* Says shareholders with 5 pct stake for 3 yrs can nominate
* Limits severance payments to 2.99 times executive salary
(Adds details from statement, background)
April 14 Oilfield services and drilling company
Nabors Industries Ltd said it would separate the roles
of chairman and chief executive after the tenure of CEO Anthony
Petrello ends and limit severance payments for executives.
Nabors said it was putting in place a proxy access policy
allowing any shareholder holding 5 percent stake for at least
three consecutive years following the 2014 annual general
meeting to nominate directors.
Nabors shareholders approved a non-binding proxy access
resolution in 2012, in the first instance such a proposal had
passed at a major company.
Severance payments for executives will be limited to 2.99
times their salary and bonus, Nabors said in a statement on
Shareholders California State Teachers' Retirement System
and Blue Harbour Group welcomed the steps.
Nabors rewrote Petrello's employment contract last year
after pressure from the California Public Employees Retirement
System and other pension funds to limit annual bonuses, among
Shareholder activists have vigorously lobbied to overhaul
executive compensation and raise shareholder returns in energy
companies such as Chesapeake Energy Corp, SandRidge
Energy Inc and Occidental Petroleum Corp.
Nabors reached an agreement last year with its largest
shareholder, Pamplona Capital Management, to name two
independent directors to its board after coming under pressure
over the underperformance of its shares.
The company, which has been led by Petrello since 2011, has
also started paying dividends, declassified the board and
restructured executive compensation to drive up investor
"These changes reflect the results of our commitment to
strengthening our corporate governance and compensation
practices, and open the door to an even more focused commitment
to the generation of long-term value for shareholders," Petrello
Nabors shares closed at $23.53 on Friday on the New York
(Reporting by Swetha Gopinath in Bangalore; Editing by Prateek