Professor Elam

Weekend Oct 10 2020

A Modest Proposal for the Board of Directors

CEO pay has risen for the last four years for oil and gas drillers like the four above. But the returns have remained solidly negative in double digits.

Now understand I am a college professor who teaches accounting ethics covering corporate governance and transparency. These CEOs make 100x times my salary or conversely I make 1% of their compensation. Are they really worth that?

Fracking firms have gone for growth over income. One observer notes we have had ten years of consistent value destruction with management teams getting paid for it.

So to demonstrate how to incorporate ethics and governance on a practical basis, I hereby offer my service in replacement of your current CEO. My credentials follow.

I visited my first drilling rig at age 12 with Dad who worked for Gulf Oil at the time.

I have hands on experience with a family owned oilfield construction firm which operated in the Permian Basin.  I developed a personal relationship with Lava soap and Go Jo Hand Cleaner. I will be a hands-on CEO.

I have three college degrees and the CPA designation, I know my way around financial statements. My Series Seven license originally dates to 1973, I know my way around Wall Street as well.

I have written a weekly column on Texas oil and gas for twenty years

Regarding your loss situation, I was the Chapter Seven Bankruptcy Trustee for Midland for five years. I have hands on experience in returning value to creditors.

Oh, I won’t be moving to Houston or Oklahoma City or Findlay, Ohio. The oil is in the Permian Basin and the Eagle Ford not on Memorial Drive in Houston.   And having lived there for many years, I won’t need a map to find my way around Penwell, Goldsmith, Kermit , or Andrews.

So here is the deal. I will take the job at any one of the four for $2.75 M. That’s 25% of what you are spending now. This will build good will with employees and shareholders. AI could hardly do worse than the guys you are using now. I will ask for a four-year contract. Football coaches receive contracts. If they have a record like the coaches you employ now, they would have been long gone seasons ago.

You can e mail me at the link below.