Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Cheniere Scraps Stock Awards Plan Following Lawsuit

July 1 (Bloomberg) -- Cheniere Energy Inc., whose chief executive officer was paid more than any other in the U.S. last year, has pulled plans to issue more stock awards to executives following a shareholder lawsuit, according to court documents.

Cheniere, which delayed its annual meeting by three months following the legal challenge, said in a court filing that it would cut proposals from a shareholder ballot to add 30 million shares to the pool of awards available for executive bonuses. The natural gas export company, which has never generated an annual profit, granted CEO Charif Souki 6.3 million stock units valued at $133 million in 2013 as part of a $142 million compensation package.

The 30 million shares that Cheniere had proposed adding to the pool are valued at more than $2.19 billion, according to yesterday’s closing price of $73.

Cheniere, based in Houston, is on track to be the first company to export natural gas produced from the U.S. shale boom. The company said this week it had signed two new contracts to export natural gas from a terminal planned for Corpus Christi, Texas.

An investor alleged in the lawsuit filed May 29 in Delaware that a February 2013 vote allocating 25 million shares into a bonus pool, including 6 million awarded to Souki last year, was miscounted.

The claim led the company to postpone its annual meeting, now set for Sept. 11, by three months, according to a June 2 filing. Souki stands to lose 89 percent of his 2013 compensation if the shareholder lawsuit succeeds.

The case is In re Cheniere Energy Inc. Stockholders Litigation, CA9710, Delaware Chancery Court (Wilmington).

To contact the reporter on this story: Zain Shauk in Houston at zshauk@bloomberg.net

To contact the editors responsible for this story: Tina Davis at tinadavis@bloomberg.net Jim Efstathiou Jr., Robin Saponar

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.