There's a difference between a CEO that's paid well and one that's raking in loot he clearly doesn't deserve. The former may invoke a bit of ire in this economic climate, but when cooler heads prevail, the cash laid out is usually but a rounding error on the increases in market cap he's driven. An overpaid CEO, on the other hand ... well, it's a bit harder to justify the inflated package.

Kerri Chyka over at CNN Money reports that the Corporate Library sifted through the bloated and legit packages out there to let us know which top dogs are rolling in dough that should probably be left in the company coffers.

1. Michael Jeffries, Abercrombie & Fitch (NYSE: ANF)
Last year, Michael Jeffries made $71.8 million in total, with a base salary of $1.5 million, according to corporate governance research firm, the Corporate Library. It even included a $6 million retention bonus ... because you want to hang on to a guy who the research firm calls one of the five "Highest Paid Worst Performers" of 2008. If that stings, Jeffries can hop on the Abercrombie corporate jet instead of running away. He's paid better than 75% of rival CEOs, while the share price generally underperformed them.

2. James W. Stewart, BJ Services Company (NYSE: BJS)
James Stewart had a good year in 2008, as it outperformed most of its peers, and he nailed a $34.6 million package. In all fairness, $30 million came from the value realized on stock options. The four years that preceded Stewart's strong performance, on the other hand, were lackluster. The future, it seems, is immaterial, as Baker Hughes picked up BJ Services last month, and Stewart will probably be out the door at the end of the year, when the deal closes.

Continue reading Five overpaid CEOs to make you jealous

Five overpaid CEOs to make you jealous originally appeared on BloggingStocks on Tue, 29 Sep 2009 15:20:00 EST. Please see our terms for use of feeds.

"The US natural gas storage cycle is fairly straightforward: More gas is consumed in winter than in summer because natural gas is a key source of heat," explains Elliott Gue.

In his industry-leading The Energy Strategist, the energy sector specialist makes a bullish case for natural gas as well as contract driller Nabor's Industries (NYSE: NBR).

"The year started off with gas storage levels falling in line with the average. In late February or early March that all changed: Storage levels jumped and eventually broke to a new five-year high.

Continue reading Gas gains with Nabor's (NBR)

Gas gains with Nabor's (NBR) originally appeared on BloggingStocks on Tue, 18 Aug 2009 14:10:00 EST. Please see our terms for use of feeds.

Faced with a tanking stock price and angry shareholders, Nabors Industries (NYSE: NBR) has taken radical action to preserve shareholder value and mollify concerns about bad corporate governance: Longtime CEO Eugene Isenberg has agreed to accept a bonus of just $100 million in the event of his death.

Before, the death bonus had been pegged at an astounding $264 million. I've complained about this in the past.

While the reduction of ridiculous perks is a good start, it doesn't answer the fundamental problem: Why should a guy who "earned" a $70.8 million bonus in 2008 also receive $100 million in the event of his death, if it comes before March 30, 2013. Mr. Isenberg is 79 years old.

Continue reading Nabors CEO agrees to smaller bonus for dying

Nabors CEO agrees to smaller bonus for dying originally appeared on BloggingStocks on Fri, 01 May 2009 14:40:00 EST. Please see our terms for use of feeds.

Since August 2007, the Fed has cut its Fed funds rate from 5.25% to 0.25%. So shouldn't the cost of borrowing be down 5% as well? At first glance you might think that the cost of corporate borrowing would be down right along with the Fed funds rate. But rather than dropping 95%, the cost of borrowing for even the most credit worthy companies has nearly doubled. That matters because companies are likely to try to borrow $700 billion in 2009. And therein lies the reason that the Fed has no power to fix what ails us.

