HAMILTON, Bermuda, Feb. 6, 2012 /PRNewswire/ -- Nabors Industries Ltd. (NYSE: NBR) today announced that it has entered an agreement with Eugene Isenberg, its Chairman and former CEO, pursuant to which Mr. Isenberg has voluntarily terminated his employment agreement, effective December 31, 2011. Mr. Isenberg will continue as Chairman of the Board through his current term, which ends in June of this year. At that time, he will retire as a director and become Chairman Emeritus.
Mr. Isenberg receives no cash compensation in connection with the termination and waives all claims he might have had against the Company in connection with his employment agreement, including any claim that the October 28, 2011 appointment of a new chief executive officer constituted constructive termination entitling him to a $100 million payment. He also forfeits the payment of approximately $7 million in his deferred bonus account. The Company is reviewing its previously announced plans to record a $100 million contingent liability in the fourth quarter.
In consideration of his agreement to the foregoing terms, upon his death, Mr. Isenberg's estate or trust will receive a payment of $6.6 million, together with interest. Additionally, Mr. Isenberg will retain certain benefits currently contemplated in the employment agreement, such as continued participation in the Company's insurance and fringe benefit programs, the cost of which is immaterial to the Company.
Mr. Isenberg commented, "I am fortunate to have been very successful in my career, and it has always been my intention to donate this money to charity. I ultimately concluded that everyone's interests, including the Company's and our shareholders', were best served by this new arrangement. It is my hope that the Company utilizes a substantial portion of these savings for worthy charitable purposes."