Eugene Isenberg Of Nabors Industries To Net $100 Million For Dropping CEO Duties

As most Americans have watched their incomes fall during the recession and recovery, one CEO is netting a huge cash payment for relinquishing some responsibilities.

Eugene Isenberg will get $100 million in cash for dropping his title as CEO of Nabors Industries, the Wall Street Journal reports. Isenberg, who will retain his title as chairman of the oil-drilling company, will net the payment due to a clause in his contract that was triggered "as a result of this change in responsibility," according to a regulatory filing reported by the WSJ.

Isenberg is just the latest in a long line of CEOs to rake in huge payments after leaving a company or changing roles. Douglass Foshee, CEO of El Paso -- the natural gas pipeline operator that was recently acquired by Kinder Morgan earlier this month -- is eligible for a $91 million exit package if he leaves within two years of the acquisition, which is what Foshee says he plans to do.

Other CEOs have taken home even larger exit packages after their companies were acquired. The heads of North Fork Bancorp and Gillette raked in $185 million after their companies merged with others, according to a separate WSJ report.

Some corporate chiefs received millions in severance even after tumultuous tenures with their companies. Leo Apotheker, the former CEO of Hewlett-Packard, netted a $13.2 million severance package after a rocky 11-month run at the company's helm, The New York Times reports. Carol Batz, the former Yahoo chief, took home almost $10 million after she was fired from the company.

CEO pay has gotten so huge that at most firms it's larger than what they pay in taxes, according to a study by the Institute of Policy Studies cited by the Washington Post. A quarter of the highest paid executives earned more than their company's tax expense in 2010, the study finds.

And CEO pay isn't expected to dry up any time soon, even as the economy continues its anemic recovery and most Americans watch their incomes fall. CEO pay went up 27 percent on average in 2010, according to Labor Department figures, cited by PBS. At the same time the U.S. median annual wage dropped in 2010 for the second year in a row to $26,364.

"The gap is accelerating. It is bigger than ever," James Stewart of the NYT said in an interview with PBS earlier this month. "It's very hard for people to understand why executives, even at companies who are failing, are taking home these multi-multi-million-dollar pay packages."

And CEOs aren't just demanding huge pay checks, they want perks too. Corporate chiefs are still getting access to jets, expensive financial planning services and country club memberships, among other perks, even as their companies cut costs and in some cases lay off staff, according to an analysis by USA Today.

CORRECTION: An earlier version of this post misstated that the U.S. median income fell to $26,364. The U.S. annual median wage fell to $26,364.

Comments

[onegr8writer]

10:19 AM on 11/06/2011

The stock price was $0.37 per share in 1987 and increased 50-fold over Mr. Isenberg's tenure. My case in point . This is a quote from Nabors web page. There are thousands of shareholders who praised this man and approved his package. If you're a shareholder, stop blaming the CEO's , blame yourself !!

[onegr8writer]

10:08 AM on 11/06/2011

I don't agree with the sums they receive...however...these are publicly held companies people, which means that the shareholders ( common people like us ) indirectly approve and allow this compensation. For the most part, as long as shareholders are happy with their returns, they don't care how much the CEO earns. So...blame the shareholders.

[dancingbones]

05:48 PM on 11/02/2011

For quitting, he gets as much as about 90 K-6 teachers would make in their entire lifetimes, each one teaching from about 600 to 1000 children over that time, depending on grade level. So this man's (of course) severance is worth the education of 24,000 American children. Ya think we have our national priorities a bit askew??

[s5cat2dog]

01:11 PM on 11/02/2011

I agree to not be CEO too...and I'm starting right NOW for half the price. Who do I contact for MY 45 million?

[Joseph Veverka]

08:15 AM on 11/02/2011

Most finanical contracts have some non-proformance clause in them. Anything less is defrauding the stock holders by the good old boy club board of directors. If I had a large share say 3 or 5% of a public corporation I would be included to fight a pat on the back to a CEO that has no reason to be a success when he can force his way out and recieve millions for nothing.

[cpadmitchell]

05:46 AM on 11/02/2011

These minor payments to executives explain precisely why so many Americans oppose OWS--we love corporate largese and want to see more of these individuals amply compensated. Fox news applauds these payouts in opposition to socialism redistributing wealth.

[SimianNation]

12:16 PM on 11/02/2011

Actually, 65%+ support OWS.