Here are two examples:

• Southwest Airlines (NYSE: LUV) , the only investment grade rated airline, raised $400 million in bonds in December 2008 to cover its losses from betting that fuel costs would stay high. Rather than paying the roughly 6% it had paid in 2004 to raise $350 million when the Fed funds rate ranged between 1.25% and 2.25%, Southwest had to put up 17 of its Boeing (NYSE: BA) jets as collateral and pay interest of 10.5% percent, nearly double the rate it had paid in 2004.
• Nabors Industries (NYSE: NBR), an oil services company, issued $1.1 billion in 10-year bonds in early January 2009, agreeing to a 9.25% -- in January 2008 when oil prices were rising, Nabors paid a mere 6.15% to borrow $975 million.

Why are companies paying more to borrow even though the Fed has slashed its short-term rate to near zero?

Continue reading With 0.25% Fed funds rate, why are companies paying 10% to borrow?

With 0.25% Fed funds rate, why are companies paying 10% to borrow? originally appeared on BloggingStocks on Mon, 19 Jan 2009 10:15:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Apple Inc. (NASDAQ: AAPL) earnings prospects may suffer if holiday sales are poor.
• Circuit City Stores Inc. (NASDAQ: CC) disappointing results were followed by a restructuring announcement.
• Conexant Systems Inc. (NASDAQ: CNXT) raised its guidance, send shares up sharply.
• Constellation Brands Inc. (NYSE: STZ) posted a Q2 loss due in part to restructuring Australian operations.
• Con-Way Inc. (NYSE: CNW) reduced Q3 guidance resulted in an analyst downgrade.
• Family Dollar Stores Inc. (NYSE: FDO) reported better-than-expected Q4 earnings, sending shares higher.
• Intel Corp. (NASDAQ: INTC) Q3 earnings prospects led to an analyst's upgrade.
• International Business Machines Corp. (NYSE: IBM) fell on rumors it would miss earnings estimates.
• Marriott International Inc. (NYSE: MAR) Q3 profits fell and it warned of challenges through 2009.
• Mosaic Co. (NYSE: MOS) fell short of expectations and warned of a production slowdown.
• Nabors Industrial Ltd. (NYSE: NBR) warning about earnings led shares near a new low.
• Pepsi Bottling Group Inc. (NYSE: PBG) beat Q3 expectations despite struggling with economic woes.
• Philips Electronics (NYSE: PHG) earnings prospects led to an analyst's downgrade.
• UBS (NYSE: UBS) said it expects to return to profitability after four straight quarterly losses.
• Walgreen Co. (NYSE: WAG) Q4 earnings fell short of expectations, though sales increased.

Also, Jim Cramer reminds us that earnings still matter. Changing accounting rules may affect the earnings of big banks.

Upcoming quarterly reports include Alcoa Inc. (NYSE: AA), Safeway Inc. (NYSE: SWY), Yum! Brands Inc. (NYSE: YUM), Costco Wholesale Corp. (NASDAQ: COST), Monsanto Co. (NASDAQ: MON), General Electric Co. (NYSE: GE).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Circuit City, Marriott, Walgreen, Pepsi Bottling, UBS and others originally appeared on BloggingStocks on Sat, 04 Oct 2008 09:10:00 EST. Please see our terms for use of feeds.

Continue reading Cramer on BloggingStocks: Nat gas dip was profit-taking, nothing more

Cramer on BloggingStocks: Nat gas dip was profit-taking, nothing more originally appeared on BloggingStocks on Mon, 28 Apr 2008 09:05:00 EST. Please see our terms for use of feeds.

Nabors Industries Ltd. (NYSE: NBR), an owner & operator of approximately 650 land drilling rigs, approximately 805 land workover/well-servicing rigs and 41 offshore platform rigs worldwide, closed at $27.92. WTI Crude oil up 0.64% to $91.75. NBR has a market cap of $7.9 billion. NBR option volume was heavy on November 13, with 39,294 call contracts trading compared to put volume of 5,408 contracts. NBR November 27.5 straddle is priced at $1.15. NBR December option implied volatility of 45 is above its 26-week average of 33 according to Track Data, suggesting larger fluctuations.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: Nabors volatility up on heavy call volume originally appeared on BloggingStocks on Wed, 14 Nov 2007 10:38:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Merriman initiated shares of Suntech Power (NYSE: STP) with a Buy rating and believes the company is benefiting from strong worldwide demand for solar PV technology. The firm suggests a potential 12-month stock price range of $56-$64.
  
