PG&E Bankruptcy Update: Overhaul Of Board Of Directors Set In Motion

Following its Chapter 11 bankruptcy filing, PG&E (PCG) has announced that it is set to replace half of its 10-member board of directors. The changes will be made by May and are part of a “refreshment process,” according to the company.

PG&E said in an announcement that it expects no more than five of the current directors to go up for reelection at the 2019 Annual Meeting of Shareholders. A majority of the directors will be new independent individuals that are expected to be in place by the time of the meeting, the company said.

“We fully understand that PG&E must re-earn trust and credibility with its customers, regulators, the communities it serves and all of its stakeholders, and we are continuing to make changes that reinforce PG&E's commitment to safety and improvement,” the board said in a statement. “We recognize the importance of adding fresh perspectives to the Board to help address the serious challenges the business faces now and in the future.”

According to the PG&E board, it has already “identified strong candidates who would add fresh perspectives and augment the Board's expertise in safety, operations and other critical areas.”

The changes of the board come amidst PG&E’s liability for the Northern California wildfires. With $30 billion in liabilities assessed for the fires, PG&E saw these numbers drop by half when it was cleared of all liability in the Tubbs wildfire. A private electrical system caused the fire and not PG&E equipment as previously thought.

PG&E did not indicate which board members would be leaving nor which would go up for reelection. Roger Kimmel, a former PG&E board member, departed shortly after CEO Geisha Williams left the company and resigned from her board position, the San Francisco Chronicle reported.

PG&E filed for bankruptcy in January.

Shares of PG&E were up 1.72 percent as of 11:38 a.m. EST on Wednesday.