I am going to have to disagree with the last part of this statement to a certain extent. I worked at CHK and although I didn't leave to go to another O&G company, I know plenty of people who did and they all said they could get paid 20% more at other competing O&G companies. Now, this was in the land department so maybe the geologists and landmen got paid too much, but I think the lower level employees were paid about right if not a little low.
Warren - I believe it was a Reuters article in the past year (perhaps there's a link in this thread) that used several metrics to compare Chesapeake to others in the energy sector. I recall that CHK employees were overpaid and under-produced when compared with their peers. I'm not saying that they don't work their rear ends off over there, I'm just recalling that as a workforce they were overpaid and underperforming when compared with those from other companies.
I see your point. I knew several people at other companies who had the same title as I did and did about 50% more work. CHK had two people doing what one person should be doing and that was a big problem. That is probably where the overpaid part comes in. They were overpaid for doing just the work they were doing, but would be considered underpaid if they were doing what the peers at other companies were doing. Not sure if that make sense or not.
If the choice is between paying an HR person a $1 million a year in OKC, or some already rich investor in NYC gets and another 3 cents in his dividend check, I'll take the $1 million in OKC salary.
Paying 22 year olds with Business Degrees (at least Energy Management Degrees) $70k is actually about $5k below the industry average for newly graduated in-house landmen, and anywhere between $65k and $90k would probably be considered reasonable. Paying them $90to $100k+ right out of school and the crazy stock options they hand out in the benefits package there (for some,not all) is a little ridiculous, especially considering how overstaffed they are/how little work some of them are doing. I can't speak to other business degree focuses.
Regardless of the salary dump, these officers came in with Aubrey and had been there since not long after the company was founded. They probably weren't keen on hanging around anyway and I'm sure Lawler wants his own staff. It's just a benefit that he can hire them much cheaper. Also, as an SVP she was likely paid well over $1 million, especially when it comes to bonuses and stock.
How many Anadarko people have turned in their resignations to take those spots and others upcoming?
I guess the good news is American Energy Partners is hiring.
Yes, but typically mutual funds are not activist investors such as the case with Chesapeake and Sandridge. Carl Icahn doesn't give a crap about someones Fidelity 401K account. He cares about the few extra dollars in his own account. So once again, given the choice between a 7 figure HR salary or some extra dollars for Carl, I prefer the 7 figure local salary.
Why is CHK involved in every article about shady energy industry practices?
Unfair Share: How Oil and Gas Drillers Avoid Paying Royalties - ProPublica
CHK started another round of layoffs yesterday with more to come I'm sure.
I predict both Chesapeake and Sandridge will probably be a thing of the past in a few more years. Not to worry Aubrey will probably have his private company alive and well to at least take over where Chesapeake once was.
SD maybe...CHK, not a chance.
I wouldn't want to bet against SD & CHK being here a long time.
I also wouldn't want to bet against a guy who founded a company, grew it, and when the stock fell below $1.00, RE-GREW it to around $70/# before the global financial collapse.
Say what negative things you will about Aubrey, but remember that it was his aggressive application of fracking & horizontal drilling that produced so much natgas, and in turn drove down prices.
It seems Chesapeake is now on pretty firm footing and I'm not too worried about them.
SandRidge is a different matter and could easily be acquired. But they also employ only a fraction of the people. I would hate to lose them but if that came to pass I don't think it would have much of an effect on the local economy.
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