Cmon & all, $1 is a bit harsh but agree with concept & with no...

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Rob79

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17/01/15

18:06

Post #: 14599333
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Originally posted by cmonaussie ↑

Nice work Rob!

I agree that the company executives are not the ones responsible for the oil price. But they are responsible for the business risks and the operational execution.

Executives of microcap companies such as SSN and AKK need to take a long hard look at the structure of their compensation. Just like if they are not responsible for $50 oil they are not responsible for $100 oil either and the potential windfalls.

More executives of these minnows ought to do what the CEO of ZaZa did (a $27M MC and EV $104M, yep another indebted E&P). Bolding is mine http://phx.corporate-ir.net/phoenix.zhtml?c=68298&p=irol-newsArticle&ID=1930666

"President and CEO Todd A. Brooks today disclosed that the Compensation Committee has approved a proposal by the CEO to take a $1 salary for the next two years. Under the terms approved by the Committee, Mr. Brooks’ remaining short and long-term incentive compensation for that period will consist solely of equity grants or other equity-related compensation. Furthermore, the vesting of that compensation will be tied primarily to the Company’s achievement of further production and reserves growth."

"The elimination of my salary and adoption of STI and LTI performance hurdles for the next two years further aligns me with shareholders as we look forward to the delivery of continued production and reserves growth.”

Indeed it does Mr. Brooks

I know Terry Barr is revered on this forum as some iconic E&P genius but honestly guys call it how it really stacks up. If these executives really believe they are the ones making the difference, then earn your "sweat equity" through STI/LTI. Hell the job aint that difficult since Slawson is the operator. Maybe a $1 is a little cheap but surely $10K/mth with healthcare and a 401(k) plan on top of that should be sufficient. TB is not running a US sized small cap E&P even.

That would show something ....

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Cmon & all, $1 is a bit harsh but agree with concept & with no disrespect to many execs in all companies I find comparing the Salaries and also admin costs to be the hardest to make sense of and justify at times from the reports. Coy's put the least effort into explaining these which doesn't help.

Number of employees, Working interest levels, operatorship etc all complicate peer comparison. With low OP there may be more emphasis on explaining costs in the upcoming reports.
Enjoy your weekends

SSN Price at posting: 1.1¢ Sentiment: Hold Disclosure: Not Held
2 Upvote

0 Great analysis

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