Oil-field services company Nabors Industries Ltd., which has
been criticized over its executive compensation, said it would
extend salary reductions for two top executives by another six
months, a cost-cutting move that reflects "current industry
conditions."
In December, the base salary of Chief Executive Anthony G.
Petrello was reduced by 10% for a six-month period through June 30.
The new six-month reduction lowers his annual rate to $1.575
million from $1.75 million. Chief Financial Officer William
Restrepo's base salary rate was reduced to $585,000 from
$650,000.
Nabors also said four board members tendered their resignations
after failure to receive a majority of shareholder votes, but
Nabors declined to accept the resignations after determining that
stepping down wasn't in the company's best interest. Nabors said
these board members played significant roles in a strategic review
process and were helpful in "significant enhancements" to corporate
governance.
Nabors said the proxy-advisory firms that often influence
shareholder votes sometimes make recommendations using "flawed or
inaccurate information."
The company won shareholder support in a "say-on-pay" vote after
an unusual string of four negative votes from 2011 through
2014.
Say-on-pay votes are required under the 2010 Dodd-Frank
financial legislation. The votes are nonbinding, but companies try
to avoid negative votes and many have overhauled pay packages
following failed votes.
Nabors, like others in its industry, has cut jobs amid a sharp
decline in oil prices. In April, the company said first-quarter
revenue declined but said cost-reduction efforts had helped
operating income.
Write to Josh Beckerman at josh.beckerman@wsj.com
Access Investor Kit for Nabors Industries Ltd.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=BMG6359F1032
Subscribe to WSJ: http://online.wsj.com?mod=djnwires