Thursday, September 12, 2019

Houston, Texas-Based Tellurian Inc's Top-Tier Executives Average Pay Raise Was a Very Messy But Completely Off-the-Charts 421.0% Per Year During the Past Ten Years (2009-2018)

The third Democratic 2020 Presidential candidate televised debate will be held in Houston, Texas on September 12, 2019.  Texas is also the home state of Julian Castro and Beto O'Rourke, who have both gained significant momentum in the past month.  

 Three other Presidential candidates who have gained  a substantial amount of momentum in the past month or so are Elizabeth Warren, Pete Buttigieg and Cory Booker.  Let's hope one of them is the next US President and the other two are either the next US Vice President or members of the next US Cabinet.  If so, the next Administration will certainly be a smart one with at least two Rhodes Scholars.

The key issue to Texas citizens should be the huge and continuing Income Inequality Expansion which is at the core of many critical problems the US faces.

Thus I will be doing research and making posts on the average pay raise per year that the Top-Tier Executives of large Texas Companies were rewarded with in the past ten years.  I completed my study of large Texas Non-Oil & Companies and now I am studying large Texas Oil & Gas Companies. 

The 52nd and last Texas Oil & Gas Company I am addressing here is Tellurian Inc, formerly named Magellan Petroleum.

From annual compensation information contained in Company 10-K/A and Proxy Statement filings with the US SEC, the chart at the very bottom below shows Tellurian Inc's Top-Tier Executives Annual Total Compensation for each of the two consecutive full years of employment for the past ten years.
  
Tellurian Inc's Top-Tier Executives Average Pay Raise was a very messy but completely off-the-charts 421.0% per year for the past ten years, which is by far the very highest of the 52 large Texas Oil & Gas Companies I have addressed.
  1. Tellurian +421.0% per year for the past ten years 
  2. RSP Permian Inc +281.7% per year for four years
  3. Kosmos Energy +264.0% per year for the past eight years
  4. Cactus Inc +243.0% per year for the past two years
  5. ProPetro Holding Corp +241.9% per year for the past three years
  6. Apergy +146.9%per year for the past two years
  7. Cheniere Energy Inc +141.9% per year for the past ten years
  8. Talos Energy +118.9% per year for the past two years
  9. Kinder Martin +115.8% per year for the past ten years
  10. Parsley Energy +72.8% per year for the past six years.
  11. Buckeye Partners +60.9% per year for the past ten years
  12. Texas Pacific Land Trust +57.5% per year for the past ten years
  13. Diamondback Energy +52.9% per year for the past seven years
  14. Oasis Petroleum +50.5% per year for the past nine years
  15. Targa Resources +46.9% per year for the past ten years
  16. Matador Resources +38.4% per year for the past eight years
  17. Blackstone Minerals LP +36.1% per year for the past five years
  18. Enlink Midstream +35.7% per year for the past seven years
  19. USA Compression Partners LP +32.9% per year for the past eight years
  20. Concho Resources +31.2% per year for the past ten years
  21. Western Refining +25.8% per year for eight years
  22. Columbia Pipeline Group +25.2% per year for three years
  23. Enterprise Products Partners +25.1% per year for the past five years
  24. Western Gas Partners +23.5% per year for the past five years
  25. Marathon Oil +23.3% per year for the past ten years
  26. CVR Energy +21.9% per year for the past ten years
  27. Andeavor Logistics LP +20.6% per year for the past seven years
  28. Energy Transfer Companies +19.2% per year for the past ten years 
  29. Andeavor +18.1% per year for nine years
  30. NuStar Energy LP +17.6% per year for the past ten years
  31. FMC Technologies +17.1% per year for seven years
  32. Spectra Energy Corp +16.4% per year for seven years
  33. ConocoPhillips +14.8% per year for the past ten years
  34. Pioneer Natural Resources +14.4% per year for the past ten years
  35. Halliburton +14.3% per year for the past ten years
  36. Occidental Petroleum +14.3% per year for the past ten years
  37. Patterson-UTI Energy +14.0% per year for the past ten years
  38. National Oilwell Varco+13.1% per year for the past ten years
  39. Newfield Exploration +12.8% per year for nine years 
  40. The New Baker Hughes, a GE Company +12.2% per year for the past three years  
  41. HollyFrontier Corp +11.2% per year for the past ten years.
  42. Plains All America Pipeline +10.4% per year for the past ten years
  43. Cabot Oil & Gas +10.3% per year for the past ten years
  44. Valero Energy Corp +10.1% per year for the past ten years
  45. The Old Baker Hughes Inc +9.9% per year for eight years excluding Golden Parachutes Pay
  46. Schlumberger Limited +9.6% per year for the past ten yearss a New York Times
  47. Apache Corp +8.4% per year for the past ten years
  48. Noble Energy Inc +6.5% per year for the past ten years
  49. Phillips 66 +5.4% per year for the past five years
  50. EOG Resources +5.1% per year for the past ten years
  51. Exxon Mobil +1.2% per year for the past ten years
  52. Anadarko Petroleum +1.1% per year for the past ten years
There have been many US Government laws enacted in the past two decades that have substantially increased income inequality expansion, but none more so than the Trump Tax Cuts Act.   

On the other hand, the only highly effective US Government law enacted by either party in the past two decades that has substantially reduced income inequality expansion is Obamacare.

My objective is to get a better handle on just why the US and particularly here Texas has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term annual pay raise percentages for the executives of a Company vs the many non-executive employees of a Company, coupled with the stock price appreciation subsequent to the time the company executives were rewarded in their pay with stock equity compensation.

To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed, simple but effective Fair Pay Raise Income Inequality Narrowing Company tax incentives for rewarding non-executive employees with fair pay increases ..... the carrot ..... and Company tax disincentives for rewarding executive employees with clearly excessively high pay increases ..... the stick.  I am certain ..... it is simple math ..... that this tax proposal would be very effective in substantially reducing the huge income inequality expansion that has occurred for decades in annual percentage pay raises between company executives and the rest of the company employees. 

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages, including those retired.

Also, the US Government should require all US Corporate Boards to include at least one worker representative and to exclude any Company Executive.

Further, the US Government should ban Golden Parachutes.

FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec June June June June June June June
Tellurian Inc 2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Gentle CEO  N/A   N/A 
Teague COO  N/A   N/A 
Lafargue CFO          898     13,600     13,600          316          353          633          696       1,050       1,050          355
Belhumeur General Counsel  N/A   N/A 
Wilson Former CEO          366       1,497       1,565       1,244       1,244          402
Brannum General Counsel           1,049          820
 Totals           898     13,600     13,600          316          719       2,130       2,261       2,294       3,343       1,577
Annual % Change vs Prior Year -93.4% 4203.8% -66.2% -1.4% 112.0%
5 Year Average Per Year % Change 830.9%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
June June June June June June June June June June
Tellurian Inc 2013 2012 2012 2011 2011 2010 2010 2009 2009 2008
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Lafargue CFO          355          872  N/A   N/A 
Wilson Former CEO          402          586
Brannum General Counsel  N/A   N/A 
Hastings Former CEO          389          354          354          340  N/A   N/A 
Filipos Controller  N/A   N/A 
Samela VP New Ventures          231          232          232          248
Davies CEO          997          398
 Totals           757       1,458          389          354          354          340          231          232       1,229          646
Annual % Change vs Prior Year -48.1% 9.9% 4.1% -0.4% 90.2%
5 Year Average Per Year % Change 11.1%
10 Year Average Per Year % Change 421.0%


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