Hawaiian Electric Industries Inc. said it has named Scott DeGhetto of investment banking firm Moelis & Company as chief financial officer of the company as part of a leadership shakeup.
DeGhetto, who most recently served as managing director of power, utilities and renewable energy at Moelis, will take over from Paul Ito, who will become as chief financial officer of Hawaiian Electric Industries’ utility, according to a statement. Ito is replacing the utility’s current chief financial officer, Tayne Sekimura, who will retire on Sept. 30 after 32 years of service.
The moves come as Hawaiian Electric is under scrutiny for the role its power lines may have potentially played in starting a Maui wildfire that razed the town of Lahaina and killed at least 97 people. The company’s share price has tumbled 65% since the blaze on Aug. 8, and it has been forced to suspend its dividend and draw down its credit lines. Potential liabilities could reach about $4.9 billion if the utility is deemed negligent, according to investment research firm Capstone LLC. That dwarfs the company’s current market value of about $1.4 billion.
DeGhetto has more than 30 years of experience advising companies in the power, utility and renewable energy sectors, the statement said. He has experience advising on a broad range of transactions including mergers and aquisitions, capital markets, restructuring and bankruptcy transactions, according to the Moelis website.
The county of Maui and victims families have filed lawsuits against the utility, alleging that its equipment is to blame for the deadliest wildfire in the US in more than a century. Hawaiian Electric has said that its power lines weren’t responsible for the wildfire and has blamed Maui County firefighters for their response to the blaze.
Ito will serve as chief financial officer and treasurer of the utility, called Hawaiian Electric Company Inc., until December 31, 2024, when he will return to his original role as CFO of Hawaiian Electric Industries, the company said. DeGhetto will remain at the parent company in an advisory role from Jan. 1, 2025, until April 1, 2025 to provide a transition around Ito’s return.