The rush for talent in the oil and gas business has led to outright stock
grants as recruitment lures for non-management employees.
Denver-based Delta Petroleum Corp. (www.deltapetro.com) recently issued five
new hires a total of 7,398 shares of Delta stock under its 2006 New Hire
Plan. At the recent stock price of $21, the five will share portions of
$155,358, or an average of $31,072 per employee. The stock plan awards the
shares at the date of hire and are structured as restricted stock. The
shares become tradable, or unrestricted, in thirds during each of the next
three years.
The grant program is a couple years old and replaces the former stock
options plan. Investor relations director Dave Donegan said he didn t
believe the New Hire Plan is unusual in the oil and gas industry, however,
experts say that while larger oil and gas companies are using the grants, it
is a fairly new practice and Delta s use of the technique shows creativity
for a smaller company.
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