Cheniere postpones annual meeting amid pushback on exec compensation

Cheniere Energy (LNG) says it is postponing its annual meeting from next week until Sept. 11, citing a lawsuit filed following the company's plans to ask shareholders for permission to issue another 30M shares (valued at ~$2B) for employee compensation over the next five years.

The plaintiff is an individual shareholder seeking class action status; he seeks to recover 25M shares of LNG stock which he says have been improperly awarded to employees and directors under an 2011 incentive plan even though the company did not count abstentions as “no” votes, in violation of Delaware law.

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Comments (11)
  • CRB
    , contributor
    Comments (2) | Send Message
    Did I read somewhere the CEO is the highest paid CEO in this country or did I dream it. I do not recall the amount this guy is paid per year but it is quite high. At what amount does a person become greedy? CRB.
    2 Jun 2014, 05:54 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (7341) | Send Message
    And this is outrageous since (LNG) is unprofitable. I am surprised (XOM)'s CEO doesn't make more. Seems like this CEO may drive (LNG) to the ground just like (JCP).
    2 Jun 2014, 09:05 PM Reply Like
  • Steve Lassere
    , contributor
    Comments (3) | Send Message
    Charif Souki CEO paid 142 million last year for running a company that goes deeper in debt every day. No more perks for employees until shareholders are paid dividends in the 5-15% range.
    2 Jun 2014, 11:56 PM Reply Like
  • ComputerBlue
    , contributor
    Comments (1408) | Send Message
    Youre correct. Pure greed.
    2 Jun 2014, 06:50 PM Reply Like
  • ippotr
    , contributor
    Comments (63) | Send Message
    well according to some its when u r union and ask for a ridiculous hourly rate of 25 dollars per hour,health benefits for your family and a pension of 3 thousand a month, but this CEO made 135million last year and NOW everyone wants to draw the line. ROFLMAO
    2 Jun 2014, 06:53 PM Reply Like
  • mapodga
    , contributor
    Comments (7704) | Send Message
    Don't criticize the financial wizard.
    He made real shareholder value from the company that is producing only costs and debts, till will be BUM and value gone... lOL
    2 Jun 2014, 07:53 PM Reply Like
  • TBoone
    , contributor
    Comments (35) | Send Message
    Sold all my shares today. Nice profit thank you.


    Remember Chesapeake Energy? and Aubrey McClennan the CEO? As the article points out the company has never made a profit and the CEO is just trying to grab everything he can get while he can still get it!


    Hope he meets the same fate as Aubrey who eventually got tossed out of the company on his ear.
    2 Jun 2014, 08:31 PM Reply Like
  • adspakhale
    , contributor
    Comments (2) | Send Message
    Dear Friends, dont you think LNG stock value is much much high...beyond the fundamental....Company project-LNG terminal have not yet completed and there is only debt and cost in the BS and PL statement....any bubble there?
    Why not prefer similar industry stock like DVN, CHK etc with current operating income...less risk
    What do you all think?
    2 Jun 2014, 09:16 PM Reply Like
  • mapodga
    , contributor
    Comments (7704) | Send Message
    I think it is big bubble. Ponzi pyramide.


    If would be today prices of US gas in 2018, and LNG manage to sold entire production it could make around 200mio yearly EBITDA. It is very expensive Equity - all together to be depreciated will be over 10bln, so it will be problem to even repay asset and will remain little for shareholders.


    Should care about bubble those that will have shares when imploded. They will lose at least 2/3
    3 Jun 2014, 01:43 AM Reply Like
  • ComputerBlue
    , contributor
    Comments (1408) | Send Message
    I'd say its an over-stretched equity but not a bubble. At least, not yet. Given Corpus Christi's recent developments, LNG will likely hit over $100 imo. I dont have a time frame for that prediction but until US gas reaches closer to 7-8 dollars, these projects look pretty good. They're just tolling facilities. The CEO appears to be milking this thing until LNG is acquired. However, the market has rewarded investors with fabulous returns in the short term.
    3 Jun 2014, 07:33 AM Reply Like
  • mapodga
    , contributor
    Comments (7704) | Send Message
    To computerblue:
    Till now return for investors was great. But you know, so was with every bubble.


    In economic term LNG export from US is competitive to Russian continental prices till you can brin the gas in terminal under 7$. Then you can bring Gas to pipeline to Europe for around 9.5$.


    At that level It will return money for invested money in assets but if you want profit the price of gas should be lower.


    This is simulation with current level of Russian prices. Biger danger come from Australia&papua&am... producers.


    They can produce at lower prices since their gas come at a price of 1-2$ per MMBTU, so they could win if will be there price fight.
    However I think that this LNG terminals won't go in vain because market around the world don't want to connect to only on supplier, however i believe the profit will be much lower as is expected.
    It is probablly so, that initial calculation of LNG was correct and this growth doesn't have real base.


    If we have marketcap 18bln and want to have E/P at least 14 there should 1,3 bln earning per year and asset will have depreciation at least 1bln per year.


    So you would need 2.5bln of EBITDA per year. Since oprational cost are at least 1.5bln and LNG will take only 60% of interests you would need 7bln $ yearly revenue of terminals.


    It was one calculation that said that is acceptable to have 2$ for LNG terminal per Mcf so to be economic you would need production (7bln/2) mcf of gas per year or with metric measures 3.5 x 28 bln m3 of gas 98 bln m3 or around 130 mio metric tons of LNG.


    If I undestend correctly in this 2 terminals should be produced around 20mio per year - so you woul need to build 6 times bigger investment with this money to get normal 7% dividend from terminal.


    LNG is on base of that already terrible expensive and will have P/E around over 100 when go to real life. At least with this market capitalization as is now.


    But you know, how thwy said. Every good hotel has to go in the begining twice in bankrupcy to become profitable :)
    3 Jun 2014, 12:26 PM Reply Like
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