Sorry I made an error. It was even more. What I meant is that the $2.76M bonus was lumped in with those other "incentives" for $3,358,000.
That brings the cash to $4.9M, not $4.3M.
I noted Hession earns $100,000 per month in base salary alone. Oilhog asked for confirmation so here we go.
If you look at the proxy for 2015, page 20, you will see the comp table.
Hession's base salary for 2014 was $1,230,000. 2013 was pro-rated but as I recall it was based on $1.2M even so the extra $30k is likely an inflation adjustment of exactly 2.5% so I estimate his base for 2015 will be $1,260,750, or $105K per month.
But of course there is way more.
He also got paid a "housing allowance" "travel allowance" (not official travel) "transport allowances" (I guess travel is difference from "transport", my guess is maybe they pay for a Lamborghini or something), and medical plus a pension as you can't save for retirement on only $105K per month.
These were an additional $243,296.
So call that about $1.5M so far, but there's more.
He also gets paid "fixed and discretionary short term incentives". That is lumped in with a $2,760,000 cash "milestone bonus" for signing the deal with Total that cut the share price in half the day he signed it.
So really it was only about $4.3M in cash.
Of course that excludes another $2.1M in restricted stock units. Of course these RSUs are priced on prevailing market prices so the lower the share price is, the more free shares he gets, all things being equal.
Last I checked he has spent a cumulative total of zero dollars buying shares of IOC.
And now they might merge with OSH in the toilet with him taking over a new kingdom with surely a much larger fresh package.
Will be the worst year possible to have a weak balance sheet.
I've seen zero evidence that Hession is aligned with shareholders. Seems now his personal play may be a merger with OSH with him running the new show. Would probably get reloaded with huge option grants with both OSH and IOC in the dung heap, and a massive salary increase (the $100K he gets per month now would seem light).
Total's game plan is obvious - they have zero interest in moving this thing to FID any time soon. Even Qatar is doing $5/mcf offtake deals now which barely cover liquefaction and transport. It's in their interest to delay as long as possible, get IOC on the mat, then stick the knife in.
Could be a situation where IOC's cash runs dry and they have to cut a deal where Total takes over the burn out of the future "resource" payment, with a commensurate pound of flesh.
I see a lot of risk here.
MS, note some of that cash is restricted. So $118M free cash. Back out the $70M convert and we're about $50M equiv as at Sep 30. But we are in November now, and if they are burnign say $50M a Q they are getting close to effectively zero, give or take.
They have the $300M line. BUT check the covenants. Equity can't fall below $500M. If you look at where they are and what they are burning it's likely they wouldn't be able to tap the whole thing.
They really need to get that Total money in the door or they are in a world of hurt in a few quarters.
We never left, zero. We've been monitoring the situation closely and our sleeper cell has been activated by desperate trapped naked shorts.
Big meeting in Tilson's basement Saturday night. Takes a lot of wolves to take down a moose.
My estimate is they were around $100M on Sep 30 (assuming no borrowing). With the convert due this month I think their cash is nearly gone, and will have to start borrowing soon. If I were a Total I would delay delay delay to get these guys on the mat.
Will know more tomorrow. 2016 is 6 weeks away and IOC in the 30s. Who would have guessed.
Hession pretty much played the hand he was dealt. If you want blame anyone one, blame Mulacek and Byker.