Tuesday, December 23, 2014

Walter Energy Awards Cash To Executives $WLT

For "excellent individual performance":

On December 19, 2014, Walter Energy, Inc. (the “Company”) entered into award agreements (each, an “Award Agreement”) with three of the Company’s current named executive officers, Walter J. Scheller, III, William G. Harvey and Earl H. Doppelt. The terms of the Award Agreements with such executive officers provide that they will receive a cash award (the “Award”), to be paid by the Company on the effective date of the Award Agreement, equal to a multiple of such executive officer’s current annual base salary. Pursuant to their respective Award Agreements, Mr. Scheller received an Award of $2,400,000 (or approximately 2.9x his current base salary), Mr. Harvey received an Award of $1,300,000 (or approximately 2.6x his current base salary) and Mr. Doppelt received an Award of $1,100,000 (or approximately 2.4x his current base salary). These awards are intended to recognize excellent individual performance and to retain the services of the executives for three full years in a challenging environment. Under the terms of each such executive officer’s Award Agreement, the executive officer will be required to repay the full gross amount of the Award to the Company if such executive officer’s employment with the Company is terminated by the executive officer without good reason (as defined in the Award Agreement), which would include a retirement by the executive officer without good reason, or by the Company for cause (as defined in the Award Agreement) prior to the third anniversary of the effective date of the Award Agreement.
Hilarious! It's not their fault that met coal prices plummeted, after all. That's cool they didn't want to spend the cash on bond repurchases at under 20 cents on the dollar. Why bother?


Stagflationary Mark said...

It takes a lot of excellent individual performance to move the stock's decimal point two places to the left! ;)

WLT Stock Price (April 2011 to today)

$141. -> $1.47

CP said...

What are the shareholders, ungrateful?

Who do they think stopped the share price from going down 99.5 percent??

CP said...

Plus, management avoided any exposure to rising interest rates. Genius.