Elimination of the Key Employee Incentive & Retention Plans need to be removed.
High ranking executives are running companies into the ground and coming out of chapter 11 courts with millions in the E&P industry.
https://documented.net/2020/04/ceos-of-bankrupt-oil-and-gas-corps-receive-millions-in-bonuses-and-other-compensation/
Take everything that's not part of the building. Heck, if you can remove copper wires and plumbing, grab it also.
CEOS OF BANKRUPT OIL AND GAS CORPS RECEIVE MILLIONS IN BONUSES AND OTHER COMPENSATION APRIL 29, 2020 Kelly Mitchell 'WSJ'
Documented analysis highlights how top executives are rewarded by bankruptcy courts and corporate boards, despite their companies’ poor performance.
OIL AND GAS BANKRUPTCY OVERVIEW
The fracking industry has long been mired in debt, but the oil price wars coupled with a glut in supply and reduced demand, as a result of the pandemic, has put the industry into a tailspin. Seven North American Exploration & Production (E&P) firms have declared bankruptcy in 2020 — the largest of which is Whiting Petroleum.
Additional bankruptcy filings are likely to be announced if companies are unable to meet upcoming debt maturities or management decides financial restructuring is the only path forward. Unfortunately, that may open new avenues for CEOs to enrich themselves at the expense of workers, creditors, and equity owners.
Documented reviewed the 10 largest (by total debt) E&P bankruptcies since 2015, as tracked by Haynes and Boone, LLP.* The findings below are pulled from 14-A proxy filings in the years during and after the bankruptcy filing and from the bankruptcy court docket itself.
SUMMARY FINDINGS
Through the Chapter 11 process, these CEOs took home a mix of retention bonuses and sizable equity ownership in the new company. Linn Energy CEO Mark Ellis topped the list, receiving a $6.9M cash incentive payment and $58M in equity compensation the year the company emerged from bankruptcy. For several CEOs, bankruptcy court-approved payments were significantly higher than any previous years’ compensation.
*Note: Whiting Petroleum is omitted because the filing is too recent to provide necessary data. It would otherwise be the second largest company on this list. We were not able to find detailed compensation figures for EnQuest executives.