Here’s the kind of news that will make even your run-of-the-mill investment banker want to go down and Occupy Wall Street: Nabors Industries (NBR), the oil driller, is granting outgoing CEO Eugene Isenberg a $100 million payout after announcing they would be appointing Anthony Petrello as his successor as CEO. Isenberg, who has been chairman and CEO since 1987, will remain the company’s chairman.
The appointment of a new CEO triggered a $100 million cash payout, the Wall Street Journal reported, “as a result of this change in responsibility.” Isenberg’s contract guaranteed him the award in the event he was terminated for a variety of reasons, including “constructive termination without cause.”
If he had resigned or retired on his own, he wouldn’t have received the $100 million.
Here’s a question: if I’m chairman of a company and I could save that company $100 million by resigning instead of being terminated, should I resign or allow the company to pay the $100 million?
And if I later fire myself as chairman, can I get another $100 million? Just asking.
Nabors, which was also upgraded to Buy today by Dahlman Rose, was down 0.3% in afternoon trading.
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