$100 Million Payout for Nabors CEO
Nabors Industries Ltd. is paying its chairman $100 million in cash in a severance-style deal, even though he isn’t leaving the company. Eugene M. Isenberg, who is 81 years old, had been chairman and chief executive officer of the oil-drilling company since 1987.
Nabors Industries formerly known as Anglo Energy, Ltd., is an S&P 500 oil, natural gas and geothermal drilling contractor Company, whose headquarters is based in Bermuda and operates throughout the Americas, Middle East, the Far East and Africa.
The Wall Street Journal reported Monday that the Company said Friday that it was promoting 57-year-old Anthony G. Petrello, to CEO, but that Mr. Isenberg would keep his job as chairman.
A clause in Mr. Isenberg’s employment contract entitles him to a payment of $100 million “as a result of this change in responsibility,” Nabors said in a regulatory filing.
The payment however, exceeds the company’s third-quarter net income, which was $74.3 million on revenue of $1.66 billion.
According to a Wall Street Journal survey published in May, the highest-paid executive in the U.S. last year was Philippe P. Dauman, CEO of Viacom, whose 2010 compensation was valued at around $84.3 million.
According to the report, a Nabors spokesman declined to comment beyond Friday’s filing.
Isenberg, who has been one of the highest paid U.S. executives, would not have been entitled to the $100 million payout had he retired or resigned voluntarily.