CEO See-Ya!

Robert D. Fagan, CEO of TECO Energy.


The economy is picking up, but that doesn’t mean the era of the troubled CEO is at an end. With assistance from corporate governance specialists Glass, Lewis & Co. LLC, the See-Ya gang salutes Robert D. Fagan of TECO Energy, this month’s candidate for a going-away party.


TECO Energy

CEO: Robert D. Fagan
Tenure: 5 years

Total Shareholder Return*: -17.3%
Peer Index Return*: 4.0%
S&P 500 Index Return*: -10.7%
Total CEO Pay, 1998-2002: $8.1 million

Other Lowlights

It has been a rough few years for the utility industry, thanks to fallout from Enron’s collapse. It has been rougher still for Tampa, Florida- based TECO Energy, whose CEO, Robert D. Fagan, got caught up in Enron-style expansion. TECO invested in wholesale power plants that never saw expected demand. A February decision to transfer ownership to TECO’s lenders resulted in a $762 million charge. In April 2003, Fagan was forced to cut TECO’s dividend by nearly half. No wonder that in a Thomson/First Call survey of 16 analysts covering the company, 11 have a sell or strong sell rating. We think it’s time for Fagan to feel the same jolt as investors.

*Data from Glass, Lewis & Co. and FactSet Research Systems for five years ending February 3, 2004. For a fuller explanation of our methodology, go to