Trump appoints officials to oversee U.S. Steel under ‘golden share’ deal

President Donald Trump has appointed two Department of Commerce officials to oversee U.S. Steel under the golden share agreement reached with Japan’s Nippon, according to a letter posted Monday in the Federal Register.

Trump approved U.S. Steel’s controversial acquisition by Nippon in June after securing veto rights over key business decisions under a golden share arrangement. U.S. Steel stopped trading on the New York Stock Exchange that same month after the acquisition was completed.

Trump holds the veto powers covered by the golden share as U.S. president, but he can also designate someone else to wield those authorities as his representative if he wants. The president appointed William Kimmitt, Under Secretary of Commerce for International Trade, as his designee in a letter to U.S. Steel.

“I, President Donald J. Trump, hold the Class G Preferred Stock (Golden Share) in U.S. Steel, pursuant to the National Security Agreement (Agreement) between the United States Government, Nippon Steel Corporation, and U.S. Steel,” Trump said in a Nov. 20 letter to U.S. Steel executive Scot Duncan.

“The Golden Share provides the President with the ability to oversee U.S. Steel’s activities and to ensure the company continues operating its United States-based production facilities,” Trump said.

The golden share allows Trump or his designee to veto decisions that include changing U.S. Steel’s name, moving its headquarters from Pittsburgh, relocating the company outside the U.S., or closing production facilities.

Trump also appointed David Shapiro, a chief counsel at Commerce, as a director on U.S. Steel’s board representing the U.S. government, according to the letter.

The golden share goes to future U.S. presidents or their designee after Trump leaves office.