El Paso board fights off shareholder revolt
The management of embattled energy company El Paso defeated a shareholder-sponsored initiative on Tuesday that would have replaced its current board of directors.
Acting chief executive Ronald Kuehn claimed victory by a margin of about 5% after a vote at the company’s annual general meeting in Houston. The revolt, led by dissident shareholder Selim Zilkha, had aimed to tap into shareholders anger over a huge fall in the company’s stock price, burgeoning debt levels and poor credit ratings. El Paso’s stock price has fallen from highs of $74 in February 2001 to a low of $3.33 in February this year. El Paso shares closed at $9.04 Tuesday, up about 3% on the day.Although the official result will not be confirmed until all the proxy votes are counted over the coming weeks, Zilkha said after the vote that it appeared his side had “fallen a bit short”. Zilkha, who is the company’s largest individual shareholder with 1.5% of El Paso shares, added: “Whatever the final outcome, I hope that management and the incumbent board have heard loud and clear what the El Paso shareholders expect of them.”
Kuehn said El Paso plans to choose a permanent chief executive in the coming weeks.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Most read
- As FCMs dwindle, regulators fear systemic risk
- Top 10 operational risks for 2024
- Top 10 op risks: AI fears drive cyber risk to record high