Wednesday, September 5, 2007
Groups oppose TXU buyout, want CEO’s $270 million buyout windfall to go to low income families
TXU has rebuffed the demands of the special interest groups.
DALLAS According to this story in the Dallas Business Journal, it appears three special interest groups are opposing the TXU buyout unless lower-income Texas families stand to benefit.
The three groups -- ACORN, the SEED Coalition, and Public Citizen -- want the companies to extend a promised 18-month discount for low-income families to five years, give the $270 million "bonus" TXU CEO C. John Wilder would receive if the deal closes to low-income families and withdraw permit applications for eight coal-fired plants proposed for Texas.
TXU has responded to the demands by stating Wilder's $270 million is not a bonus, but rather the likely sale value for his approximately 4 million shares of stock, providing he cashes out at the agreed-to buyout price. TXU also claims that they already do more than most for low-income families, continuing to provide a ten percent reduction despite a lack of matching state funding.
Posted by Todd M.