Tag Archives: CFO

Houston companies reduce salaries for senior executives

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.

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.

SEC filing – Group 1 Automotive

https://www.thelayoff.com/occidental-petroleum

 

CompanyPositionNameOld salary $000New salary $000% reduction
CactusCEOScott Bender30015050%
CactusCFOStephen Tadlock33526820%
Group 1 AutomotiveCEOEarl Hesterberg1,15057550%
Group 1 AutomotiveCFOJohn Rickel63050420%
Luby'sCFOScott Gray34217150%
Nabors IndustriesCEOTony Petrello1,7501,40020%
Nabors IndustriesCFOWilliam Restrepo65052020%
Occidental PetroleumCEOVicki Hollub1,25025080%
Occidental PetroleumCFOCedric Burgher72525066%
Superior Energy ServicesCEODavid Dunlap85068020%
Superior Energy ServicesCFOWesty Ballard44037415%
US Physical TherapyCEOChris Reading80048040%
US Physical TherapyCFOLarry McAfee51033235%

Drilling Contractor CFO leaves after 3 months

Stephen Butz has resigned as CFO of Noble Corp, a drilling contractor, 3 months after joining the company. He is replaced by Richard Barker.

The company is an offshore drilling contractor. It has its registered head office in London but its operational head office is in Sugar Land.

According to the press release, Mr Butz resigned following the ‘recently announced Chief Executive Officer transition plan’.



In that plan, announced last month,  current CEO and Chairman, Julie Robertson became Executive Chairman (salary $500,000). Robert Eifler was promoted from Senior VP, Commercial to CEO (new salary $675,000). Ms Robertson also received a lump sum payment of $3.75 million, which will be clawed back if she resigns prior to October 31, 2021.

When Mr Butz joined the company in December 2019, he received a sign-on bonus of $1.1 million. If Mr Butz resigns without ‘Good Reason’ prior to December 2020, he is to repay the bonus in full. I presume that is the case here, but I can’t definitely state that as his signed employment contract has not been filed by the company. [UPDATE : The company has now the 8-K. Mr Butz gets to keep $450,000 of the $1.1 million].

In December, the company had a share price of around $1, giving it a market capitalization of $233 million and debt of $4 billion. Current share price is 29 cents (market cap $71 million).

Mr Barker joins from Moelis & Company, an investment bank. He joined that company in August 2019 having previously been at JP Morgan, Tudor Pickering Holt and Goldman Sachs. [UPDATE He will receive a base salary of $475,000. He will also receive cash retention/bonuses of $725,000 on December 31, 2020 and $575,000 on December 31, 2021].

https://www.prnewswire.com/news-releases/noble-corporation-plc-announces-departure-of-chief-financial-officer-and-names-replacement-301024738.html

Struggling LNG company appoints new CFO

Tellurian has appointed Kian Granmayeh as its new CFO. He replaces Antoine Lafargue, who will join the marketing group as the Senior VP of LNG Marketing. Mr Lafargue has been CFO of Tellurian or its predecessor company since June 2015.



Mr Granmayeh began at Tellurian as a consultant to the CFO in January 2019 and was appointed as Director of Special Projects in July 2019 and Director of Investor Relations as month later. Prior to joining Tellurian, he worked at Apache.

Mr Granmayeh will receive a base salary of $380,000.

It’s been a rough few weeks for the company, which is based in downtown Houston. In late February it announced that its anticipated completion of a partnership deal with India’s Petronet was delayed by two months. That deal is tied to the proposed Driftwood LNG project in Louisiana. As a result, its share price dropped by 10% on the day the delay was announced.

The share price dropped triggered the family trust of co-founder Charif Souki being forced to sell 18 million shares to satisfy loan requirements by a lender. Some 25 million shares had been pledged as collateral to secure a loan for certain real estate investments.

The shares, which had been trading around $7 in mid-February, are now trading at around a dollar.

SEC filing – Tellurian CFO

 

CFO of Houston-area bank dies unexpectedly

Jeff Powell, the CFO of Spirit of Texas Bancshares, has died unexpectedly. He was 62 years old.

Mr Powell had been the CFO since July 2017 and helped guide the company through its Initial Public Offering in May 2018. The company has its head office in Conroe, TX. It operates 23 full-service branches in the Houston, Dallas/Fort Worth and College Station metropolitan areas and has a market capitalization of $414 million.

Allison Johnson, currently the Chief Accounting Officer, has been appointed the interim CFO. She joined the bank from Florida Community Bank in 2016. She started her career at PricewaterhouseCoopers.

SEC filing – Spirit of Texas – CFO passes away

Health services company begins search for new CFO

Larry McAfee, CFO of US Physical Therapy, has announced he will retire in October 2020. He turns 65 later this month. Mr McAfee has been CFO since joining the company in 2003. He also joined the board the following year.



The company is based in the Medical Center and has a market capitalization of $1.5 billion. The company operates 574 physical therapy clinics in 41 states. It also manages 26 physical therapy facilities for third parties (primarily hospitals) as well as having an industrial injury prevention business.

The company has started a formal search for a new CFO and expect to have a new person in place by the summer. Mr McAfee has a base salary of $500,000.

