Pence To Tout Trump Tax Law At Plant That Used Windfalls To Benefit Its CEO
June 19, 2018
Today Mike Pence is visiting a Nucor Corp. steel plant in Auburn, New York. After getting a big earnings boost from the massive corporate tax cuts in the Trump tax law, Nucor gave a big raise to its CEO and said it plans on distributing their windfall to their wealthy shareholders, not workers.
After getting a massive windfall from the Trump tax law, Nucor Steel rewarded its top executives and shareholders.
Nucor Corp. CEO John Ferriola: “Excluding the net benefit of about $175 million we received from the recent tax, federal tax law legislation, Nucor’s 2017 earnings were more than [$1,100,000,000]. It’s important to note that that is more than double Nucor’s annual average earnings over the preceding 7 years.”
Nucor gave its CEO a raise of more than $1 million after the company got a big boost from the Trump tax law.
Charlotte Business Journal: “Nucor Corp. CEO John Ferriola scored almost $12.1 million in total compensation for 2017. That’s about 133 times more than the median salary of $90,635 for the company’s 25,000-plus employees. Ferriola’s pay reflects a strong year in 2017 at Nucor (NYSE: NUE) in which the Charlotte-based steel manufacturer earned net income of $1.32 billion, including a $175 million boost related to a cut in federal corporate taxes.”
Charlotte Business Journal: “How Nucor CEO's pay, up 14.2% in 2017, compares to a typical employee.”
Nucor’s top priorities in using its tax windfall are all aimed at rewarding their wealthy shareholders, not their workers.
Nucor Corp CFO Jim Frias: “Our primary objective is profitable growth that provides attractive returns on the capital our shareholders have invested in Nucor.
“Our second priority is to return cash to our shareholders, primarily with cash dividends consistent with our success in delivering long-term earnings growth. Our February 2018 quarterly dividend marked 45 consecutive years of increased regular or base dividends for our company.
“Our third priority is to opportunistically repurchase our stock when our cash position is strong and our shares are attractively priced.”
Despite what Pence may try to claim today, Nucor had already expanded its Auburn plant long before the Trump tax law passed – in August of 2017.
August 2017: “Nucor has made a multi-million-dollar investment to increase production and safety at its Cayuga County steel mill. Federal, state and local elected officials joined Nucor executives and employees at a ceremony Friday to celebrate the opening of a new $30 million rolling mill.”