Eugene Isenberg, the chairman and former CEO of Nabor Industries (NYSE: NBR), will drop his claim to a $100 million compensation package. The deal has been attacked by shareholder activists and the press
The company said
Mr. Isenberg has voluntarily terminated his employment agreement, effective December 31, 2011. Mr. Isenberg will continue as Chairman of the Board through his current term, which ends in June of this year. At that time, he will retire as a director and become Chairman Emeritus.
Mr. Isenberg receives no cash compensation in connection with the termination and waives all claims he might have had against the Company in connection with his employment agreement, including any claim that the October 28, 2011 appointment of a new chief executive officer constituted constructive termination entitling him to a $100 million payment. He also forfeits the payment of approximately $7 million in his deferred bonus account. The Company is reviewing its previously announced plans to record a $100 million contingent liability in the fourth quarter.
In consideration of his agreement to the foregoing terms, upon his death, Mr. Isenberg’s estate or trust will receive a payment of $6.6 million, together with interest. Additionally, Mr. Isenberg will retain certain benefits currently contemplated in the employment agreement, such as continued participation in the Company’s insurance and fringe benefit programs, the cost of which is immaterial to the Company.
Isenberg is the latest example of what some regulators, members of Congress and the Administration, and average citizens believe is the greed of American CEOs and bankers. Previous target of scorn include a number of banks CEO which include Lloyd Blankfein of Goldman Sachs (NYSE: GS). Several of these CEOs ran companies that received government bailouts.
Some of the Occupy Wall Street protests have been aimed at high pay packages. Isenberg may be the first real victim of that movement, and the ire of his own shareholders
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