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C&J Energy Services SEIP Approved

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The U.S. Bankruptcy Court approved C&J Energy Services’ senior executive incentive plan (SEIP).

As previously reported, “In the months leading up to the Debtors’ bankruptcy filing, the Debtors and their Compensation Committee recognized that the company needed to do something meaningful to incentivize the Senior Executives in the face of the extra challenges at the company. Among other things, due to their financial condition and the realities of the oil and gas marketplace, the Debtors had not paid any annual cash bonuses in 2015 (typically paid at the end of each calendar year), and had cut base salaries.”

Court-filed documents continue, “The Debtors also did not grant annual equity awards in 2016 (typically granted in February or June of each year). While the Debtors did grant equity awards in 2015, due to the drastic decline in share price, however, the amount of shares needed to deliver value in 2016 would have been massive and unduly dilutive of the Debtors’ other shareholders. Additionally, the Debtors’ earlier equity grants to the Senior Executives are of no value, given that the Debtors’ current share price renders outstanding option awards with negative value and that all outstanding restricted shares will be cancelled at confirmation, which is expected to occur prior to the next vesting event.”

In addition, “The SEIP encourages the Senior Executives to meet financial and safety goals and provides for the opportunity to earn cash awards if the Debtors obtain certain performance levels. The SEIP establishes payments for achieving separate performance goals, financial and safety related.”

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The post C&J Energy Services SEIP Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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