[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Sign-in]  [Mail]  [Setup]  [Help] 

Status: Not Logged In; Sign In

Roger Stone: AG Pam Bondi Must Answer For 14 Terabytes Claim Of Child Torture Videos!

'Hit Us, Please' - America's Left Issues A 'Broken Arrow' Signal To Europe

Cash Jordan Trump Deports ‘Thousands of Migrants’ to Africa… on Purpose

Gunman Ambushes Border Patrol Agents In Texas Amid Anti-ICE Rhetoric From Democrats

Texas Flood

Why America Built A Forest From Canada To Texas

Tucker Carlson Interviews President of Iran Mosoud Pezeshkian

PROOF Netanyahu Wants US To Fight His Wars

RAPID CRUSTAL MOVEMENT DETECTED- Are the Unusual Earthquakes TRIGGER for MORE (in Japan and Italy) ?

Google Bets Big On Nuclear Fusion

Iran sets a world record by deporting 300,000 illegal refugees in 14 days

Brazilian Women Soccer Players (in Bikinis) Incredible Skills

Watch: Mexico City Protest Against American Ex-Pat 'Invasion' Turns Viole

Kazakhstan Just BETRAYED Russia - Takes gunpowder out of Putin’s Hands

Why CNN & Fareed Zakaria are Wrong About Iran and Trump

Something Is Going Deeply WRONG In Russia

329 Rivers in China Exceed Flood Warnings, With 75,000 Dams in Critical Condition

Command Of Russian Army 'Undermined' After 16 Of Putin's Generals Killed At War, UK Says

Rickards: Superintelligence Will Never Arrive

Which Countries Invest In The US The Most?

The History of Barbecue

‘Pathetic’: Joe Biden tells another ‘tall tale’ during rare public appearance

Lawsuit Reveals CDC Has ZERO Evidence Proving Vaccines Don't Cause Autism

Trumps DOJ Reportedly Quietly Looking Into Criminal Charges Against Election Officials

Volcanic Risk and Phreatic (Groundwater) eruptions at Campi Flegrei in Italy

Russia Upgrades AGS-17 Automatic Grenade Launcher!

They told us the chickenpox vaccine was no big deal—just a routine jab to “protect” kids from a mild childhood illness

Pentagon creates new military border zone in Arizona

For over 200 years neurological damage from vaccines has been noted and documented

The killing of cardiologist in Gaza must be Indonesia's wake-up call


Science/Tech
See other Science/Tech Articles

Title: Subsidized Green Energy Company Struggles, Lays Off Workers — Rewards Top Executives
Source: michigancapitolconfidential.com
URL Source: http://www.michigancapitolconfidential.com/16500
Published: Feb 28, 2012
Author: Tom Gantert
Post Date: 2012-02-28 02:14:02 by farmfriend
Ping List: *Agriculture-Environment*     Subscribe to *Agriculture-Environment*
Keywords: None
Views: 219
Comments: 4

Subsidized Green Energy Company Struggles, Lays Off Workers — Rewards Top Executives

Analyst: 'It looks like they are trying to pad their top people’s wallets in case something really bad happens'

By Tom Gantert | Feb. 23, 2012

In the nine months since David Prystash was named Chief Financial Officer of A123 Systems — the battery manufacturer that received $390.1 million in federal and state subsidies — the company has laid off 125 employees and had a net loss of $172 million through the first three quarters of 2011.

A123 Systems also learned earlier this month that the company that was to be the main purchaser of its batteries — Fisker Automotive — had its federal funding cut off for missing milestones and had to lay off its own employees. A123 Systems had invested $23 million into Fisker.

Yet, this month A123’s Compensation Committee approved a $30,000 raise for Prystash just days after Fisker Automotive announced the U.S. Energy Department had cut off what was left of its $528.7 million loan it had previously received.

