Oil CEOs Still Paid for Growth Despite Crude Glut, Moody’s Says
- Senior executives rewarded for increasing production, reserves
- Industry finding it difficult to change course, report finds
This article is for subscribers only.
U.S. crude supplies remain at the highest seasonal level in at least a decade, but drillers are still rewarding their top brass when they add to the glut.
Boosting production and reserves accounts for nearly a quarter of bonuses awarded to senior executives at North American exploration and production companies, Moody’s Investors Service said in a research report published Thursday. At some companies, executives’ share of bonuses tied to exceeding output targets is 40 percent or more.