On 7th April, Hunting announced the retirement of CEO Dennis Proctor: https://www.investegate.co.uk/hunting-plc–htg-/rns/retirement-of-dennis-proctor-as-chief-executive/201704070700088531B/
This follows a very difficult period for the company and its shareholders, as it suffers from sharp cutbacks in CAPEX by the oil & gas industry.
I was shocked to read this today: https://www.investegate.co.uk/hunting-plc–htg-/rns/directorate-change-and-remuneration-disclosure/201709010700054964P/
A payment of US$1,688,350 will shortly be made to Mr Proctor which includes US$785,600 related to his service contract obligations with the balance reflecting a settlement in connection with the cessation of employment.
(in addition to which Proctor retains bonus and LTIP entitlements, though these may not amount to much in the light of the company’s continuing losses.)
Why does retirement result in the need for the company to make a huge payoff?
This seems to me to be a case of massive payoffs for (already wealthy) executives on retirement, whereas workers might be lucky to get a carriage clock!
I’d be interested in some informed views.
DISCLOSURE: I only have a token holding in Hunting, at present, for monitoring purposes.