What's happening in CHC?
Thread Starter
What's happening in CHC?
Bill was from the old owners. New guy from the new owners. I doubt CD&R would pump $600m in without putting their own man in charge.
http://ir.chc.ca/Cache/27512870.pdf?...870&O=3&OSID=9
Not bad money but hardly $10k a day Helimutt. Bill was able to earn that if he hit his bonus targets but never did (or even got close).
http://ir.chc.ca/Cache/27512870.pdf?...870&O=3&OSID=9
Not bad money but hardly $10k a day Helimutt. Bill was able to earn that if he hit his bonus targets but never did (or even got close).
Last edited by nowherespecial; 9th Feb 2015 at 10:20. Reason: Added the new guys comp details.
SHJ,
First Reserve took the company private in 2008 then re-listed 26% of the shares on the NYSE last Jan. They retained 74% themselves though.
CD&R came along in the middle of last year and bought FR's 74%.
26% of the company remains publicly traded though. These numbers do fluctuate though so if you go to the SEC filings page I linked above, you'll see the ownership structure.
FR still own most of the the debt (off balance sheet) which they issued to buy CHC in the first place (like the Glazers at Man Utd if you're a football fan) but own no equity (shares) in the firm now.
It's typical Private Equity.
NWS
First Reserve took the company private in 2008 then re-listed 26% of the shares on the NYSE last Jan. They retained 74% themselves though.
CD&R came along in the middle of last year and bought FR's 74%.
26% of the company remains publicly traded though. These numbers do fluctuate though so if you go to the SEC filings page I linked above, you'll see the ownership structure.
FR still own most of the the debt (off balance sheet) which they issued to buy CHC in the first place (like the Glazers at Man Utd if you're a football fan) but own no equity (shares) in the firm now.
It's typical Private Equity.
NWS
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Just guessing:
- The new CEO comes from GE group and was in charge of one of the largest industrial merger between GE and Alsthom...so one could imagine he doesn't come to CHC just for the "fun of aviation"
- Milestone Group a major helicopter leasing company was acquired a few weeks ago by GECAS...part of GE
- CHC is leasing dozens of helicopters from Milestone Group
- but a few months ago CHC sold 31 of its aircraft to Waypoint Leasing a competitor of GECAS...not nice to GE...
And suddenly all this happens. If this all a coincidence, it's surprising. There must be a plan...
- The new CEO comes from GE group and was in charge of one of the largest industrial merger between GE and Alsthom...so one could imagine he doesn't come to CHC just for the "fun of aviation"
- Milestone Group a major helicopter leasing company was acquired a few weeks ago by GECAS...part of GE
- CHC is leasing dozens of helicopters from Milestone Group
- but a few months ago CHC sold 31 of its aircraft to Waypoint Leasing a competitor of GECAS...not nice to GE...
And suddenly all this happens. If this all a coincidence, it's surprising. There must be a plan...
Last edited by EC145Pilot; 9th Feb 2015 at 19:55.
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Bill was earning close to $7,000 per day. As President and Chief Executive Officer at CHC HELICOPTER S.A., William Amelio made $2,466,326 in total compensation. Of this total $764,298 was received as a salary, $1,654,857 was received as a bonus, $0 was received in stock options, $0 was awarded as stock and $47,171 came from other types of compensation. This information is according to proxy statements filed for the 2013 fiscal year. :
Employment Agreement William Amelio
William Amelio Executive Compensation
The company is currently discussing the terms of Mr Amelio's separation with him.
Karl Fessenden joins on a base salary of $750,000. His targeted annual bonus will be 100% of his annual base salary, with the actual amount subject to the satisfaction of performance goals and a maximum amount equal to 250% of annual base salary. For fiscal year 2015, Mr. Fessenden's bonus will be prorated for the period of his employment in fiscal year 2015, except that the bonus will not be less than a correspondingly prorated portion of 50% of his annual base salary. He also is receiving a $150,000 signing bonus. Following his commencement of employment, Mr. Fessenden will be granted options to purchase 2,000,000 of the Company's ordinary shares, which will have an exercise price equal to the closing price of an ordinary share of the Company on the New York Stock Exchange on the grant date.
CHC Change in Directors
Employment Agreement William Amelio
William Amelio Executive Compensation
The company is currently discussing the terms of Mr Amelio's separation with him.
Karl Fessenden joins on a base salary of $750,000. His targeted annual bonus will be 100% of his annual base salary, with the actual amount subject to the satisfaction of performance goals and a maximum amount equal to 250% of annual base salary. For fiscal year 2015, Mr. Fessenden's bonus will be prorated for the period of his employment in fiscal year 2015, except that the bonus will not be less than a correspondingly prorated portion of 50% of his annual base salary. He also is receiving a $150,000 signing bonus. Following his commencement of employment, Mr. Fessenden will be granted options to purchase 2,000,000 of the Company's ordinary shares, which will have an exercise price equal to the closing price of an ordinary share of the Company on the New York Stock Exchange on the grant date.
CHC Change in Directors
Thanks for the long hand of my link Keke.
The interesting thing is not really what he's going to be paid, nor Bill's salary. Bill was the CEO of a private company, of course he had no options hence the bigger cash bonus. With CHC's stock price in the toilet, Karl can't lose on his options. As the exercise price seems to be 9 Feb then he could be in business big time if he succeeds in cleaning house a bit.
Going back to the title of the thread, what do we think the outcome might be? BRS have shut down some business units in response to the slowdown.
CHC need to rationalise their legacy fleet, they carry far too many types and unused / idle heavies. They seem to have moved a whole load of people to Texas but kept Vancouver open. I wonder if the new boss will ever use the Vancouver office. I heard Bill didn't. PLenty of savings to be had if they just keep the leaders in the same office rather than all over the place flying to see each other....
