Cheniere Energy seeking $1.9B increase in stock for executives

|About: Cheniere Energy, Inc (LNG)|By:, SA News Editor

Cheniere Energy (LNG +2.3%) is asking shareholders for permission to issue 30M shares to pay employees - including CEO Charif Souki, whose pay package last year totaled $142M - which is raising the ire of some institutional investors.

The stock would be valued at $1.9B based on yesterday's closing price, more than all the revenue LNG has generated since 2008; the new stock, plus 35M shares already reserved to pay executives since 2011, would be more than 25% of the company's public shares.

Advisory firm Glass Lewis says the proposed compensation plan could be excessive and dilute existing shareholders' stake by 12%; the company defends its plan as fair and necessary, noting that it has contracts to sell natural gas abroad that would bring in more than $2B/year for 20 years.