SandRidge shareholder calls for new directors

by Adam Wilmoth Published: December 27, 2012
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“The destruction of stockholder value has been caused by poor and erratic strategic decisions, reckless spending, and a culture of cronyism and waste that has drained value from the company,” the shareholder said in its regulatory filing Wednesday.

TPG-Axon also has criticized SandRidge management for its compensation to CEO Tom Ward, who in 2011 was paid more than $25 million, about 50 percent of the company's earnings that year. The shareholder also objects to the nearly $1 million paid annually for Ward's personal accounting and other benefits he receives from the company.

TPG-Axon on Monday also claimed that Ward and his son have engaged in “persistent front-running” of the company by personally buying leases and flipping some of those leases to SandRidge and other companies.

SandRidge declined to address the claims.

TPG-Axon controls 6.7 percent of SandRidge stock and needs support from a total of more than 51 percent of shares to enact the desired changes at the company.

Another institutional investor, equity firm Mount Kellett Capital Management LP, has urged SandRidge to replace Ward. It contends the company's stock is vastly undervalued.

SandRidge was unchanged in trading Wednesday, closing at $6.25.


by Adam Wilmoth
Energy Editor
Adam Wilmoth returned to The Oklahoman as energy editor in 2012 after working for four years in public relations. He previously spent seven years as a business reporter at The Oklahoman, including five years covering the state's energy sector....
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At a glance

Proposed new directors

SandRidge shareholder TPG-Axon has called for shareholders to oust SandRidge's directors and replace them with a panel of its choosing. Following are the proposed new directors:

Stephen C. Beasley, 61, founder and CEO of Houston-based investment firm Eaton Group Inc. and former president of El Paso Corp.'s Eastern Pipeline Group.

Edward W. Moneypenny, 70, retired senior vice president of finance and chief financial officer of 7-Eleven Inc. He is also former executive vice president of finance and chief financial officer of Covanta Energy Corp.

Fredric G. Reynolds, 62, retired executive vice president and chief financial officer of CBS Corp.

Peter H. Rothschild, 57, managing member of financial services company Daroth Capital LLC and president and chief executive officer of its banking subsidiary Daroth Capital Advisors LLC.

Dinakar Singh, 43, founder and CEO of TPG-Axon Capital and a former partner at Goldman Sachs and Co., where he was co-head of the principal strategies department

Alan J. Weber, 63, CEO of investment management firm Weber Group LLC and operating partner and chairman of the financial services advisory board at Arsenal Capital Partners LLC.

Dan A. Westbrook, 60, director at Canadian pipeline company Enbridge Energy Co.

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