FuelCell Energy Inc. has installed a new chief executive, a few days after paying its dues with money taken from sales of stocks, as the almost-bankrupt company treads on to patch some holes.
The new CEO, Jason Few, will replace Chip Bottone and take up the reins of the Danbury, CT-headquartered firm starting August 26, a statement released by FuelCell, disclosed.
Few was a former executive at NRG Energy, that currently operates a consulting agency called BJF Partners. Since the resignation of Bottone in June, FuelCell's corporate adviser Jennifer Arasimowicz had been picked to serve as president in a temporary capacity.
"Few has developed strategic plans for growth," the company said of its new CEO, emphasizing his skills that resulted in "a billion-dollar turnaround," in his experience as a corporate leader.
As the new head of the company, Few will be paid $500,000 as a sign-up bonus. In addition, he will get $200,000 to cover the cost in his transition from Houston to Danbury; a salary of $475,000 yearly; and a bonus of at least 90 percent of his base pay, every year.
The hiring of Few comes at a time when FuelCell's stocks were dropping 97 percent in the last four quarters, making the company worth only $37 million. Founded in 1969, FuelCell was among the first to commercialize devices used in producing electrical power. But stiff competition in solar energy took a toll on the company, and it failed to hit its yearly target revenue since 1997.
Few believe that FuelCell has what it takes to go head to head with its rivals in the business. "The company is well-positioned to compete in the global clean energy market," as he vowed to lift FuelCell's profit goals, weeks after the board of directors raised the alarm on looming insolvency caused by falling sales.
The company's fuel-cell equipment is designed to generate electricity via a hydrogen process without toxic emissions. It works by converting a fuel's chemical energy and an oxidizing agent to form electricity through a pair of so-called 'redox reactions'.
FuelCell fell short in hitting its sales target during the first six months this year, shedding $19.8 million that left the company with less than $17 million in cash reserves.
Since its dismal second-half performance, FuelCell has sold a prototype fuel-cell system to ExxonMobil to the tune of $10 million, utilizing $6 million to settle off its recurring financial obligations with Hercules Capital. Prior to reaching maturity in the next few days, the company sold over 17 million shares at 35 cents/share, registering another $6.5 million and allotting a part of this amount for another Hercules due.
