Tuesday, September 3, 2019

Houston, Texas-Based Natural Gas Distribution Company Cheniere Energy Inc's Top-Tier Executives Average Pay Raise Was a Completely Off-the-Charts 141.9% Per Year During the Past Ten Years (2009-2018)

The third Democratic 2020 Presidential candidate televised debate will be held in Houston, Texas on September 12, 2019.  Texas is also the home state of Julian Castro and Beto O'Rourke, who have both gained significant momentum in the past month.

The key issue to Texas citizens should be the huge and continuing Income Inequality Expansion which is at the core of many critical problems the US faces.

Thus I will be doing research and making posts on the average pay raise per year that the Top-Tier Executives of large Texas Companies were rewarded with in the past ten years.  I completed my study of large Texas Non-Oil &  Companies and now I have started studying large Texas Oil & Gas Companies. 

The 14th Texas Oil & Gas Company I am addressing here is Cheniere Energy Inc.

From annual compensation information contained in Company Proxy Statement filings with the US SEC, the chart at the bottom below shows Cheniere Energy Inc's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the past ten years.
  
Cheniere Energy Inc's Top-Tier Executives Average Pay Raise was a completely off-the-charts 141.9% per year for the past ten years, which is the very highest of the 14 large Texas Oil & Gas Companies I have addressed so far.
  1. Cheniere Energy Inc +141.9% per year for the past ten years
  2. Kinder Martin +115.8% per year for the past ten years
  3. Energy Transfer Companies +19.2% per year for the past ten years 
  4. Enterprise Products Partners +16.2% per year for the past ten years
  5. ConocoPhillips +14.8% per year for the past ten years
  6. Occidental Petroleum +14.3% per year for the past ten years
  7. The New Baker Hughes, a GE Company +12.2% per year for the past three years  
  8. Valero Energy Corp +10.1% per year for the past ten years
  9. The Old Baker Hughes Inc +9.9% per year for eight years excluding Golden Parachutes Pay
  10. Schlumberger Limited +9.6% per year for the past ten years
  11. Phillips 66 +5.4% per year for the past five years
  12. EOG Resources +5.1% per year for the past ten years
  13. Exxon Mobil +1.2% per year for the past ten years
  14. Anadarko Petroleum +1.1% per year for the past ten years
There have been many US Government laws enacted in the past two decades that have substantially increased income inequality expansion but the only highly effective US Government law enacted by either party in the past two decades that has substantially reduced income inequality expansion is Obamacare.

My objective is to get a better handle on just why the US and particularly here Texas has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term annual pay raise percentages for the executives of a Company vs the many non-executive employees of a Company, coupled with the stock price appreciation subsequent to the time the company executives were rewarded in their pay with stock equity compensation.
To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed, simple but effective Fair Pay Raise Income Inequality Narrowing Company tax incentives for rewarding non-executive employees with fair pay increases ..... the carrot ..... and Company tax disincentives for rewarding executive employees with clearly excessively high pay increases ..... the stick.  I am certain ..... it is simple math ..... that this tax proposal would be very effective in substantially reducing the huge income inequality expansion that has occurred for decades in annual percentage pay raises between company executives and the rest of the company employees. 

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages, including those retired.

Also, the US Government should require all US Corporate Boards to include at least one worker representative and to exclude any Company Executive.

Further, the US Government should ban Golden Parachutes.

FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Chenier Energy Inc 2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Fusco CEO     21,267     10,905  N/A   N/A     
Wortley CFO     10,065       3,277       3,277       2,764       2,764     14,203     14,203       1,516       1,516       8,368
Feygin Chief Commercial Officer       8,876       2,667       2,667       2,274       2,274     10,872  N/A   N/A     
Markowitz General Counsel       4,386       1,843
Shanda SVP Operations       5,378       2,004       2,004       2,111    
Gentle Former EVP  N/A   N/A      18,626       3,235       3,235     21,721
Rayford General Counsel     12,283       1,719       1,719     16,817
Teague EVP-Asset Group     14,593       1,919       1,919     16,867
Souki CEO  N/A   N/A        7,691   141,949
Thames Former CFO  N/A   N/A 
Abiteboul SVP International       2,075     14,365
 Totals      49,972     20,696       7,948       7,149       5,038     25,075     59,705       8,389     18,155   220,087
Annual % Change vs Prior Year 141.5% 11.2% -79.9% 611.7% -91.8%
5 Year Average Per Year % Change 118.5%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Chenier Energy Inc 2013 2012 2012 2011 2011 2010 2010 2009 2009 2008
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Wortley CFO       8,368       1,889    
Gentle Former EVP Marketing     21,721       8,838       8,838       2,199       2,199          847          847       1,881    
Souki CEO   141,949     57,518     57,518       6,254       6,254       2,651       2,651       7,305       7,305       3,964
Thames Former CFO     20,965       8,838       8,838       2,085       2,085          990          990       1,881       1,881       1,371
Abiteboul SVP International     14,365       7,399       7,399       1,717       1,717       1,121       1,121       2,023       2,023       1,231
Teague EVP Assets     16,867       7,095       7,095       1,457       1,457          797          797       1,881
Rayford General Counsel     16,817       7,095  N/A   N/A     
 Totals    241,052     98,672     89,688     13,712     13,712       6,406       6,406     14,971     11,209       6,566
Annual % Change vs Prior Year 144.3% 554.1% 114.0% -57.2% 70.7%
5 Year Average Per Year % Change 165.2%
10 Year Average Per Year % Change 141.9%





Posted by at