Cheniere defends shareholder vote approving CEO share award

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

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.