Twin Butte Energy Ltd TBTEF

RE:RE:Change of Control Management Payments

[PetroExplorer]

It is standard for management to get change of control payouts: they always look out for themselves.  This one is interesting, because they had to negotiate their payouts down, in order to close the deal, from what was previously stated in their filings.

Typically new management comes in, and "buys in" to the company, in some kind of private placement.  But unlike a common investor, they get the severance clause if things go south, as well as having collected a good salary all along, which if invested properly in low interest rate GIC's, earns them a good rainy day fund.

The typical small investor is worse off if he is working for an oil and gas company, as he loses his investments, but also has to hope he still has a job, while trying to dodge various layoff notices, and can only hope the oil prices go up, to return the industry to some normalcy.