• Merriman also started shares of First Solar (NASDAQ: FSLR) with a Sell rating, as they believe the company's market is limited to ground-based systems because of its cadmium-based technology, which they feel could lead to environment concerns over time.
  
• Deutsche Bank resumed coverage of Banco Santander (NYSE: STD) with a Buy rating. The firm is positive on the bank's agreement with ABN Amro (NYSE: ABN) and feels the company has a lack of exposure to risky assets.
  
• Jefferies believes Internap (NASDAQ: INAP) is well-positioned with its suite of services to address a rapidly growing market, starting shares off with a Buy rating and $20 target.
  
• Nollenberger believes NetGear (NASDAQ: NTGR) provides a pure-play opportunity to capitalize on the global penetration of broadband connectivity. The firm resumed coverage with a Buy rating and $36 target.

• ThinkEquity initiated Google (NASDAQ: GOOG) with a Buy rating and $800 target and Yahoo! (NASDAQ: YHOO) with an Accumulate rating.
  
• Banc of America initiated U.S. land drillers, including Grey Wolf (AMEX: GW), Nabors Industries (NYSE: NBR) and Patterson-UTI Energy (NASDAQ: PTEN) with Neutral ratings and Parker Drilling (NYSE: PKD) with a Buy rating.

Analyst initiations: STP, FSLR, STD, INAP and NTGR originally appeared on BloggingStocks on Tue, 23 Oct 2007 12:21:00 EST. Please see our terms for use of feeds.

Today's important stories from TheStreet.com: Jim Cramer's Portfolios of the Week,
Cramer's 'Mad Money' Recap: Spotting Tops and Bottoms.

Worry about something else other than the chance that the Federal Reserve won't cut its short-term interest rate target. Worry about how little oil is out there to find, how we are running out of cheap natural gas and how China is the linchpin in oil usage, not us.

Those are some of the trepidations that I feel after reading the incredibly good speech by Schlumberger (NYSE: SLB) chief Andrew Gould earlier this month, available on the company's fantastic Web site.

Gould's dealing with the realities of why the Oil Service HOLDRs (AMEX: OIH) won't quit. Easy oil is indeed running out, despite what the bulls tell us. The new additions to old fields give out earlier. The kind of oil and natural gas that is still left to find in North America is low-quality and not deeply reserved. The places where oil can be found are all deepwater or remote.

Continue reading Jim Cramer on BloggingStocks: Why oil's still the place to be

Jim Cramer on BloggingStocks: Why oil's still the place to be originally appeared on BloggingStocks on Mon, 17 Sep 2007 08:01:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Bernstein upgraded Patterson-UTI Energy Inc (NASDAQ: PTEN) and Nabors Industries Limited (NYSE: NBR) to Outperform from Market Perform citing valuations and secular growth trends.
• Citigroup upgraded US Steel Corporation (NYSE: X) to Buy from Hold and raised their target to $118 to reflect operating catalysts and their expectations for domestic steel markets to improve in Q4 and 2008.
• Cooper Companies Inc (NYSE: COO) was also upgraded to Buy from Hold at Citigroup despite the lowered guidance as they believe the company's products are improving and earnings upside is possible.
• WestLB upgraded Continental AG (OTC: CTTAY) to Buy from Hold after the tire marker announced plans to reorganize its company structure into six divisions following the purchase of Siemens AG's (NYSE: SI) VDO automotive unit.

• Tempur Pedic International (NYSE: TPX) was upped to Sector Outperformer from Sector Performer at CIBC World Markets.
• Friedman Billings upgraded shares of Stone Energy Corporation (NYSE: SGY) to Outperform from Market Perform.
• Deutsche Bank upgraded shares of Occidental Petroleum Corporation (NYSE: OXY) to Buy from Hold.
• Fifth Third Bancorp (NASDAQ: FITB) was raised to Market Perform from Underperform at Bernstein.

