WSJ: $100 Million Pay Day For Outgoing CEO

Gene Isenberg, former chief executive officer of Bermuda’s Nabors Industries Ltd., is slated to receive $100 million in cash after making way for a new CEO at the world’s largest land-drilling contractor, “The Wall Street Journal” reports today [Oct. 31].

The Hamilton-based company will record the sum as a contingent liability in the fourth quarter because of previsions in Isenberg’s employment agreement, Nabors said in a regulatory filing on Friday 28. Anthony Petrello, Nabors’s president, was promoted to CEO in place of Mr. Isenberg, who will remain as chairman.

Mr. Isenberg, 81, has led Nabors since 1987, building it from an Alaska-based driller with 38 rigs into a global operator with more than 1,200 rigs. The company hasn’t given a reason for the change in CEO. Mr. Petrello, 57, has served as the company’s president and chief operating officer since 1992.

According to an SEC filing from April 29, potential payments to Mr. Isenberg upon termination or a change in control include $100 million as well as about $26 million in stock and options. The same filing shows Mr. Petrello is eligible to receive payments of $50 million plus $6.6 million in stock upon termination.

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