FirstEnergy names new CEO
Steven Strah was named CEO of FirstEnergy Corp. this week, effective immediately.
Strah had been serving as acting CEO since October 2020. Since May of last year, he has been president of the company, and that is a position he will continue to hold.
“Steve has consistently demonstrated the leadership skills, strategic acumen, and deep knowledge of our business needed to position FirstEnergy for long-term stability and success,” Donald Misheff, non-executive chairman, said. “Since his appointment as acting CEO, he has taken meaningful steps to put FirstEnergy on the right path forward, including ensuring a renewed emphasis on compliance and transparency throughout the company; laying out his strategy, including through FE Forward, to transform the company; and working to reduce regulatory uncertainty affecting the company’s Ohio utilities. The Board has full confidence in Steve and believes this is the right time for him to take the CEO role as we execute on the company’s strategic priorities for the benefit of all stakeholders and drive enhanced value for shareholders.”
Since Strah became president and acting CEO, the company has addressed urgent challenges and implemented key initiatives to enhance shareholder value and make FirstEnergy more resilient. Strah has spearheaded the company-wide FE Forward program designed to generate approximately $300 million in annualized capital expenditure efficiencies and about $250 million in working capital improvements by 2022.
“During my time leading the company as acting CEO, I have worked alongside the Board and the rest of the management team to address the challenges facing the company and ensure FirstEnergy stands on solid financial, operational, and regulatory footing,” Strah said. “Moving forward, we remain focused on driving strong performance, engaging constructively with regulators and our other stakeholders, and fostering a culture of uncompromising integrity and ethical behavior, starting from the top. I appreciate the Board’s confidence in me and in our management team as we continue to implement the company’s strategy and deliver the safe and reliable electric service FirstEnergy’s customers depend on every day.”
There will not be any involuntary employee reductions in connection to the FE Forward; rather, it will look to optimize processes and procedures through a range of opportunities.
“We are confident that these initiatives, which we have developed over the last several months, will strengthen our business and build on the substantial progress we have already made toward our objectives with FE Forward,” Strah said. “We are undertaking a transformation that is intended to enhance value for our shareholders and improve our credit profile while reinvesting in a truly modern and distinctive experience that improves customer service and satisfaction – all of which will put FirstEnergy on the right path forward.”
