PREPA CEO suddenly quits job! (buyers, bankrupt, salary)
U.S. TerritoriesPuerto Rico, Guam, U.S. Virgin Islands, etc.
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Five members of the Puerto Rico Electric Power Authority’s (Prepa) governing board, including newly chosen Chief Executive Officer Rafael DÃaz Granados, abruptly resigned Thursday, citing political forces that want to control the public utility....“The Governing Board of PREPA must temper the salary to what I am proposing or, alternatively, the members who are not willing to do so must resign their positions, so that these are assumed by people who work arduously on the search for a good executive director willing to work for a salary that fits the reality of PREPA,” the governor wrote.
Giving a $750,000/year contract on an island where most people make under $20,000/year is really bad optics.
Politicians don't want to control the power company, they want to win the next election. There was no way Rossello could let that salary stand.
This is exactly why it needs to be privatized. Two CEOs and the board have been turned over because of politics (aka optics) and political grandstanding. In the end the island has a lot more to lose than 400k if they make a bad choice. How can you run a power company like this? Answer is you cant. No win situation for rossello.
This is exactly why it needs to be privatized. Two CEOs and the board have been turned over because of politics (aka optics) and political grandstanding. In the end the island has a lot more to lose than 400k if they make a bad choice. How can you run a power company like this? Answer is you cant. No win situation for rossello.
I agree, PREPA needs to be privatized. I don't understand what they are waiting for, Rossello has even said that they have several potential buyers lined up.
Of course, then he'll be accused of "selling the country" by the chest thumpers
But on July 11, just four months into the job, Higgins resigned. Among the factors influencing his decision, he said, was that compensation details stipulated in his contract could not be met. A month earlier, Puerto Rico's justice secretary had said it would be illegal for a public employee like Higgins to receive bonuses on top of his $450,000 salary.
Even as Puerto Rico’s residents were bracing for painful austerity measures, the bankrupt commonwealth spent $245,000 on a bulletproof Chevrolet Suburban to shuttle around Governor Ricardo Rossello....Still, the episode stoked anger in Puerto Rico, where residents have suffered through a decade of recession and are bracing for measures that could include reduced sick and vacation days and even reductions in pensions. Recently, Rossello himself joined a chorus of critics over executive pay at the commonwealth’s power utility, a firestorm that a new appointment Wednesday afternoon was supposed to lay to rest.
Giving a $750,000/year contract on an island where most people make under $20,000/year is really bad optics.
But borrowing 72 billion and not being able to account for it is just fine.
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