Seeking Alpha

Cheniere defends shareholder vote approving CEO share award

  • Cheniere Energy (NYSEMKT:LNG) argues a stockholder vote approving a share grant to CEO Charif Souki was properly tabulated and isn’t subject to a legal challenge, the company’s lawyers said in a court filing in response to LNG stockholders who have sued that the balloting violated Delaware law governing the handling of abstentions.
  • The defense comes after LNG had said it would drop a bid to have investors approve the addition of 30M shares to its executive bonus pool; the move does not affect the $133M worth of shares granted to Souki last year as part of his $142M pay package.
  • Investors contend that if LNG had counted abstentions as no votes, as required by Delaware law, the 2013 addition to the bonus pool would not have received shareholder approval; LNG says it followed NYSE rules that disregard abstentions.
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Comments (11)
  • stagoilman
    , contributor
    Comments (7) | Send Message
     
    Seems like there might be a conflict...but corporate Executive GREED will probably win out.
    15 Jul 2014, 05:18 PM Reply Like
  • Elmers
    , contributor
    Comments (31) | Send Message
     
    This bonus is payment in stock for a job well done. Charif Souki made difficult decisions that are forward looking when others could only sit on their hands.
    15 Jul 2014, 05:34 PM Reply Like
  • Coolbluelake
    , contributor
    Comments (598) | Send Message
     
    I don't think any CEO should get $146 million bucks if his company has lost money eight straight years in a row. What cracks me up is how the regular Joe's out there that make the minimum wage getting beat up by everyone on CNBC when pay raises or raising the minimum wage comes up. But when it comes to giving some figurehead CEO twenty or thirty million in stock bonuses, it's "that's great, these people deserve every milliion"! Very few people are worth more than $1 million a year. I will not invest in Cheniere for that reason. If they pay this clown $150 million for losing money, how much will they pay him if they ever MAKE money.
    15 Jul 2014, 06:17 PM Reply Like
  • fernando mangino
    , contributor
    Comments (186) | Send Message
     
    This deal is just out of any credible proportion,the amount is a joke,no one ever got that amount in a loosing money company,I totally oppose this bonus.This person has all ready got from this project more than enough,lets wait and see if profits come along and then we will talk.If the Delaware law has been violated we should defend our investment,and cancel the deal
    15 Jul 2014, 08:50 PM Reply Like
  • Diggerdugit
    , contributor
    Comments (79) | Send Message
     
    All I can Add is---AMEN!!No one is worth that kind of money. at least not with my money. So as the SHARKS on CNBC would say "Im out"
    16 Jul 2014, 12:19 PM Reply Like
  • stagoilman
    , contributor
    Comments (7) | Send Message
     
    What it gets down to....is LNG required to follow Delaware laws or NYSE rules...or both? Seems to me that following NYSE rules does not exempt them from following Delaware laws unless it is specifically stated in the law. It seems to me also that laws would take precedent over rules.
    16 Jul 2014, 12:34 PM Reply Like
  • James R Crawford
    , contributor
    Comments (2) | Send Message
     
    Nuts !
    16 Jul 2014, 12:49 PM Reply Like
  • James R Crawford
    , contributor
    Comments (2) | Send Message
     
    What miracles has this CEO performed to deserve this kind of largesse? Every thinking person has become aware that CEO's are WAY overpaid by any measurement. GET REAL... come back down to earth and give up the notion that just because he has a title does not make him God.
    16 Jul 2014, 12:49 PM Reply Like
  • tealone
    , contributor
    Comments (303) | Send Message
     
    Legal or not, the shareholders seems to be sending a clear message.
    16 Jul 2014, 05:26 PM Reply Like
  • L. Guillermet
    , contributor
    Comment (1) | Send Message
     
    Every single CEO makes difficult decisions in a day to day basis, some of them even make their companies profitable. A payoff of such magnitude needs to be spelled out and explicity approved by shareholders and should be tied to profits and not only to being in the right place at the right time.
    16 Jul 2014, 08:22 PM Reply Like
  • hollowaya
    , contributor
    Comments (24) | Send Message
     
    CEO PAY # BOTTOM LINE EFFECTED. What a misguided corporate culture!
    Not only to include company image.
    27 Jul 2014, 11:23 PM Reply Like
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