Following a period of severe under performance in 2002 and 2003, culminating in the 2003 full year loss of $418.1 million, the Board of Acergy (then Stolt Offshore) appointed Tom Ehret as CEO, together with a new senior team, to structure a turnaround plan and deliver corporate recovery. In 2006, Acergy delivered a full year profit of $236.7 million having returned to profitability as early as Q3 2004. The SMIP was structured to reward delivery of the turnaround plan, based on performance criteria measured and evaluated by the Board of Directors since 2003.
Some of the participants have exercised options under this plan and made an agreement to sell a proportion of their SMIP originated holdings. The participants in the SMIP taken as a whole are retaining some 50% of their existing shares and options.
Mark Woolveridge, Chairman, commented: "Tom Ehret and his team should be congratulated on their achievements since 2003; they have surpassed 98% of the performance targets associated with the SMIP and presided over an eight fold increase in market capitalization.
"I am pleased to see that, even after balancing their personal stakes, the senior management team still retain a large exposure to future stock price growth. Recognizing the need to retain this management team, and a wider group of managers, the Board has already implemented the next phase of incentive arrangements to retain staff."
Acergy S.A. is a seabed-to-surface engineering and construction contractor for the offshore oil and gas industry worldwide.
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