Re: Abraxas Petroleum's Preliminary 2020 Outlook
Here is something Oasis is doing for 2020 that you won't see from Watson and his bloated, over-compensated board of directors:
2020 Executive Compensation Enhancements
Oasis has implemented a number of changes to its 2020 compensation program to further increase the management team's alignment with shareholders and the Company's strategic objectives. These changes follow the Compensation Committee's decision to reduce salaries and cash incentive payments in 2019 due to market conditions. Full details regarding the Company's 2020 compensation plan will be available in the Company's proxy statement, which will be filed in due course. Highlights of the plan include:
-- Reductions in annual cash incentive payments including salaries and annual cash incentive payments;
-- Updating annual scorecard metrics with items emphasizing corporate and shareholder returns;
-- Reductions in overall long-term incentives ("LTI") granted;
-- Increasing percentage of LTIs that are performance based;
-- Adding broad market indices to peer performance group to benchmark to both peers and broader market performance;
-- Implementing a maximum payout value for equity compensation; and
-- Adding an absolute total shareholder return ("TSR") modifier to the LTI that prevents payouts upon negative performance period TSR and pays at target upon achieving a performance period TSR of 8%, which is the long-term annual return of the S&P 500.
"The Oasis Board and management team strongly believe in implementing innovative ways to continue our leadership position in governance and ensure our best-in-class compensation program continues to evolve with the Company's strategy," said Bobby Shackouls, Chairman of the Compensation Committee. "The plan we have implemented for 2020 reflects significant input from our shareholders over the past year, and we are grateful for their ongoing feedback and dialogue. We are confident that the new features of our plan, including the addition of major indices such as the S&P 500 as part of our peer group, comparisons to broader market returns and capped payouts for our equity compensation, make Oasis an industry leader and an attractive investment opportunity for investors both in the energy space and more broadly. The steps we are taking for 2020, which were designed and proposed by management and endorsed by the Compensation Committee, are part of a continually evolving and forward-looking plan that is expected to ensure that the Oasis management team focuses on the factors that matter most to create value for shareholders."