Another company that benefited from millions of dollars in stimulus money, as well as state aid, is laying off workers. According to CapCon, A123 Systems received a combined $390.1 million for it’s battery manufacturing operation, only to turn around and lay off 125 employees. What’s worse is that the company richly rewarded its top executives at the same time, even as the company was millions of dollars in the red. It looks like the bigwigs were the only people stimulated.
In the nine months since David Prystash was named Chief Financial Officer of A123 Systems — the battery manufacturer that received $390.1 million in federal and state subsidies — the company has laid off 125 employees and had a net loss of $172 million through the first three quarters of 2011.
A123 Systems also learned earlier this month that the company that was to be the main purchaser of its batteries — Fisker Automotive — had its federal funding cut off for missing milestones and had to lay off its own employees. A123 Systems had invested $23 million into Fisker.
Yet, this month A123’s Compensation Committee approved a $30,000 raise for Prystash just days after Fisker Automotive announced the U.S. Energy Department had cut off what was left of its $528.7 million loan it had previously received.
Prystash wasn’t the only executive to see a big raise this month. Robert Johnson, vice president of the energy solutions group, got a 20.7 percent pay increase going from $331,250 to $400,000, while Jason Forcier, vice president of the automotive solutions group, saw his pay increase from $331,250 to $350,000. Prystash’s raise was 8.5 percent, going from $350,000 to $380,000.
Read the whole thing, at the time A123 received money from the state of Michigan, then Governor Jennifer Granholm hailed it as a success story.
President Obama wants more of this cronyism.
Tags: A123, failure, green energy, stimulus
Also, you could have a small fortune now if you had invested a large fortune in First Solar Corp. last year, one the “best” solar co’s for $140.00 per share. Now you could get almost $35.00 per share. Great business! Far better than oil or gas. Right!
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Well, this is the 1% vs 99% thing again, if 99% of the population gave a damn, these clowns would not dare to do this kind of stuff.
OldDave
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