If that’s not disgusting enough, Chesapeake $CHK filed a classic Friday after market close 8-K that disclosed its executives will be getting $25 million upfront because they are not properly “motivated and incentivized” with the current compensation program.
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First and foremost I am not nor never have been an employee of CHK. However, in addition to owning CHK stock, I own royalties, overriding royalties and non op working interests under CHK operated leases and have been dealing with CHK since 2003. I even knew and dealt with the Big A himself. Prior to 2013 most of the CHK employees I dealt with were courteous and professional - even CHK's outside "hired guns" legal counsel. After Mr. Lawler was given the CEO position by Mr. Ichan, business relations have been less than honorable - not because of the fine people that continue to labor at CHK but because, in my opinion, the attitude, demeanor and directions coming from the C Suite. Most particular are the ever increasing deductions for gathering, transportation and marketing from royalty owners (even owners with no cost provisions in our oil and gas leases). My latest check GTM deduction was 54.12%. I have no way of knowing but I seriously doubt some wayward soul in Accounting is imputing these deductions on his/her own accord. Who knows - maybe Douggie, Delly and their consigliere Jimmy needed our money for the prepaid - in cash - $25 Million motivation fees – to themselves!
Please - if any one in accounting decides to walk away from "The Outfit" - stop by the US Attorney's office on West Park Avenue and "drop dime" on this possible criminal behavior. Your royalty owners will thank you.
Hey contractor it’s called supply and demand. Read about it.
Gents/Ladies, The field contractors,(Techs),did take a pay cut. This was just after CHK asked for a 25% reduction in charges. Some lowered their Total Invoice charge by 10%, but kept Techs pay the same. I know this, because I have 6 Contract Techs working for me. I do not work in a Vacuum in OKC.
@avu+14TwcRgW
No worries, and I agree there are lots of people who we'd all think don't deserve to even keep jobs that stay on and get promotions and even bonuses while others good folks are laid off or cut short. Definitely ain't fair!
My apologies. I am not trying to mislead anyone. In my sector of this business, anyone who is not a company employee, is called a field hand. I am a proud contractor and I understand there are no guarantees. It’s just a little galling to be told you have to take a pay cut, only to see your company supervisors, who make mistake after mistake, may have received a bonus. It could have been worse, I guess, as I know people who have worked for Chesapeake in the past who were not paid for their work.
@zpw+14TwcRgW
RE: 42 workers who took pay cuts while "in-house" employees got bonuses
Are you contractors? That language indicates you are. That's a whole different ball game than how you're painting it. You make it sound like field hands got cuts while corporate got bonuses. Not true for employees.
Contractors are always at risk. That's why they're hired as contractors. They ebb and flow as needed.
I assure you I, and the 42 others I worked with that took a forced pay cut to keep our jobs, are not trolls. Just because you are not aware of what is happening, does not make it a lie. And having been in the oil and gas industry over 20 years, I am well aware of the ups and downs. I love this work and hopefully will get to continue it one day.
Anyone who says field workers (or anyone) got a cut in pay is just a troll. Just not true. Some people got laid off which s—s but is reality in oil and gas. S—s for the IT worker but you don’t keep more employees than you need to operate the business and instead cut pay of anyone else (ceo included).
They justify this the same way they always have every time they’ve cheated their workers. I’ve heard plenty of horror stories through the years of workers in the field losing thousands of dollars due to non-payment. Thankfully, I wasn’t one. But, many of us in the field all had our pay cut a few months back, “because we had to cut costs in order to save jobs,” yet 2 weeks or so after that, we read on this site that the in-house employees had just received bonuses.
Nauseating
These guys, personally, are incompetent. Everyone in the industry and everyone on the street knows it. The assets should just be auctioned off. You can leave the field staff. All the corporate should go.
Squeeze what’s left of the prune and then file Chapter 11. Smart.
How can they justify this when you’re cutting $50K salary IT workers?
Similar behavior if management sides with the debt holder like James Bennet Sandridge....get a precarious comp package post Ch11. Either way shareholders get taken.