“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.