Wednesday's action expands the board from seven directors to 11, four of which were selected by TPG-Axon. If Ward stays with the company, the board would be reduced to nine, including five chosen by the dissident shareholder group.
“We believe these actions open a new chapter for SandRidge,” said Jeffrey Serota, the head of a Los Angeles-based investment firm who has been appointed SandRidge's lead independent director. “We look forward to the immediate contribution of our new directors.”
As part of the settlement, TPG-Axon has agreed to end its ongoing bid to oust the SandRidge board.
“We are pleased to reach agreement with the SandRidge directors, and look forward to working together to build shareholder value,” TPG-Axon CEO Dinakar Singh said. “We believe the actions taken by the board address our concerns, and are a promising start to a bright future for SandRidge.
“We all believe that SandRidge has tremendous asset value, and we expect that the company will relentlessly focus on growing and realizing that value through a particular focus on execution and efficiency.”
The new SandRidge board members are Stephen C. Beasley, Edward W. Moneypenny, Alan J. Weber and Dan A. Westbrook.
The board will conduct a comprehensive review of SandRidge's strategy and costs, with an eye toward reducing overhead and optimizing capital expenditures. That begins with an immediate pay cut for directors from $375,000 a year to $250,000.