AES Board Elects Paul Hanrahan as President and CEO, Dennis Bakke Named Emeritus CEO.Business Editors ARLINGTON, Va.--(BUSINESS WIRE)--June 18, 2002 New CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Commits to Increase Shareholder Value by Strengthening Balance Sheet, Cutting Costs, and Fixing Problems in South America The AES Corporation (NYSE NYSE See: New York Stock Exchange :AES) announced today that its Board of Directors has elected Paul T. Hanrahan as President and Chief Executive Officer, effective immediately. Mr. Hanrahan previously has been Executive Vice President and one of four Chief Operating Officers. The board elected Mr. Hanrahan after Dennis W. Bakke, who had been President and CEO since 1994, announced his intent to retire. Mr. Bakke has been given the title of Co-Founder and Emeritus CEO, and will remain on the Board. "The entire power sector has undergone a crisis of confidence, and investors are demanding change. Although AES has grown a great deal during my tenure, it became clear to me that this is a time for a new CEO," Mr. Bakke said. "Different times require different leaders." Roger W. Sant SANT South African Native Trust , chairman and co-founder of AES along with Mr. Bakke, said that the board selected Mr. Hanrahan as President and CEO "because of his demonstrated effectiveness as a problem-solver, his management experience around the globe, and his financial acumen." During Mr. Hanrahan's 15 years with AES, he has held senior executive positions in North America, Europe, Asia, and South America and has served as CEO or Chairman of three of AES' publicly traded subsidiaries. Mr. Hanrahan is a 1979 graduate of the United States Naval Academy United States Naval Academy, at Annapolis, Md.; for training young men and women to be officers of the U.S. navy or marine corps. George Bancroft, Secretary of the Navy, founded and opened (1845) it as the Naval School at Annapolis. , and served in the nuclear submarine service. He received an MBA MBA abbr. Master of Business Administration Noun 1. MBA - a master's degree in business Master in Business, Master in Business Administration degree from Harvard Graduate School of Business in 1986. Mr. Hanrahan also was elected to the AES Board of Directors. Mr. Sant said, "Dennis and I co-founded the Company in 1981 and he has been essential in leading AES to its position as a leading global power company. All of us at AES deeply appreciate the many contributions he has made to the Company and its people over the years." "AES has experienced the same problems as many others in the power sector, including reduced access to capital, weak electricity prices, and difficulties in emerging markets," said Mr. Hanrahan. "We do differ significantly from most companies in our industry because we are not engaged in energy trading as a business and we are not materially affected by the industry problems in California. However, we have significant issues that I must address immediately to maximize value for AES shareholders." "My immediate priorities include vigorous strengthening of the AES balance sheet, improving liquidity, reducing operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , and resolving our significant issues in South America in a way that is most beneficial for AES shareholders," Mr. Hanrahan said. "We will enjoy some growth in the next few years from delevering, cost cutting, and completion of projects currently in construction." Mr. Bakke co-founded AES in 1981. He served as Executive Vice President and Chief Operating Officer until 1990, when he became President. He was named CEO in 1994. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This news release may contain "forward-looking statements" regarding The AES Corporation's business. These statements are not historical facts, but statements that involve risks and uncertainties. Actual results could differ materially from those projected in these forward-looking statements. For a discussion of such risks and uncertainties, see "Risk Factors" in the Company's Annual Report or Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the most recently ended fiscal year. AES is a leading global power company comprised of contract generation, competitive supply, large utilities and growth distribution businesses. The company's generating assets include interests in 177 facilities totaling over 59 gigawatts of capacity, in 33 countries. AES's electricity distribution network sells over 108,000 gigawatt gig·a·watt n. Abbr. GW One billion (109) watts. hours per year to over 16 million end-use customers. For more general information visit our web site at www.aes.com or contact investor relations Investor relations The process by which the corporation communicates with its investors. at investing@aes.com. |
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