In recent days, a few public companies in the Houston have announced salary reductions for senior executives as they battle with the economic downturn. The changes are temporary though most haven’t set a timetable for when they will be restored. A summary of the changes announced for the CEO and CFO officers is set out in the table below.
A shout-out to Cactus, an oilfield services company, who were the first to announce changes.
[UPDATE 4/3/2020 – Since publishing this article, other companies have implemented reductions including Stage Stores (25%), NCS Multistage (20%), Target Hospitality (20%), Flotek (10%) and Team (10%)].
A couple of other comments
Occidental : All Executives had their salaries capped at $250,000. Furthermore, it appears that Oxy cut the salaries of all US employees making over $76,000 by 30%. It appears those making less got cut by 20%. Legacy Anadarko employees appear to have only got cut 4.9% to avoid breaching contracts in last year’s disastrous merger. That’s really going to help mesh the company cultures!
Group 1 Automotive : 3,000 US employees are furloughed for a 30-day period, with an option for a second 30-day period. 2,800 UK employees are furloughed for an initial period of 21 days. That’s about 40% of their workforce.
Company Position Name Old salary $000 New salary $000 % reduction
Cactus CEO Scott Bender 300 150 50%
Cactus CFO Stephen Tadlock 335 268 20%
Group 1 Automotive CEO Earl Hesterberg 1,150 575 50%
Group 1 Automotive CFO John Rickel 630 504 20%
Luby's CFO Scott Gray 342 171 50%
Nabors Industries CEO Tony Petrello 1,750 1,400 20%
Nabors Industries CFO William Restrepo 650 520 20%
Occidental Petroleum CEO Vicki Hollub 1,250 250 80%
Occidental Petroleum CFO Cedric Burgher 725 250 66%
Superior Energy Services CEO David Dunlap 850 680 20%
Superior Energy Services CFO Westy Ballard 440 374 15%
US Physical Therapy CEO Chris Reading 800 480 40%
US Physical Therapy CFO Larry McAfee 510 332 35%