Two Senate Democrats have sent a letter to US Steel President and CEO David Burritt, expressing concern over reports he may receive a hefty payout once the company is acquired by Japan’s Nippon Steel.
Elizabeth Warren from Massachusetts and Sherrod Brown from Ohio sent the letter dated October 2.
The letter says, “We are troubled by reports that you are in line to receive 72 million dollars in additional cash and benefits if the deal is completed.”
It says, “If these reports are accurate, they demonstrate a repulsive conflict of interest in which US Steel executives can enrich themselves at the expense of US Steel workers.”
The letter asks Burritt to offer an explanation on this and other issues by no later than October 16.
The senators also criticized Nippon Steel, saying its conduct has heightened the concerns of the United Steelworkers union that the Japanese firm “will not commit to support steelmaking in the United States over the long term.”
The United Steelworkers union staunchly opposes the takeover plan. The move by the Democratic senators is seen as an attempt to win the union’s support as the US presidential election approaches.
The two steelmakers agreed on the acquisition in December last year. The Committee on Foreign Investment in the US is studying the deal.
At one point, media reports said President Joe Biden was poised to block the takeover, based on the committee’s recommendations.
The committee is now expected to make its decision after the November presidential election, as Nippon Steel has resubmitted its takeover plan.