U.S. Steel Executives’ Real Motives

U.S. Steel’s CEO David Burritt has failed to deliver on his commitments to invest in the company and is now “blackmailing” Americans to enrich himself. Even his own shareholders voted against the $72M payout he stands to gain.

CORPORATE EXECUTIVES NEGOTIATE MILLIONS FOR THEMSELVES 

CORPORATE EXECUTIVES NEGOTIATE MILLIONS FOR THEMSELVES

U.S. Steel executives stand to see a huge windfall if they close the deal with Nippon. CEO David Burritt and his executive team could be paid $156 million, according to the company’s SEC filings.

In April, U.S. Steel’s shareholders objected to the massive payouts that Burritt and his executive team lined up for themselves. But U.S. Steel’s leaders have ignored the voices of their shareholders and continue to pursue their bonuses associated with the Nippon deal.

Burritt alone is set to receive a $72 million payout upon completion of the transaction. And don’t forget: Burritt already raked in $12.6 million by selling shares in U.S. Steel as the company was announcing the Nippon deal.

Along with Burritt, four members of his executive team are each set to secure payouts north of $15 million if the deal goes through.

BROKEN PROMISES AT U.S. STEEL

U.S. Steel has a long history of broken commitments to workers and their communities. 

U.S. Steel abandoned its commitment to invest $1.2 billion on two new facilities in the Mon Valley. And the company has been cutting good, union jobs, closing plants and idling operations so it can build out its non-union facility in Arkansas. This includes:

  • Closing three coke batteries at the company’s facility in Clairton, Pa.;

  • Indefinitely idling its blast furnace at its Granite City, Ill.; and.

  • Permanently shutting down its finishing mill in Pittsburg, Calif. 

Instead of investing in these operations, U.S. Steel purchased Big River Steel, a non-union company.

Since the U.S. Steel-Nippon deal was announced in December 2023, U.S. Steel has spent $120 million on “strategic alternatives review process costs” — money that could have otherwise been invested back into the plants to support steelworkers, their families and their communities.

U.S. STEEL’S BLACKMAILING CEO

As opposition to the Nippon deal has grown, Burritt and his executives have turned to threatening the union steelworkers that create the profits and the communities across the country that jobs at U.S. Steel support.

If the deal doesn't go through, Burritt threatened to double down on his strategy of union-busting and disinvestment, no matter what the cost to steelworkers and their families. The fact is the facilities are viable and sustainable. Indeed, Burritt and the U. S. Steel Board of Directors have long-promoted the facilities as “world class.” Nothing has changed.

At a time when the U.S. steel industry needs visionary, future-focused leadership, Burritt’s callous threats have earned him in the media the title of “Blackmailing CEO.”