Forbes Magazine reports on the compensation of the nation's top paid executives, including FPL CEO Lew Hay III. According to the magazine, his total annual compensation is $9.47 million. Over the past five years, he has earned $61.6 million. What recession, indeed. His compensation is roughly twice the median for similarly ranked utility companies.
Forbes reports that Hay owns $25 million in company stock (now called NextEra). From that perspective, recent sales of $9 million is noteworthy. It is nearly a third of his holdings. Why does a highly paid executive sell so much stock? Maybe he's burned through the $61 million he's earned, the past five years. Maybe Hay has a better place to invest it, like Lennar stock, or, maybe the $5 million of sales was after the disaster at Fukushima, in Japan; a full meltdown and much more serious than first reported.
FPL's debt to equity ratio is climbing; it is difficult to see how $25 billion in new nuclear reactors at Turkey Point would help the stock value. It wouldn't. The only way those nuclear reactors get built is if the US taxpayer backs the debt; shifting the costs off FPL's balance sheet. What are the chances that is going to happen?
5 comments:
Germany is dismantling it's nuclear program, I believe Sweden is too,
from what I read today in the Herald.
When is the US, under it's current administration, going to learn to 1) No more Nukes 2) Don't us taxpayer funds to subsidize Nukes!
No worries for FPL's balance sheet. They will simply go to the Legislature and get them to approve FPL adding a fee to the ratepayer bills to subsidize the construction costs (just like they did when they got the PSC to approve the ratepayers subsidizing all of the planning and design costs for the new reactors). It's in the bag.
I think I'm gonna buy some shares of FLP (NEE).
I figure as long as I'm getting screwed by them in one way, I should be able to try to profit off of it also.
I wouldn't be sure how to play the stock on this. A lot of insiders are selling. I guess a hedge would be good and they do pay a decent dividend. I'm going to look at the charts and maybe gone long on the stock and short sell the options.
Lennar stock – hummm! More like potential self-dealing with fellow Palm Beach Gardens pal, Kitson and Babcock Ranch.
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