CVR Energy sues Delek for documents to establish CEO pay (updated)

Delek Logistics Partners, LP

08/04/2021 23:54

(Adds detail from lawsuit)
    By Laura Sanicola
    April 8 (Reuters) - Billionaire Carl Icahn's refiner CVR
Energy  CVI.N , the largest shareholder in Delek US Holdings
 DK.N  which has been trying to choose three members of that
refiner's board, filed a lawsuit on Thursday seeking to inspect
books and records of Delek relating to its CEO compensation. (https://bit.ly/3e1Xp4T)
    The lawsuit wants information about total compensation of
Delek CEO Ezra Uzi Yemen, which CVR alleges was near $81 million
between 2013 and 2020. CVR says that total includes revenue not
disclosed in company proxy statements.
    Last month, Delek US Holdings rejected CVR's nominees to its
board, days after Icahn's company questioned the CEO
compensation and sent the initial demand letter.  urn:newsml:reuters.com:*:nL3N2L13MS
    CVR CEO David Lamp specifically questioned the 5% general
partnership interest Uzi Yemin held in Delek Logistics Partners
that was bought out in 2020 for $21.4 million by Delek U.S.
Holdings. 
    "The reasons why Yemin was granted that interest are
unclear, given the extraordinary existing compensation he was
already receiving for his service as Chairman of the Board,
President and Chief Executive Officer of both Delek and
Logistics," the lawsuit states. 
    CVR also claims that Delek twice rejected CVR's request for
the additional documents establishing Yemin's pay.
    "Yemin appears to be absolutely determined that additional
information about his compensation not become public and is
willing to freely spend Delek’s money on lawyers to prevent that
from happening," the lawsuit states.
    Delek did not respond to a request for comment.

 (Reporting by Arundhati Sarkar in Bengaluru; Editing by
Ramakrishnan M. and David Gregorio)
 ((Arundhati.Sarkar@thomsonreuters.com;
twitter.com/Arundhati_05; +1 646 223 8780 Ext: 2776;))