SLB Town Hall - Questions you really want to ask! - post regarding Schlumberger Ltd. layoffs

I worked for SLB many many years, many years ago. I got laid off in 1999 when oil was $12.87/bbl and gas was 79c/gal, that was not that long ago.

So, oil sub $30 and staying in the 20s is VERY PLAUSIBLE, with dips into the teens.

We had the same complaints back then.

Since then, I have always stayed close to SLB and still have many friends in SLB, some in the Houston area, others overseas etc.

But, since then, when my life was turned upside down, I have learned a few things. Those things are what I'd like to share w you folks that are feeling a bit of anxiety right now.

First off, the CEO pay and dividends etc. First and foremost, the CEO's job is to do the best job for the company and its owners, NOT THE EMPLOYEES. That is his LEGAL responsibility. He will go to jail if he does anything to jeopardize the company. He is responsible to the company ownership and bondholders, NOT THE EMPLOYEES. His job is to watch the stock price (and company financials) like a hawk, and do whats necessary to "beat his peers" so that the owners don't sell. IF he does a good job at that and beats his peers, then the board of directors will give him a raise, Because the large mutual funds/pension funds/wall street banks didn't sell their millions and millions of dollars of stock and buy HAL or Baker or any other oilfield service competitor. If in fact, SLB outperforms it's peers in industry, then the CEO SHOULD get a raise because he is a "GOD" to the owners. Remember it's the OWNERS and BONDHOLDERS that matter, not the employees.

So, obviously employees are BY FAR the largest expense in a company. Head and shoulders above any other expense. #2 expense isn't even close to the employee expense. So, layoffs, while unpopular, give the biggest bang for the buck to the bottom line, which is what investors obviously look for. Investors only care about THEIR money, not YOUR money or paycheck.

When companies "lay off" stock prices go up, because the company becomes more profitable, by lowering it's expenses, and remember STOCK PRICE is the name of the game to the CEO.

In looking at the current stock price, SLB is doing quite well considering the current environment. The CEO is doing a good job.

Calling for layoffs is hard, as families are affected, and no one knows that better than me. It's a tough decision for top company leadership, no question. But again, their LEGAL and fiduciary responsibilities are to the stock and bond holders, not you.

So, senior leadership knows this, VP level. Division level or I guess SLB now calls it GEOMARKET level on down is all "scared" and running with a lot of anxiety, as wondering who will be next. That is bad for morale, no question. But, again, in times like these, from the company/CEO perspective, the high performers in critical positions will be the ones that "make the cut." Overhead, deadwood, excess, close to retirement, etc. those functions just aren't needed, and while the personalities are great, and those guys have "given their life to Blue" the simple fact is... money talks... and the world of money holds no prisoners.

So, while I "feel" your anxiety, SLB is getting to be a stock to buy from my perspective, as it is a very well managed company.

Thread regarding Schlumberger Ltd. layoffs

SLB Town Hall - Questions you really want to ask!

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