Nabors Industries Limited (NBR) Chief Executive Officer Tony Petrello, the best-paid oil executive in the US, and his finance chief are getting salary cuts as the world’s biggest land-rig contractor confronts an industry downturn.
Petrello’s base salary for the first half of next year will be pegged to an annual rate of $1.53 million, a 10% cut from the current $1.7 million.
Chief Financial Officer William Restrepo is also getting a 10 percent cut in his annualized base salary, to $585,000, over the same period, the Hamilton, Bermuda-based company said today in a federal filing.
“The salary reductions do not affect the calculation or payment of any ancillary benefits,” Nabors said.
In 2013, Petrello’s total compensation included equity awards at $43 million when they were granted in March of last year, and he was granted $21.2 million in cash.
This year, his potential total compensation reached more than $100 million in July, before Nabors shares plummeted more than 50 percent in six months.
Oil-service companies and rig contractors are preparing for an estimated 25 percent drop in spending next year from explorers and producers after crude prices dropped to a five-year low.
Halliburton Co., the largest fracking services provider, said last week it was cutting 1,000 jobs in the Eastern Hemisphere.
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