Prystash wasn’t the only executive to see a big raise this month. Robert Johnson, vice president of the energy solutions group, got a 20.7 percent pay increase going from $331,250 to $400,000, while Jason Forcier, vice president of the automotive solutions group, saw his pay increase from $331,250 to $350,000. Prystash’s raise was 8.5 percent, going from $350,000 to $380,000.

The raises were reported by the company in its filings with the U.S. Securities and Exchange Commission.

“It looks highly suspicious,” said Paul Chesser, associate fellow for the National Legal & Policy Center. “It looks like they are trying to pad their top people’s wallets in case something really bad happens.”

When A123 Systems announced it was opening its lithium-ion battery manufacturing plant in Livonia in September 2010, then Gov. Jennifer Granholm wrote about it on the Huffington Post calling it “a Recovery Act success story.”

But there have been troubles for A123 Systems in the 17 months since then despite a lot of state and federal aid to prop it up.

The state of Michigan gave it a $100 million MEGA tax credit that is contingent on the company creating 300 jobs by the end of 2016. A123 Systems also received another $41 million in tax breaks and subsidies from the state. The Department of Energy awarded A123 Systems a $249.1 million grant.

But the company has not been able to meet its own projections. For instance, on March 28, 2011 in an SEC filing, the company projected total revenue between $210 million to $225 million for 2011. Its latest report shows they had just $118 million of total revenue through the first three quarters of 2011 and reported a net loss of $172 million.

A123 Systems has handsomely rewarded its executives since 2010, according to SEC filings.

For example, A123 Systems CEO David Vieau made $375,000 in 2010 and saw that increase to $450,000 in 2011, a 20-percent increase.

A123 Systems Spokesman Dan Borgasano referred questions for comment to a Feb. 10 article in Crain’s Detroit Business where Forcier said A123 Systems has hired back more than 20 employees who were laid off and was looking to hire engineers.

On Feb. 6, Fisker Automotive had its federal loan blocked by the U.S. Energy Department because it hasn’t met milestones.

In 2010, A123 Systems entered an agreement to Fisker Automotive to provide lithium-ion batteries for Fisker’s Karma plug-in hybrid.

Fisker was to build at a former GM plant in Delaware, but that plant halted work at the plant and laid off 26 workers. Subscribe to *Agriculture-Environment*

Post Comment   Private Reply   Ignore Thread  


TopPage UpFull ThreadPage DownBottom/Latest

#1. To: farmfriend (#0)

Gee - a failing company rewarding top executives for failure. I am just soooooo surprised. /Total Disgust

Perseverent Gardener
"“Believe nothing merely because you have been told it. Do not believe what your teacher tells you merely out of respect for the teacher. But whatsoever, after due examination and analysis, you find to be kind, conducive to the good, the benefit, the welfare of all beings - that doctrine believe and cling to, and take it as your guide.” ~ Gautama Siddhartha — The Buddha

Original_Intent  posted on  2012-02-28   2:15:57 ET  Reply   Trace   Private Reply  


#2. To: Original_Intent (#1)

LOL you missed the green part.


changing the puppet does not change the play.

farmfriend  posted on  2012-02-28   2:17:06 ET  Reply   Trace   Private Reply  


#3. To: farmfriend (#2)

Oh, silly me. I should have known. Since it is green that justifies pouring millions of dollars down a rat hole. Of course, it all makes sense now.

Perseverent Gardener
"“Believe nothing merely because you have been told it. Do not believe what your teacher tells you merely out of respect for the teacher. But whatsoever, after due examination and analysis, you find to be kind, conducive to the good, the benefit, the welfare of all beings - that doctrine believe and cling to, and take it as your guide.” ~ Gautama Siddhartha — The Buddha

Original_Intent  posted on  2012-02-28   2:20:49 ET  (1 image) Reply   Trace   Private Reply  


#4. To: Original_Intent (#3)

LOL


changing the puppet does not change the play.

farmfriend  posted on  2012-02-28   2:36:22 ET  Reply   Trace   Private Reply  


TopPage UpFull ThreadPage DownBottom/Latest


[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Sign-in]  [Mail]  [Setup]  [Help]