Wonder if there is a conveyor belt of the good people job hunting already?
The interesting thing is not really what he's going to be paid, nor Bill's salary. Bill was the CEO of a private company, of course he had no options hence the bigger cash bonus. With CHC's stock price in the toilet, Karl can't lose on his options. As the exercise price seems to be 9 Feb then he could be in business big time if he succeeds in cleaning house a bit.
Going back to the title of the thread, what do we think the outcome might be? BRS have shut down some business units in response to the slowdown.
CHC need to rationalise their legacy fleet, they carry far too many types and unused / idle heavies. They seem to have moved a whole load of people to Texas but kept Vancouver open. I wonder if the new boss will ever use the Vancouver office. I heard Bill didn't. PLenty of savings to be had if they just keep the leaders in the same office rather than all over the place flying to see each other....
Wonder if there is a conveyor belt of the good people job hunting already?
EC145Pilot,
I think the plan is survival and selling off anything to keep the firm afloat. The 31 to Waypoint is a case in point. CHC now own very few of their ac, very few indeed. Selling them keeps the lights on until Karl gets it done and turns the business around.
That's what I think the plan is anyway.
I think the plan is survival and selling off anything to keep the firm afloat. The 31 to Waypoint is a case in point. CHC now own very few of their ac, very few indeed. Selling them keeps the lights on until Karl gets it done and turns the business around.
That's what I think the plan is anyway.
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Shame about the Global division suffering though. A little birdie told me that CHC's Nigerian division (of the double-vowelled name) recently recruited 12 cadets from 6,000+ who applied after 5 rounds of selection only to cut it in half and take only 6, leaving 6 distraught cadets high and dry.
After all the guff about Bristow losing market share too.
Bristow wins heads or tails apparently...
After all the guff about Bristow losing market share too.
Bristow wins heads or tails apparently...
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nowherespecial,
Other than Alaska, I don't think BRS has shut down any business units, they've just reorganised things into what they see as more sensible groupings. The International Business Unit has now been redistributed and Trinidad is now part of NABU, Turkmenistan comes under EBU and Tanzania comes under WASBU. It's going to be interesting to see how Duncan Moore fares in WASBU and what the future of Akin is. A lot of us here are concerned that Imlach is going to be the puppeteer to make Nigeria dance to his tune.
It's also interesting that last September Bristow hired hired Chet Akiri as senior vice president and chief officer Corporate Development, New Ventures and Strategy because he also comes from GE.
Other than Alaska, I don't think BRS has shut down any business units, they've just reorganised things into what they see as more sensible groupings. The International Business Unit has now been redistributed and Trinidad is now part of NABU, Turkmenistan comes under EBU and Tanzania comes under WASBU. It's going to be interesting to see how Duncan Moore fares in WASBU and what the future of Akin is. A lot of us here are concerned that Imlach is going to be the puppeteer to make Nigeria dance to his tune.
It's also interesting that last September Bristow hired hired Chet Akiri as senior vice president and chief officer Corporate Development, New Ventures and Strategy because he also comes from GE.
Last edited by Keke Napep; 11th Feb 2015 at 05:21.
Keke, that's my point. OIBU is closed and contracts redistribute to other regions. Strikes me as a 'batten down the hatches' move for the time being. Some office staff will have been re-assigned or let go.
The plethora of GE people at BRS (their board has a few of them) and now their man at CHC is a very interesting development.
Between CHC and BRS they have revenue of around $3.5bn but varying strengths in key geographies (CHC relatively strong in North Sea but no operation in GoM for example although there are many others). Would it survive a merger or would the US authorities cite it as anti competitive?
Personally I don't think a merger is out of the qn. If CHC's new man at the helm could persuade the BRS board (his old chums) to pay more than CD&R put in, at one swoop you have a titan in the industry and CHC solve the idle fleet issue while BRS get more fleet that they noted in their results they need. Win win potentially.
Once Babcock get their teeth into expanding Avincis (Bond et al), 2 huge players can go to war with the regional players.
Just my thoughts of course.
The plethora of GE people at BRS (their board has a few of them) and now their man at CHC is a very interesting development.
Between CHC and BRS they have revenue of around $3.5bn but varying strengths in key geographies (CHC relatively strong in North Sea but no operation in GoM for example although there are many others). Would it survive a merger or would the US authorities cite it as anti competitive?
Personally I don't think a merger is out of the qn. If CHC's new man at the helm could persuade the BRS board (his old chums) to pay more than CD&R put in, at one swoop you have a titan in the industry and CHC solve the idle fleet issue while BRS get more fleet that they noted in their results they need. Win win potentially.
Once Babcock get their teeth into expanding Avincis (Bond et al), 2 huge players can go to war with the regional players.
Just my thoughts of course.
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A merger like that would see the new entity not win any more contracts until equilibrium was restored. The oil industry ain't gonna let that much market get sown up by one player.
Don't forget that SE Asia has also been included in BRS AUSBU (not that BRS has much work in SE Asia).
Don't forget that SE Asia has also been included in BRS AUSBU (not that BRS has much work in SE Asia).
Possibly TM but some recent investment research on BRS (Evercore ISI) estimated the global offshore market at 1700 ac of which CHC have about 240 (25 idle) and BRS have 250 (of which about 40 are associated with the academy and not really offshore ac). This means a combined CHC BRS business would have around 430 ac, of which a sizable chunk are SAR or HEMS equivalent (ie not offshore)
I'm not dismissing your fears out of hand but if the investment research is broadly accurate, we're looking at less than 400 out of 1700 ac which is hardly a monopoly at less than 25% of the global market.
I'm not dismissing your fears out of hand but if the investment research is broadly accurate, we're looking at less than 400 out of 1700 ac which is hardly a monopoly at less than 25% of the global market.
