FirstEnergy is seeking the return of $56 million in bonuses to fired CEO Chuck Jones in the aftermath of the corporation’s bribery scandal, according to the company’s July 26 filing with the U.S. Securities and Exchange Commission.
FirstEnergy fired Jones in October 2020 after the U.S. justice department charged former Ohio House Speaker Larry Householder (R) and four power-broker and lobbyist allies in 2019 with masterminding $60 million in bribes and illegal contributions from FirstEnergy.
The money was used to elect Householder as House speaker and to pass House Bill 6, which raised customers’ monthly electric bills, and to provide $150 million in annual subsidiaries to keep the financially struggling Davis-Besse and Perry nuclear reactors afloat in Ohio. The Ohio General Assembly later revoked House Bill 6.
The SEC filing said Jones violated FirstEnergy’s code of conduct and other policies, for which he received $56 million in long-term and short-term compensations from the corporation. In November, 2021, the compensation committee of FirstEnergy’s board of directors decided to recoup the $56 million from Jones.
“There can be no assurance that the efforts to seek recoupment from Mr. Jones will be successful and the approximately $56 million recoupment demand has not been recognized in FirstEnergy’s financial statements as of June 30, 2022,” the July filing said.
In 2021, FirstEnergy agreed to pay a $230 million fine for its role in the bribery scandal involving the two Ohio reactors and Householder, the now-ousted former Ohio House speaker. Half the fine went to the federal government and half went to the state. FirstEnergy has said all $230 million will come from cash that FirstEnergy had on hand.
No one at FirstEnergy has been criminally charged in this matter. Two of Householder’s allies have pleaded guilty to the federal charges. A third killed himself. Householder and one ally still await their trials.
