Pressure hose

14 March 2013 By Robert Cyran Follow @rob_cyran

First they claimed the scalp of Chesapeake boss Aubrey McClendon for egregiously abusing his position. Now dissenting shareholders have all but ousted SandRidge’s Tom Ward and forced Nabors to cut pay. These are welcome victories in a sector notorious for big, mollycoddled egos.

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SandRidge Energy announced on March 13 that it had come to an agreement with TPG-Axon Capital. The activist hedge fund owns 7.3 percent of the oil company.
SandRidge will immediately appoint four directors nominated by TPG-Axon. The board of directors will complete a review of related-party transactions done by Chief Executive Tom Ward by June 15. The board will also decide by March 30 whether to dismiss Ward. If he is not fired by June 30, three current directors will resign and one additional TPG-Axon nominee will be elected to the board. That will result in TPG-Axon nominees forming a majority of the Board.
The board will also review the company’s strategy and costs, with a focus on reducing corporate costs and optimizing capital expenditure. Chief Operating Officer Matthew Grubb plans to resign, SandRidge said.
Separately, in a securities filing on March 11, Nabors Industries said that it will pay Chief Executive Anthony Petrello $60 million to give up potential bonuses and tie future compensation more closely to performance. The company had come under pressure from shareholders to reform its compensation practices.

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