[soopershrink]

12:20 PM on 11/07/2011

MINOR PAYMENTS??? Just how much $ do YOU have that you have consider a hundred million to be a MINOR payment, or are you one of those fools who continue to defend your masters, just because you are told to do so? By the way, the wealth was already redistributed from the middle class to the already rich and you didn't even realize it! The OWS protesters do realize it and that's what they're protesting! Do you understand now or do need me to type even slower?????

[champagne charlie]

05:21 AM on 11/02/2011

And they don't understand the "occupy Wall Street" movement. Clueless, totally clueless!

[Mtball228]

05:09 AM on 11/02/2011

Public Hanging for "GREED" !

[Denizio]

03:51 AM on 11/02/2011

Any one who collects that kind of money for a buy out is a pig.

[vicoroni07]

03:10 AM on 11/02/2011

Sorry about the way my comments came. I should have copied and pasted the last part first.. But I will learn.

[vicoroni07]

03:08 AM on 11/02/2011

1. No Tenure / No Pension. A Congressman collects a salary while in office and receives no pay when they are
out of office.

2. Congress (past, present & future) participates in Social Security. All funds in the Congressional retirement
fund move to the Social Security system immediately. All future funds flow into the Social Security system, and
Congress participates with the American people. It may not be used for any other purpose.

3. Congress can purchase their own retirement plan, just as all Americans do.

4. Congress will no longer vote themselves a pay raise. Congressional pay will rise by the lower of CPI or 3%.

5. Congress loses their current health care system and participates in the same health care system as the
American people.

6. Congress must equally abide by all laws they impose on the American people.

7. All contracts with past and present Congressmen are void effective 1/1/12. The
American people did not
make this contract with Congressmen. Congressmen made all these contracts for themselves. Serving in
Congress is an honor, not a career. The Founding Fathers envisioned citizen legislators, so ours should serve
their term's, then go home and back to work.

If each person contacts a minimum of twenty people then it will only take three days for most people (in the U.S.) to receive the message. Maybe it is time.

THIS IS HOW YOU FIX CONGRESS!! If you agree pass it on..

[vicoroni07]

03:06 AM on 11/02/2011

This might be the answer...it said my blog is 182 words to long. so it is a 2 part blog. Assuming you feel that our government is basically corrupt, consider a proposal by Warren Buffett, "I could end the deficit in 5 minutes," he told CNBC. "You just ...pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election. The 26th amendment (granting the right to vote for 18 year-olds) took only 3 months & 8 days to be ratified! Why? Simple! The people demanded it. That was in 1971...before computers, e-mail, cell phones, etc. Of the 27 amendments to the Constitution, seven (7) took 1 year or less to become the law of the land...all because of public pressure. Warren Buffet is asking each addressee to forward this email to a minimum of twenty people on their address list; in turn ask each of those to do likewise. In three days, most people in The United States of America will have the message. This is one idea that really should be passed around.

*Congressional Reform Act of 2011*
( Part One )

[wwhatever747]

03:03 AM on 11/02/2011

CEO: Coughs Excessively Overdosed.

[dhull1392]

05:11 AM on 11/02/2011

CRAZY... ECCENTRIC....OVERPAID Too bad there isn't a G in there for GREEDY

[wwhatever747]

03:00 AM on 11/02/2011

Thats why we need "Men In Black Enterprises" to send out men in black to execute "hang" every CEOs that makes unfairly big bucks after so many employees suffered cut backs or layoffs results of such things. There will be copycat CEOs after this one for easy money out.

[john1440]

02:55 AM on 11/02/2011

What a great use of our oil company subsidies! Yes, Congress still says we need them. Our government is so corrupt that I don't see any hope for change. Obama promised that, but either he was lying to get into office, or quickly became one of them and abandoned everything he stood for. Both parties are fighting each other, not for America, not for humanity, but to beat the other party and become king of the hill. Then they can reward their patrons, using our tax dollars, who in turn will reward them with generous donations, called honoraria, etc. out of part of those tax dollars. We are paying the corrupt and crooked to pay each other out of our own money.

[dhull1392]

05:31 AM on 11/02/2011

Correction: REPUBLICANS say we should keep the oil loop holes... and give the very rich tax breaks so it will trickle down..... and NEVER increase taxes on our corporations and the rich! (most of them keep their money overseas anyway) Just listen to their line! I think the "Occupy Wall Street" movement will grow tremendously in the next year. All the people are fed up with our current perverted capitalistic system. It consists of one big bed with congress, wall street, the Fed, and the president under the covers playing "Switch"!