Multinational corporation Halliburton (HAL) is owned by its shareholders. What does that mean for the company and its shareholders?
On June 10, Halliburton shares dropped 1.44 percent to $23.91. However, the stock was back up to over $24 on June 11.
According to CNN Business, institutional investors have majority ownership of Halliburton through 78.73 percent of shares in the company. The largest shareholder is The Vanguard Group, Inc., which has a 10.78 percent stake in the company with over 95.8 million shares.
Halliburton's other top owners include Capital Research & Management Company (6.82 percent), SSgA Funds Management (6.16 percent), Inc., BlackRock Fund Advisors (5.33 percent), and Pzena Investment Management LLC (4.02 percent).
Halliburton is led by Jeff Miller—the president, CEO, and chairman.
Shareholders voted against the 2021 executive compensation plan.
In May, Halliburton shareholders voted against a proposed compensation plan for company executives in an advisory motion.
The compensation plan was revised in 2019 and passed in 2020 by 91 percent of shareholders. However, at the meeting on May 19, 2021, shareholders voted 344.68 million shares against the approval of the plan, according to a filing with the SEC.
“The Halliburton Board of Directors is disappointed by the shareholder advisory vote on the Company’s executive compensation program. In an industry challenged by COVID and oil supply and demand imbalance, Halliburton led its peers in total shareholder return performance, and has structured pay to attract, motivate, and retain employees,” said Miller in a company press release.
Miller made $10 million more in 2020 than 2019 despite pledging to cut executive salaries, Reuters reported. His compensation was 293 times the median compensation of Halliburton employees.
What does Halliburton do?
Halliburton is one of the world's largest oil field equipment and service companies. The company has over 40,000 employees in more than 70 countries. It also has about 30 subsidiaries around the world with dual headquarters located in Houston and Dubai.
Founded in 1919 by oil industry businessman Erle Halliburton, the company was initially called New Method Oil Well Cementing Company.
According to Wikipedia, Erle Halliburton invented the revolutionary cement jet mixer to eliminate hand-mixing, and the measuring line, a tool used to guarantee cementing accuracy. In 1921, he received a patent for the "method and means of excluding water from oil wells."
In 1924, Halliburton incorporated his company and sold part ownership to some large petroleum businesses to help expand expansion. The company went public in 1948.
The company was renamed the Halliburton Oil Well Cementing Company (HOWCO) and eventually became Halliburton Company in 1961.
Halliburton has been at the center of several controversies over the years. During the Iraq War, the company was the only bidder allowed for a $7 billion government contract, which it subsequently got. At the time, former U.S. Vice President Dick Cheney was involved with the company. Cheney served as Halliburton chairman and CEO from 1995 to 2000.
Halliburton’s net worth
According to Statista, Halliburton has total assets worth around $20.68 billion. Due to one of the most challenging years in the oil industry, the value of total assets declined by about $5 billion between 2019 and 2020.