USX Deal Payouts Slammed

Determinedly beating the drum for steelworker votes and economic populism, two of the leading Senate opponents of the purchase of US Steel by a Japanese rival drew attention to the executive compensation of the Pittsburgh steelmaker.

Senators Sherrod Brown (D-Ohio) and Elizabeth Warren (D-Mass) sent a letter to US Steel CEO David Burritt outlining their concerns.

"U.S. Steel was not in distress when it first received an unsolicited bid, and it is not in distress today. But if a merger is desired, there is no need for you to sell the company to a foreign-owned entity, as U.S. Steel has also received an alternative offer from a domestic steelmaker."

According to the March 12 proxy asking investors to approve U.S. Steel’s current and former top executives would receive payments totaling over $156 million – not including $40.8 million in payments to non-employee board members.

The lawmakers asked USX leadership to provide extensive detail and documentation of their compensation as well as the follosing - 

" Earlier this month, for the first time publicly, you warned that the consequences of the U.S. Steel-Nippon deal falling through could result in the loss of jobs and business in Pittsburgh. 15

1.  What new business facts have emerged in the last few weeks that have contributed to this development?
2.  What benefit is derived from threatening to close U.S. Steel’s Pittsburgh headquarters?

"If you, in fact, shut existing unionized plants, will you commit to selling these closed union assets to companies willing to operate and maintain them and refuse to transfer the facilities to liquidators?"

The full letter is HERE.