to meet the needs of Hawai‘i's people. Our energy system must be just, equitable, and rooted in care—not corporate profit.

Mahalo for your consideration.

[Your Name]

Mahalo nui for taking action today! Together, we can create an energy future rooted in equity and justice.