SEC Investigates Nabor’s Executive Perks, Jets
Nabors Industries Ltd., the oil-drilling contractor said Wednesday that the Securities and Exchange Commission has opened an investigation into perks received by its executives such as personal flights on company jets.
A Nabors spokesman refused to comment on the investigation as did an SEC spokesman.
Nabors chairman is set to receive $100 million for relinquishing his chief-executive title. The use of Nabor’s jets for potentially personal travel by executives was also a focus of an article by the Wall Street Journal on June 17.
The Wall Street Journal reported that according to Federal Aviation Administration flight records, Nabor’s jets made frequent stops in Palm Beach, Fla., and Martha’s Vineyard, Mass., both being locations in which Nabor’s Chairman Eugene Isenberg has residences.
According to the Journal by the Federal Aviation Administration, the flights cost a total of about $704,000. Nabors did not provide a total dollar amount for the cost of aircraft perks for Mr. Isenberg in 2009 or 2010.
A company spokesman reportedly said that the company “complies with all IRS guidelines and SEC disclosure requirements with respect to the use of company aircraft by its executive officers.”
According to SEC rules adopted in 2006, companies are required to disclose the cost of executives’ personal use of corporate planes if the total amount exceeds either $25,000 or 10% of the cost of all perks.