NYC Pension Funds Oppose Barry Smitherman Appointment To NRG Board
April 07,2017
The New York City Pension Funds are urging NRG Energy shareholders to reject the appointment of Barry Smitherman to NRG's board of directors, citing his stance on "climate change."
The City Pension Funds also alleged in a letter to shareholders that Elliott Management Corporation has, "a record of seeking board representation as a tactic to push for the break-up or sale of a company." Smitherman was named to the NRG Board under an agreement between Elliott and NRG
The City Pension Funds alleged in its letter:
"1. Elliott/Bluescape’s short-term orientation and commonly deployed strategy to seek further cost cuts and asset sales are on a collision course with NRG’s strategy to maximize long-term shareowner value, which appears to be on track and delivering strong results. Their directors have disproportionate representation on the BRC now considering the company’s future.
"2. The NRG board appointed the two directors representing short-term investors in a hasty and deeply flawed process that limited its time to conduct due diligence, deprived most NRG shareowners of meaningful input and exposed larger concerns with its board succession planning.
"3. Mr. Smitherman’s stated view that climate change is a 'hoax' disqualifies him to serve as a director of a company that, in its 2016 Form 10-K, cites climate change as a material risk and sets forth that its strategy to maximize long-term shareowner value is predicated on managing climate-related risks while concurrently seizing market opportunities created by climate change."
