Transocean Ltd. Board Recommends Dividend of $0.60 Per Share
Transocean Ltd. (NYSE: RIG) (SIX: RIGN) announced that the Board of Directors (“the Board”) has recommended certain proposals for shareholder approval at the 2015 Annual General Meeting of Shareholders (“AGM”). The AGM, which will be open to shareholders of record as of April 28, 2015, will be held at 5 p.m., CET, on May 15, 2015, in Cham, Switzerland. Additional details on the AGM will be provided in the company’s proxy statement.
Transocean’s Board recommends that the company’s shareholders approve a U.S. dollar-denominated dividend of $0.60 per share, or approximately $217 million in the aggregate (based upon the number of currently outstanding shares), out of additional paid-in capital. The Board expects that the proposed dividend will be payable in four quarterly installments set for June 2015, September 2015, December 2015, and March 2016.
In the interest of all of its stakeholders, and in the context of a cyclical and capital-intensive industry, the Board remains focused on driving long-term value through the execution of the company’s disciplined and balanced capital allocation strategy. This strategy includes maintaining a strong, flexible balance sheet and an investment grade rating on the company’s debt; value-creating reinvestment in the business; and a competitive and sustainable distribution of cash to shareholders. The Board believes that the level of the proposed dividend supports these objectives.
In addition, the Board recommends that the company’s shareholders approve, among other items:
The re-election of: Glyn A. Barker, Vanessa C.L. Chang, Frederico F. Curado, Chad Deaton, Vincent J. Intrieri, Martin B. McNamara, Samuel J. Merksamer, Merrill A. “Pete” Miller, Jr., Edward R. Muller, and Tan Ek Kia as members of the Board, each for a term extending until completion of the 2016 AGM; Ian C. Strachan, the current Chairman of the Board, will reach 72 years of age before the AGM and, in accordance with the company’s Corporate Governance Guidelines, will retire as a Director at the end of his term at the AGM;
The election of Merrill A. “Pete” Miller, Jr. as Chairman of the Board for a term extending until completion of the 2016 AGM;
The election of Frederico F. Curado, Vincent J. Intrieri, Martin B. McNamara, and Tan Ek Kia as members of the Board’s compensation committee, each for a term extending until completion of the 2016 AGM;
The compensation of the company’s Named Executive Officers for fiscal year 2014 pursuant to U.S. securities laws;
The maximum aggregate amount of compensation of (i) the Board for the period between the 2015 AGM and the 2016 AGM and (ii) the company’s executive management team for fiscal year 2016 pursuant to Swiss law and the company’s articles of association; and
The discharge of the members of the Board and executive management team from liability for activities during fiscal year 2014.
Source: Transocean Ltd