- Brian Tierney presently works at asset administration agency Blackstone, certainly one of FirstEnergy’s largest shareholders.
- A federal jury discovered former Ohio Home Speaker Larry Householder and ex-Ohio Republican Celebration Chairman Matt Borges responsible of racketeering conspiracy March 9.
- In July 2021, FirstEnergy admitted it bribed Householder and high utility regulator Sam Randazzo and agreed to pay a $230 million wonderful.

FirstEnergy Corp. on Monday introduced a brand new president and CEO, simply over two weeks after two state officers had been discovered responsible within the largest public corruption case in state historical past, which concerned the electrical utility firm.
The corporate mentioned the board of administrators unanimously agreed to nominate Brian Tierney president and CEO efficient June 1, with Tierney anticipated to be appointed by the board after the Could 2023 annual assembly to function director.
Tierney succeeds interim President and CEO John Somerhalder II, who can be, and can stay, chair of FirstEnergy’s board.
Background on Larry Householder, First Power and Home Invoice 6
The general public corruption case concerned $61 million in bribe cash paid by FirstEnergy by way of darkish cash teams to assist former Ohio Home Speaker Larry Householder seize political energy and, in flip, cross and defend a $1.3 billion bailout regulation referred to as Home Invoice 6.
A federal jury discovered Householder and ex-Ohio Republican Celebration Chairman Matt Borges responsible of racketeering conspiracy on March 9. They resist 20 years in jail.
Borges lobbied for the Home Invoice 6 and labored to dam a referendum to place it on the poll in 2019. He paid a $15,000 bribe to get insider info on the referendum.
US District Courtroom Choose Timothy S. Black will sentence Householder and Borges within the coming months. Each males plan to enchantment. They weren’t taken into custody and remained out on bond.
In July 2021, FirstEnergy admitted it bribed Householder and high utility regulator Sam Randazzo and agreed to pay a $230 million wonderful. So far, neither Randazzo nor executives from FirstEnergy or FirstEnergy Options, now known as Power Harbor, have been charged with any crime.
Householder verdict:Ex-Ohio Home Speaker Larry Householder, former Ohio GOP chief Matt Borges discovered responsible
Who’s Brian Tierney?
Tierney, 55, is presently a senior managing director and world head of infrastructure operations and asset administration at asset administration agency Blackstone, the place he began working in 2021.
Blackstone grew to become certainly one of FirstEnergy’s largest shareholders in late 2021, when the funding agency acquired $1 billion value of the utility firm’s inventory. The deal additionally gave Blackstone a seat on the FirstEnergy board.
Tierney beforehand labored for 23 years at Ohio-based American Electrical Energy (AEP) Co., together with as government vice chairman of technique, chief monetary officer, government vice chairman of AEP Utilities East, and senior vice chairman of economic operations.
A former Peace Corps volunteer within the Philippines, Tierney earned his bachelor’s diploma in historical past from Boston School and an MBA from the College of Chicago with concentrations in finance and accounting.
“I’ve devoted my profession to the power business, and main FirstEnergy is a privilege that I’m humbled by and a duty that I take significantly,” Tierney mentioned in an announcement. “I imagine strongly within the steps of the corporate’s board and administration have taken to place the enterprise for long-term stability and success, and I look ahead to working with them to execute this technique and construct on FirstEnergy’s sturdy operational momentum. I respect the board’s confidence in me and can do every thing I can to serve our clients and communities, preserve our workers protected and transfer FirstEnergy into the longer term.”
Brian Tierney compensation package deal
In accordance with the corporate’s newest 8-Ok filed Monday, Tierney’s compensation package deal, by the board on March 22, consists of an annual base wage of $1.5 million, which might be reviewed yearly, and a hiring bonus equal to $1.5 million.
He is additionally anticipated to be eligible to take part within the firm’s government relocation program, government deferred compensation plan, 401(ok) plan, trip and paid day off program, and commonplace well being and welfare advantages.
As well as, his compensation package deal consists of the potential for thousands and thousands of {dollars} in money and inventory incentive awards primarily based on the corporate’s efficiency below his management.
The package deal consists of an annual short-term incentive award focusing on alternative equal to 150% of the bottom wage. The award for 2023 might be earned from 0% to 200% of the goal, relying on precise efficiency, however it will likely be prorated for precise service throughout 2023.
Beginning in 2024, there might be an annual long-term incentive award goal alternative equal to 683% of base wage (weighted one-third in cash-based performance-adjusted restricted inventory models and two-thirds in stock-based performance-adjusted restricted inventory models), with awards typically earned from 0% to 200% of the goal, relying on precise efficiency.
The package deal additionally consists of pro-rated awards of stock-based performance-adjusted restricted inventory models for the 2021-2023 and 2022-2024 efficiency durations (Tierney’s goal alternative, typically equal to $10,245,000, might be pro-rated for 9 out of 36 months for the 2021-2023 award and for 21 out of 36 months for the 2022-2024 award), with every award typically earned from 0% to 200% of the pro-rated goal, relying on precise efficiency and the particular phrases of the award ).
It additionally features a pro-rated award for the 2023-2025 efficiency interval (weighted one-third in cash-based performance-adjusted restricted inventory models and two-thirds in stock-based performance-adjusted restricted inventory models), with Tierney’s goal alternative of $10,245,000 pro-rated for 31 out of 36 months and the award typically earned from 0% to 200% of the pro-rated goal, relying on precise efficiency and the particular phrases of the award.
The package deal features a service-based restricted inventory award equal to $5 million that may vest in equal quantities over 4 years. Tierney might be topic to the corporate’s share possession pointers, below which his goal share possession after 5 years might be 700% of his annual base wage price.
John Somerhalder changed Steven Strah, who changed fired CEO Chuck Jones
Somerhalder was named interim CEO in September after the resignation of President and CEO Steven Strah. On the time, FirstEnergy mentioned the everlasting alternative can be employed from exterior the corporate.
“Brian Tierney is a confirmed chief with deep expertise within the power business, a singular mix of operational, monetary and strategic abilities, and a sterling file of driving progress and transformation inside our sector,” Somerhalder mentioned in an announcement. “During the last a number of years, we’ve taken decisive actions to reposition FirstEnergy for the longer term. The board’s search committee got down to establish a frontrunner who may proceed the essential work underway to drive the corporate ahead whereas bringing essential exterior experience and views. We couldn’t have chosen a greater suited candidate than Brian. We look ahead to working carefully with him to construct on FirstEnergy’s momentum and improve worth for our shareholders and different stakeholders.”
The corporate has been making main government management and board adjustments within the years-long aftermath of the $61 million Householder/Home Invoice 6 bribery scandal, by which the utility admitted to taking part in a serious position as a way to obtain taxpayer subsidies for 2 former FirstEnergy- owned nuclear vegetation.
Earlier CEO Chuck Jones was fired in October 2020, with Strah succeeding him as CEO, initially on an interim foundation.
“We thank John for his super management during the last six months,” lead impartial director Lisa Winston Hicks, talking for the FirstEnergy board, mentioned in an announcement. “He helped preserve the corporate on the right track and oversaw the continued execution of our technique to turn out to be a extra resilient and forward-looking firm. Below his management, FirstEnergy is on stronger footing and properly positioned to capitalize on the alternatives forward.”
USA TODAY Community Ohio Bureau reporters Jessie Balmert and Laura Bischoff contributed this text. Contact Beacon Journal reporter Emily Mills at [email protected] and on Twitter @EmilyMills818.