May 7, 2013
By Neal Tepel
WASHINGTON DC – The AFL-CIO and the Utility Workers Union of America are urging shareholders of FirstEnergy (FE) to vote "against" the company's advisory vote on compensation for its named executive officers — also known as the "Say-on-Pay" vote.
The AFL-CIO and the UWUA are encouraging shareholders to vote against FirstEnergy's Say-on-Pay resolution because CEO Anthony Alexander's total compensation went up 27 percent in 2012 to $23.3 million, despite the company's poor performance last year. The company's revenues, net income and earnings per share all fell in 2012.
Despite the company's poor performance, the Compensation Committee also voted to give Mr. Alexander a $9.3 million restricted stock retention package.
"In our view, FirstEnergy is a prime example of the problem of runaway executive pay at U.S. companies," stated Michael Langford, National President of the UWUA and a member of the AFL-CIO Executive Council. "Shareholders have an opportunity this year to send a strong message to directors that compensation practices for top executives at this company must be reformed."
