As a project development manager for Bonneville Pacific, Lubos Jarolimek devoted three years to a co-generation project in Yuma, Ariz.
The company sold the electric power plant for $4 million, or twice its $2 million investment in time and capital in the project, Jarolimek said. But he didn't receive a bonus for his work. When he left the troubled firm in October, he didn't receive a previously agreed-upon severance check of $2,000."The very people trying to create value for the company were not getting rich off of it," he said. "This has hurt Salt Lake City, which already has a reputation of the capital of swindle."
Jarolimek is one of several former Bonneville Pacific employees angered by the salaries and bonuses paid to company principals while the company headed toward bankruptcy and terminated some of its staff. Executive compensation has been detailed in a recently released bankruptcy examiner's report suggesting possible fraud and embezzlement by some company founders and a few top executives.
Shareholders big and small expressed frustration over recent revelations concerning the company's downfall.
A former Bonneville Pacific employee who received a court settlement over his termination two years ago doesn't blame employees for being bitter. "I think that the principals (of Bonneville Pacific) treated not only shareholders but employees unfairly in maneuvering to compensate themselves at the expense of the company," said David Hirschi, former secretary and general counsel.
"How can you not feel that way, especially when you were terminated and they didn't live up to their contract" to provide severance pay, former project developer Bob Keegan said.
Both Keegan and Jarolimek have filed claims in U.S. Bankruptcy Court to collect their severance pay.
Keegan said he was satisfied with his salary and proud of his work during four years at Bonneville. But the comparatively high compensation paid to company founders bothered employees. "It was a concern, and it created a morale problem," he said.
According to court records, founder and former chairman Raymond Hixon received a $103,584 salary in 1991 - a year after he stepped down as chairman and the same year Bonneville filed for bankruptcy.
Bonneville's largest single shareholder, Portland General, expressed its frustration by filing a lawsuit asking $228 million in damages - triple what it says it lost in buying Bonneville Pacific stock and lending the company money.
Most small shareholders are simply putting their sour investment in Bonneville Pacific in the loss column. But it will be hard to forget.
"I held a nominal amount of stock, but I am very stressed by it," said Brent Hoggan of Logan. "I resent very much this whole thing. The brokers painted a bright pictures of (Bonneville Pacific), and someone didn't do their homework."