Using a filing with the Securities and Exchange Commission, Laredo Petroleum announced a reduction in its workforce and the departure of its chief financial officer and senior vice president. It also announced the hiring of a Chesapeake Energy executive.
The Tulsa-based firm said it had reduced its staff by 22 employees and blamed falling oil prices and the COVID-19 pandemic. The reduction occurred on June 17
“In light of the COVID-19 pandemic and lower oil prices, the Company’s Board of Directors (the “Board”) continues to monitor and evaluate the Company’s business and strategy and to reduce costs and better position the Company for the future. In connection with these changes, the Company estimates that it will incur an aggregate of approximately $4 million of one-time charges in the second quarter of 2020 comprising compensation, tax, professional, outplacement and insurance related expenses (the “Charges”),” stated the company in the SEC filing.
Laredo also used the SEC document to reveal the “immediate” departure of Michael T. Beyer who had been the firm’s Senior Vice President and Chief Financial Officer.
” Mr. Beyer’s departure was not the result of any dispute or disagreement with the Company relating to the Company’s accounting practices or financial statements,” stated the filing.
As a result, Beyer will receive a cash severance payment in the amount equal to 1.5 times his current base salary plus 1.0 times his target bonus. Laredo’s Board named former Chesapeake Energy executive Bryan J. Lemmerman as the new Senior Vice President and CFO. Lemmerman had been the Vice President of Business Development and Treasurer of Chesapeake Energy from June 2015 to June of this year. He led Chesapeake’s acquisition and development functions and under Laredo will receive a base salary of $440,000, a one-time new hire restricted stock award equal to $880,000 and a one-time cash signing bonus of $600,000.