The head of Linn Energy LLC (NASDAQ: LINE), Mark Ellis, is eligible for a $6.9 million cash award this year, according to a regulatory filing.
Linn Energy is a MLP hit hard by the more than 70% drop in crude prices and has been exploring strategic options to fix its balance sheet.
The company said in a filing with the U.S. Securities and Exchange Commission (SEC) on Feb. 4 that its board altered its compensation plan to enable the company's executives to earn cash compensation in 2016.
"Retaining key leadership and our talented employees is a top priority for Linn Energy as we engage in this process and maintaining continuity of leadership will help secure the best possible outcome for the company," a company spokesman said on Feb. 5.
Linn's board approved cash incentive awards totaling about $15 million for six executives, including its CEO, Ellis.
The executives must meet certain targets to receive the incentive payments, but those targets were not spelled out in the regulatory filing.
Offering executives financial incentives to stay through tumult, be it a merger or restructuring, is a common practice.
Linn units were trading around $30 in mid-2014 when crude oil was around $100 a barrel. On Feb. 5, the stock closed down 58% at 50 cents per unit. MLPs trade in units, rather than shares.
Recommended Reading
Private Equity: Seeking ‘Scottie Pippen’ Plays, If Not Another Michael Jordan
2024-01-25 - The Permian’s Tier 1 acreage opportunities for startup E&Ps are dwindling. Investors are beginning to look elsewhere.
Some Payne, But Mostly Gain for H&P in Q4 2023
2024-01-31 - Helmerich & Payne’s revenue grew internationally and in North America but declined in the Gulf of Mexico compared to the previous quarter.
Uinta Basin: 50% More Oil for Twice the Proppant
2024-03-06 - The higher-intensity completions are costing an average of 35% fewer dollars spent per barrel of oil equivalent of output, Crescent Energy told investors and analysts on March 5.
In Shooting for the Stars, Kosmos’ Production Soars
2024-02-28 - Kosmos Energy’s fourth quarter continued the operational success seen in its third quarter earnings 2023 report.
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.