Mirant CEO to get $3.4 million under resignation agreement

December 31, 2004|By BLOOMBERG NEWS

ATLANTA - Mirant Corp., a U.S. power producer that is in bankruptcy, said yesterday that it will pay $3.4 million to chief executive Marce Fuller under an agreement for her to resign.

Fuller also will get an incentive award of $850,000, her target amount for 2004, Mirant said in a public filing yesterday. The U.S. Bankruptcy Court in Dallas has approved the agreement, the company said. Mirant began looking for a new chief executive early this year.

The agreement with Fuller comes as Mirant prepares a plan that would allow the company to emerge from bankruptcy. Mirant sought protection from creditors in July 2003 after wholesale power prices plummeted, and Fuller failed to persuade bondholders and banks to push back maturities on $4.9 billion in debt.

Under the separation agreement, Fuller waived rights to seek compensation under any change-of-control provisions, Mirant said.

Fuller headed the energy-trading business of Atlanta-based utility owner Southern Co. before Southern spun off Mirant in 2001. That same year, she ranked fifth on Fortune Magazine's list of the most powerful women in business.

Shares of Mirant were unchanged yesterday at 37 cents in over-the-counter trading. The stock traded as high as $47.20 in May 2001.

Mirant's shares plunged after Enron Corp.'s December 2001 bankruptcy triggered a collapse in the energy-trading industry.

Calls to Fuller and Chairman A. William Dahlberg were referred to Mirant spokesman Lloyd Avram. Fuller will remain chief executive until Mirant's board decides on a replacement, said Avram.

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