Nabors' Chairman Jet Use Gets SEC Attention

The U.S. Securities and Exchange Commission (SEC) is investigating the perks received by Nabors Industries Chairman Eugene Isenberg and the company's officers and directors, including their use of non-commercial aircraft.

Oil drilling contractor Nabors disclosed the SEC inquiry in a regulatory filing made Nov. 9. The Bermuda-based company received an informal inquiry from the SEC on Sept. 21.

The Wall Street Journal reported that, under SEC rules adopted in 2006, companies generally must annually disclose the cost of executives' personal use of corporate planes if it exceeds either $25,000 or 10 percent of the cost of all perks.

A company spokesperson previously had said that the company was in compliance with all IRS guidelines and SEC disclosure requirements in regards to executives' use of company aircraft. Federal Aviation Flight records had shown Nabors' jets making frequent stops in Palm Beach, Fla., and Marthas Vineyard, Mass., where Isenberg has homes.

Isenberg received US $100 million for relinquishing his role as CEO; he remains chairman of Nabors' board of directors. Anthony Petrello was appointed the company's new CEO in October.

A clause in Isenberg's contract entitles him to a $100 million payout under a number of scenarios, including his removal as either CEO or chairman, even though Isenberg is not leaving the company.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com

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C.Nair | Nov. 15, 2011
I WORKED WITH NABORS AS A RIG MANAGER 10 YEARS AT SAUDI, THEY DINT PAY MY 12 DAYS SALARY, AND MY 10 YEARS SERVICE MONEY ALMOST 50,000 $ , THEY MAKE ME FOOLISH AND TERMINATE WITH OUT ANY REASONS. I REQUEST SEVERAL TIMES BUT NOW ALMOST 3 YEARS COMING APRIL 2012, THIS MY HARD EARN MONEY, I WORKED SINCERELY AND HONESTLY. BIG PEOPLES ARE TAKING HUGE AMOUNT FROM THE COMPANY, POOR PEOPLES ARE WORK HARD THEN THEY THROW LAST MOMENT ON TRASH, GOD BLESS FOR REST OF EMPLOYES AND GOOD LUCK.

Gracy | Nov. 14, 2011
This makes me sick. Nabors laid off 5,000 workers, put freezes on hiring and incremental worker cost of living increases- so this guy can have a $100MM parachute clause while traveling between his two homes in a private jet. I hope he goes to jail!

Bossman | Nov. 14, 2011
Hey Trish, Get off the internet and get back to loggin that well, young lady! Grown folks are talking here.

johnny | Nov. 14, 2011
I agree with Williams statement " JUST CROOKS" even in the far north they took a company away from a widow and put her on welfare all for profit.

william | Nov. 14, 2011
THIS WOULD MAKE CLAIR NABORS ROLL OVER IN HIS GRAVE IF HE KNEW HOW HIS COMPANY IS BEING RUN. NABORS WAS AN EXCELLENT COMPANY IN THE 70 AND EARLY 80S, NOW THEY ARE JUST CROOKS

Chris | Nov. 12, 2011
$100 million? What could he have possibly done to EARN that much money? Forget the jet; look into that ridiculous payout.

trish | Nov. 11, 2011
Are they investigating the use and abuse of Air Force 1 and 2?


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