Schlumberger CEO Gets $20.8MM Pay as Oil Markets Rebound

Schlumberger CEO Gets $20.8MM Pay as Oil Markets Rebound
Schlumberger CEO Paal Kibsgaard received $20.8 million in reported pay for 2017, a 12% boost from the prior year as the global oil market rebounded.

(Bloomberg) -- Schlumberger Ltd. Chief Executive Officer Paal Kibsgaard received $20.8 million in reported pay for 2017, a 12 percent boost from the prior year as the global oil market rebounded.

The world’s biggest oilfield services provider reported the pay increase on Friday, almost two months after telling investors that the market is finally improving. The contractors of the oil patch, which are hired to drill and frack wells, were among the worst hit during the three-year crude-market crash, having slashed hundreds of thousands of jobs and incurring massive losses. 

Kibsgaard’s pay included a $2 million salary, a cash bonus of $4.28 million and $12 million in performance shares, according to a filing. This was the first year the reported disclosure shows the 50-year-old didn’t receive option grants, which were eliminated after investor feedback. The change means his equity compensation is tied more closely to the company’s strategy than market performance.

The pay increase came from an above-target payout for his cash bonus at 214 percent of his base salary. The bonus was dependent on earnings-per-share goals. In the prior year, he received 80 percent of his target bonus.

The Philadelphia Oil Services Index lost 19 percent, closing 2017 at its lowest end-of-year level since 2008. Oil explorers could boost international spending by as much as 8 percent this year, according to BMO Capital Markets. That’s good news for Schlumberger, which generates most of its sales outside the U.S. and Canada.

Schlumberger also reported that the CEO made 234 times more than the median employee’s $88,604. The pay ratio included employees from 135 countries.

With assistance from Jenn Zhao.To contact the reporters on this story: Alicia Ritcey in New York at aritcey@bloomberg.net; David Wethe in Houston at dwethe@bloomberg.net. To contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net Peter Eichenbaum.


WHAT DO YOU THINK?


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Dave C  |  March 12, 2018
Paal K is the worst CEO for Slb. All his ideas have been useless. This guy will destroy slb in the years to come. Board members please save the company.
Michael Boock  |  March 11, 2018
How Does a CEO Earn 20Million In a year When Workers on the ground that sweat blood earn basic wage ,, Greed Greed A real Unfair cockroach
KEITH ELLIS  |  March 09, 2018
how can this be right? How can it be right? SLB was the first company to fire employees at the first inkling of a downturn in the economy. All because of shareholders. The persons fired worldwide included many with several years yeomen service. All as a result of policy, directed by this man. Now, with the news of a possible financial boon, he is awarded several increases, not nominal mind you, but ridiculous increases. You destroy lives just so that you would have a "fatter bank account". This is blood money. What is the difference between him and a bandit?
David  |  March 09, 2018
What did Mr. Kibsgaard do to EARN this pay? If this wasn't such a crime levied against the employees and stock holders, it would be laughable. Mr. Kibsgaard has been a poor CEO from day one and really needs to go. I wish Schlumberger's board could bring back Andrew Gould!!!! No comparison in quality, intelligence and wisdom, not to mention class, between Mr. Gould and Mr. Kibsgaard.
JOHN  |  March 09, 2018
This is obscene! No one is worth this kind of compensations. How much the company people receive for their work which makes the company do well? This obscene inequality is what is destroying our country a little at a time. I am a free enterprise person, but not to this extend. Again, this is exactly what drives people to socialism. Where are the board of directors? Where are the company shareholders?
Chris  |  March 09, 2018
If the market rebounds wasn't related with his good work neither his performance as CEO, so it is insane that he has a bonus related with the market changes. As was mentioned before, he fire a lot of poeple trasnforming SLB in a living hell on earth with his personal project called "transformation", he decided to fire a lot of experience people and highly technical personal just to reduce costs, no matter the consequences, neither the mid term or long term impact. His project was focused in obtain results in short term and now the company is lacking of experience people to face the challenge and satisfy the customer needs. This is affecting the company performance (HAL is overperforming SLB continuously during at least the last two years)
Rimbun  |  March 07, 2018
He fired his workers and he is making hell of money...no pay increase for workers who work hard in the field...some of very hard work employees are gone within 24 hours time...but the company CEO got his salary increased 12%. He need to remember..without right employees and the hard work from them..Schlumberger is nothing and can't be the world top OnG service provider,


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