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.
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
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.