SEC filing – US Physical Therapy CFO retirement

CFO at seismic company steps down

Steve Bate, the CFO at ION Geophysical, will be stepping down from the CFO role, effective February 1. Mike Morrison, currently VP of Finance and Treasurer, will become the interim CFO. Mr Morrison has been with ION for 17 years.



ION Geophysical provides seismic services to the oil and gas industry and has its head office in west Houston. It has a market capitalization of $126 million.

Mr Bate joined ION in 2005 and became CFO in 2014. After stepping down as CFO, he will remain with the company as Strategic Advisor to the CEO until the end of June.

Mr Bate will receive a severance payment of $750,000, which is two times base salary. Of this, $187,500 will be paid in January 2021, the rest will be paid over 18 months, starting in January 2021. He will also receive a one-time payment of $281,250, representing his 2019 target bonus. This will be paid by February 2020.

In addition, 89,430 shares of restricted stock will become fully vested. This is worth about $0.5 million.

In June, former CEO Brian Hanson left the company with a large severance package. He was replaced by Chris Usher, VP of Operations Optimization.

https://www.prnewswire.com/news-releases/ion-announces-cfo-transition-300979596.html

 

Drilling Contractor appoints new CFO

Noble Corporation has appointed Stephen Butz as its new CFO. He replaces Adam Peakes who left in September.

The company is an offshore drilling contractor. It has its registered head office in London but its operational head office is in Sugar Land.



Mr Butz has relevant experience, having been the CFO of fellow drilling contractor, Rowan Companies from December 2014 until its merger with Ensco in April 2019. Between 2005 and 2014 Mr Butz worked at Hercules Offshore in various financial roles including CFO. Prior to that, he even served as a consultant to Noble.

Mr Butz will receive a base salary of $550,000 and a cash sign-on bonus of $1.1 million. After the appointment was announced, the share price of the company rose 15 cents to $1.08. The company has a market cap of $233 million and debt of $4 billion.

Mr Peakes was paid $450,000 and received a severance of $1 million.

SEC filing – Noble Corp CFO appointment

Newly merged oilfield services group replaces CFO after two months

Nextier Oilfield Solutions, formed from the merger of C&J Services and Keane Group in October 2019, has announced that CFO Jans Kees van Gaalen has left the company. He will be replaced by Kenny Pucheu, who was the VP of Finance of Keane prior to the merger.



Mr van Gaalen was the CFO of C&J, though he only joined the company in September 2018. Greg Powell, the former CFO of Keane, became Chief Integration Officer, while the CEO of the combined group is Robert Drummond, ex CEO of Keane.

According to documents filed as part of the merger, Mr van Gaalen will receive a cash severance payment of $2.7 million. His base salary was $500,000.

Mr Pucheu joined Keane in 2016. Prior to that he spent 15 years with Schlumberger. He will receive a base salary of $375,000.

The current market capitalization of the combined group is $1.3 billion. That’s below the value at the time the deal was announced in June 2019 ($1.5 billion) but above the value when the deal closed ($1 billion).

SEC Filing – Nextier CFO transition

 

Long-time Schlumberger CFO steps down

Long-time Schlumberger CFO Simon Ayat has announced he is stepping down, effective January 22, 2020. He will be replaced by Stephane Biguet, who is currently the VP of Finance for the company.



Mr Ayat joined Schlumberger in 1982 and has been its CFO for the past twelve years. He has a base salary of $1 million, the largest base salary of Houston-area CFOs. After he steps down as CFO he will serve as Senior Strategic Adviser to the company for a period of two years. Mr Ayat will continue to receive his salary and his stock options will continue to vest. He will also be awarded more performance stock options in January 2020.

His exit contract mirrors that given to former CEO Paal Kibsgaard who left the CEO position in July 2019. There had been rumors in the press circulating since last year that Mr Ayat intended to step down. My guess is that he agreed to stay on, pending the CEO transition to Olivier Le Peuch.

Mr Biguet joined the company in 1995 and has served in various financial roles at the company. He will receive a base salary of $770,000

 

SEC filing – Schlumberger – Ayat

 

 

CFO of Frac sand company resigns

Laura Fulton, CFO of Hi-Crush, has resigned, effective 31 December 2019, to pursue another career opportunity.

Hi-Crush has its head office in the Galleria and is a provider of proppant and logistics solutions to the oil and gas industry in North America.



The company went public in 2012 and rode the boom and bust in the fracking industry. At its peak it had a market capitalization of over $1.3 billion. The company currently has a share price of $0.70 and a market capitalization of $69 million.

Ms Fulton has been the CFO since April 2012, joining just prior to the Initial Public Offering. She is also a non-executive director at Targa Resources. Before Hi-Crush she worked at AEI, an energy infrastructure company, and LyondellBasell (for 12 years).

Phil McCormick, VP of Finance, has been appointed as the new CFO. He joined the company in August 2018. Prior to that, he held several positions over nine years at KBR, including Treasurer. He also worked at LyondellBasell for 11 years. Mr McCormick started out at Coopers and Lybrand.

Mr McCormick will receive a base salary of $300,000. Instead of an annual bonus for 2020, he will also receive a retention bonus of $250,000 that will be paid in the summer of 2021.

SEC filing – Hi-Crush