Oops, they did it again…
Star Gas (SGU), which doesn’t have a very good track record when it comes to doling out hefty payments to top executives, has managed to do it again. One would think — ok, at least hope — that a company whose stock chart looks like this would be a bit concerned about appearances. But that’s not exactly the case.
In this 10-K filed yesterday, Star Gas noted that CEO Joseph Cavanaugh received a $1.1 million bonus, which in footnote #9, the company said was a result of the December 2004 sale of the company’s propane segment, a unit that Cavanaugh had been CEO of before being tapped to be CEO of the whole company when Chairman and CEO Irik Sevin resigned last March. As I noted in the earlier post, Sevin resigned after an investor called him “one of the most dangerous and incompetent CEOs in America”, though he’ll continue to collect a paycheck in one form or another through the year 2023.
Indeed, given what’s happened to propane prices over the past year, it’s hard not to wonder whether Star’s investors would have been better off if they hadn’t of sold the propane unit. Then again, that would have made for a much colder Christmas for Cavanaugh.