Front page of the The Wall Street Journal has a shocker of a story. There is no logical way to explain this story. None.
It should be noted that for the 99% this is not about jealousy. It is however about fairness at a time when schools are underfunded, health insurance is not attainable by all, and too many of our fellow citizens are facing another winter being homeless.
Then we read about this…..
In one of the largest executive paydays in recent years, Nabors Industries Ltd. is giving its chairman $100 million in cash in a severance-style deal, even though he isn’t leaving the company.
Eugene M. Isenberg, 81 years old, had been chairman and chief executive of
the oil-drilling company since 1987. Late Friday afternoon, Nabors said it was
promoting his longtime lieutenant, 57-year-old Anthony G. Petrello, to CEO, but
that Mr. Isenberg would keep his job as chairman.
The shift triggered a clause in Mr. Isenberg’s employment contract, entitling
him to a payment of $100 million “as a result of this change in responsibility,”
Nabors said in a regulatory filing.
The payment exceeds the Bermuda-registered company’s third-quarter net
income, which was $74.3 million on revenue of $1.66 billion.
By comparison, the highest-paid executive in the U.S. last year, according to
a Wall Street Journal survey published in May, was Viacom Inc. CEO Philippe P. Dauman, whose 2010 compensation was valued
at around $84.3 million. Of that, Mr. Dauman received $13.9 million in cash;
much of the rest came in one-time stock and option awards tied to a contract
A Nabors spokesman declined to comment beyond Friday’s filing.
A clause in Mr. Isenberg’s contract, which was scaled back in 2009 after
shareholders objected to an even-richer exit deal, called for the $100 million
payout in the event of his death or disability, or under various termination
scenarios, including “constructive termination without cause.” That is defined
as, among other things, his removal as either CEO or chairman.