Analyst upgrades 9-7-07: PTEN, NBR, X, COO and CTTAY originally appeared on BloggingStocks on Fri, 07 Sep 2007 10:50:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Citigroup upgraded Verizon Commuications (NYSE: VZ) to Buy from Sell and raised their target to $48 from $33 as the firm believes earnings-per-share growth will override cap ex concern.

• Citigroup also upgraded shares of Priceline.com (NASDAQ: PCLN) to Buy from Hold on valuation as the firm believes the company's growth prospects are underestimated in the stock following the recent sell-off.

• Intel Corp (NASDAQ: INTC) was upgraded to Buy from Neutral at Merrill Lynch citing the company's robust product road map and its ability to compete against Advanced Micro Devices (AMD).

• JP Morgan upgraded NYXE Euronext (NYSE: NYX) to Neutral from Underweight and believes the risks that attributed NYX's downgrade in February have played out and sees limited downside at these levels.

• Cantor upgraded Top Tankers (NASDAQ: TOPT) to Hold from Sell following better-than-expected Q1 results...

• UBS upgraded shares of CACI International Inc (NYSE: CAI) to Buy from Neutral.

• Leerink Swann raised United Therapeutics Corp (NASDAQ: UTHR) to Outperform from Market Perform.

• Calyon upgraded Nabors Industries Ltd (NYSE: NBR) to Add from Neutral.

• Murphy Oil Corp (NYSE: MUR) was raised to Hold from Sell at Benchmark.

• Banc of America upgraded shares of Tanger Factory Outlet Centers Inc (NYSE: SKT) to Buy from Neutral.

• Baird upgraded Brady Corp (NYSE: BRC) to Outperform from Neutral.

Analyst upgrades 5-18-07: INTC, NYX, PCLN and VZ originally appeared on BloggingStocks on Fri, 18 May 2007 10:53:00 EST. Please see our terms for use of feeds.

Oil rig companies continue to print money originally appeared on BloggingStocks on Mon, 23 Apr 2007 13:37:00 EST. Please see our terms for use of feeds.

Note: The Daily Option Update is provided by Options Specialist Paul Foster of theflyonthewall.com.

Volatility Index S&P 500 Options-VIX down .22 to 10.09.

Cisco Systems Inc. (NASDAQ:CSCO) -- option volume heavy as February implied volatility bid up on hedges into EPS. Cisco, the largest vendor of data networking equipment and the leading global supplier of internet-working solutions is expected to report EPS on 2/6. Goldman Sachs says "we believe there is a high likelihood of Cisco beating our and the Street's estimates of $8.28 billion/$0.31. We expect management to reaffirm positive longer-term trends in emerging markets, new technologies, and the impact of video networks as key drivers of sustained double-digit top-line growth." Cisco call option volume of 73,135 contracts compares to put volume of 46,830 contracts. Cisco February option implied volatility of 42 is above its 26-week average of 28 according to Track Data, suggesting larger near term price risks.

Nabors Industries Ltd. (NYSE:NBR) -- option implied volatility and volume increases as NBR rallies. Nabors is an owner and operator of almost 600 land drilling, approximately 791 land workover/well-servicing rigs and 43 offshore platform rigs worldwide. Nabors will report EPS on 2/7. Nabors is recently up .80 to $31.02 on unconfirmed LBO chatter. Nabors call option volume of 26,680 contracts compares to put volume of 2,895 contracts. Nabors March option implied volatility is at 38. Nabors February option implied volatility of 53 is above a level of 43 from twenty-minutes ago and above its 26-week average of 33 according to Track Data, suggesting increasing price fluctuations.

Option volume leaders today were: Cisco (CSCO), Google Inc. (NASDAQ: GOOG), Equity Office Properties (NYSE:EOP), NYSE Group Inc. (NYSE: NYX) and Amazon.com Inc. (NASDAQ: AMZN).

Daily Option Update - February 2, 2007 originally appeared on BloggingStocks on Fri, 02 Feb 2007 17:58:00 EST. Please see our terms for use of feeds.