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Cheniere Energy seeking $1.9B increase in stock for executives

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.

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Comments (16)
  • kgerickson
    , contributor
    Comments (369) | Send Message
    Sounds reasonable to me.... can't even buy a basketball team.
    30 May 2014, 11:29 AM Reply Like
  • free choice
    , contributor
    Comments (2) | Send Message
    You've got to be kidding me, how much do they need.?
    30 May 2014, 11:33 AM Reply Like
  • Stan The Man
    , contributor
    Comments (160) | Send Message
    Seems like Souki has gotten enough for now...should give it a rest.
    30 May 2014, 11:35 AM Reply Like
  • osooro
    , contributor
    Comments (86) | Send Message
    As a share holder, I would need a lot more information before I would vote for it.
    30 May 2014, 11:39 AM Reply Like
  • CWAmember
    , contributor
    Comments (114) | Send Message
    Souki has done wonders for this company, all the while raiding the treasury shares. As I bought in at 15, I looked the other way. But, this simply is over the top. My 2K will say NO!
    30 May 2014, 12:41 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (3250) | Send Message
    its okay shares are up onthe news. LOL free bags for all to hold?
    30 May 2014, 12:42 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6052) | Send Message
    Hm, $1.9B more out of $14.5B market cap for employee salary. Does the CEO get a fair salary comparable to other CEOs in the industry? Or is (LNG)'s CEO like (JCP)'s CEO, who robbed the bank?
    30 May 2014, 01:06 PM Reply Like
  • Appel
    , contributor
    Comment (1) | Send Message
    I'm sorry, but I don't think ANY CEO is worth that kind of money, especially when you consider what the employees are paid annually. $142M would last me a lifetime. How much is enough?!!!
    30 May 2014, 01:14 PM Reply Like
  • red wine
    , contributor
    Comments (4) | Send Message
    So, essentially management proposes equity ownership of 25% with no risk to those granted stock under the compensation plan. How is that fair to shareholders, creditors, or any other interest that risks capital?
    30 May 2014, 01:14 PM Reply Like
  • tealone
    , contributor
    Comments (303) | Send Message
    Absolutely not, start looking for a new CEO and I bet his demand will go down significantly.
    30 May 2014, 02:31 PM Reply Like
  • ephud
    , contributor
    Comments (3397) | Send Message
    No way. If he can't make ends meet with $142M then too bad.
    30 May 2014, 02:36 PM Reply Like
  • BandS1941
    , contributor
    Comments (4) | Send Message
    Are the proposed increases tied to ongoing performance/future performance, are there any conditions under which these increases would be assigned?
    30 May 2014, 03:34 PM Reply Like
  • monpete
    , contributor
    Comment (1) | Send Message
    Greed beyond belief!
    30 May 2014, 05:16 PM Reply Like
  • Peyto
    , contributor
    Comment (1) | Send Message
    There is absolutely no way that this amount of greed can be justified. Are they not benefiting from the increase in value of their existing shares? Or is the program to dump the shares as soon as received.
    30 May 2014, 05:16 PM Reply Like
  • Ogreman51
    , contributor
    Comments (2) | Send Message
    Stunning. My stock was called on Friday, just 2 days after the latest contract announcement which drove the price up dramatically. I'm kind of glad that I'm out for the time being. With an announcement like this new stock offering, it seems there may be some volatility and downward pressure on the price. I'd like to stay long in LNG, but it would sure be a disappointment to buy back in at this current high. As to the GREEd, I aGREE it's GREEdy! Is Souki that good? Remember, too, the company is basing most of this on FUTURE income which hasn't been realized yet.
    1 Jun 2014, 09:20 AM Reply Like
  • WallStreetJourney
    , contributor
    Comments (128) | Send Message
    Talk about greed. (LNG) sounds like a ticking time bomb if these managers get what they want from shareholders. This company has proven nothing yet and if these people are willing to walk if they don't get what they want, buy them all a pair of new shoes to do so. I am sure there are plenty of companies out there who are willing to pay a CEO $142 million dollar plus a year to lose money.
    2 Jun 2014, 02:57 AM Reply Like
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