Post by
bandit69 on May 21, 2021 2:24pm
How and why do People get to Keep Their Jobs
How Hansen, the one who was in charge that led to bankruptcy, got to keep his job is something I will never understand. Can't blame it on anything other than they didn't plan properly and were cash flow negative for years paying an illusory dividend when capital flowed freely. I wrote about this illusion for a long time that these dividends these o&g companies were paying were from debt and financings etc. Not real profits. This became immediately evident in 2015 for these oil co's and the spike went throught the heart when 2020 hit.
So many of these "management" teams have been able to keep their jobs after driving a company in to the ground....and that was during the GOOD times!! I can't even remember the names anymore but I believe Petro Bakken? was a prime example of several iterations and recapitalizations using the SAME "management" teams because they "had the expertise" about the assets....or, what I call the liabilities. Crescent Point was a template for story telling and I wrote in past that the previous management would continue to be serial acquirer creating zero shareholder value then when the game was over they would ride off in to the sunset after collecting a huge salary, dividends, bonuses etc and that is exactly what happened. Hardly any of these junior/intermediates made any profits or real returns even when things were good. So where do the abandonment liabilities go? to the taxpayer of course and every one of these salary suckers..."management" teams knew this is where they would go because the regulations allow for it in Alberta.
In the meantime, they paid themselves dividends, salaries and bonuses. They sure created shareholder value. But, hey, shareholders/investors let it happen and went along with it.