Nabors Industries Ltd. Investors File Lawsuit Against Directors

If you purchased shares of Nabors Industries Ltd. (NYSE:NBR) and currently hold those NYSE NBR shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Nabors Industries
Case Name: 
Nabors Industries Shareholder Derivative Action 11/18/2011
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: NBR
Lawsuit Overview
Type of Lawsuit: 
Shareholder Derivative Action
Date Filed: 
11/18/2011
Summary: 

San Diego, Nov. 18, 2011 (Shareholders Foundation) -- An investor in Nabors Industries Ltd. (NYSE:NBR) shares filed a lawsuit against certain former and current directors and officers of Nabors Industries Ltd over in connection with allegedly excessive and improper compensation to certain executive officers at Nabors Industries.

According to the complaint the plaintiff alleges that certain defendants have wrongfully caused and alleged Nabors Industries Ltd to grant allegedly excessive and improper compensation to certain Nabors Industries; executive officers at the expense of the company and its shareholders.

Despite that Nabors Industries’ annual Revenue rose from $3.55billion in 09 to $4.21billion in 2010, its annual Revenue dropped from $5.33billion in 2008. Additionally even though Nabors Industries’ Net Income rose from a Net Loss of $85.55million in ’09 to $95.44million in 2010, its Net Income fell from $865.70million in 2007, respectively $475.74million in 2008.

Further, shares of Nabors Industries Ltd. (NYSE:NBR) increased from $8.58 per share in March 2009 to almost $32 per share in April 2011. However, NYSE stocks traded in 2008 as high as over $49 per share. Additionally since April 2011 NYSE NBR shares fell to as low as $11.74 per share.

Nevertheless, certain executive officers received substantial compensation. The Chairman of the Board and former CEO of Nabors Industries Ltd. earned in 2008 a Total Compensation of over $71million and the Deputy Chairman of the Board, President and COO received a in 2008 a Total Compensation of almost $24million. Furthermore, the former CEOs salary rose from 2008 to 2010 from $875,000 to $1,235,000 and the COOs pay increased from $700,000 in ’08 to $1,045,000 in 2010.

Shareholders voted at its annual general meeting on June 7, 2011 with over 57% against the compensation program.

Then on October 28, 2011 the board of directors announced that it has appointed a new CEO. The plaintiff alleges that the board also announced on the October 28, 2011 that Nabors Industries would be making a ‘constructive termination’ payment to its former CEO in the amount of $100million, plus additional compensation, despite the fact that he is to remain with the company as Chairman and put in perspective, the payment to the former CEO exceeds the company’s third quarter 2011 profits by over $25million.