Investors Push U.S. Shale Firms to Separate Executive Pay from Drilling

30 Sep 2017   Shale Oil

Activist investors are taking aim at U.S. shale producers, pushing them to stop rewarding executives for spending billions of dollars on new wells when crude prices are depressed. HOUSTON, Sept 29 (Reuters) – Activist investors are taking aim at U.S. shale producers, the companies most responsible for turning the nation into a global energy powerhouse, pushing them to stop rewarding executives for spending billions of dollars on new wells when crude prices are depressed. U.S. crude output has surged past 9 million barrels a day largely because of the shale sector, whose output this year is up 27.5 percent. The gains are fueled by a boost of about 50 percent in capital spending, benefiting executives come bonus time but crimping shareholder returns. Investors want the higher spending to go to dividends and buybacks, not more drilling. The shift they are seeking could dampen spending on new wells, chilling a […]

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