The Chief Financial Officer David Dyck discovered $300-million in expenses were misclassified after he attempted a re-examination of the company’s accounting practices. CEO Dave Robert gained an “individual account” of 185%. When working out the full compensation, his total compensation roughly totalled $3.5 million for the year.
After news of accounting irregularities, Penn West Petroleum Ltd. shares falling 17.4% before pulling back. Penn West shares closed at $8.57, down 13.78%, still some way from its 52-weekly low of $7.82.
Second quarter production stood at 108,103 barrels of oil equivalent per day, ahead of consensus of 101,400 build. The company has sold $700-million out of a stated goal of $2-billion in asset sales by 2015. The company also reduced headcount, …show more content…
The accounting scandal happened, the company’s reputation will be affected and this will opposite the interest of shareholders.
Employees of the company wish to retain their jobs too will be recognized as “Stakeholders”. The employees undoubtedly recognize Penn West's interests which going concern is being essential to their longevity which ultimately poses a very difficult dilemma for employees. During the accounting irregularities happened in Penn West, the decision to cut down the expenses by reducing the headcount in order to recover their loss. This will affect the employees of Penn West.
Besides, investors also the stakeholders involved in this situation. The company is having fiduciary relationship with the investor. After markets closed on 29th July 2014, as Calgary was easing into a late summer, Penn West had discovered significant accounting irregularities. Investors will then tired of years of broken promises and worried the scandal could be far reaching, will hammered the stock price and the reputation of Penn
After news of accounting irregularities, Penn West Petroleum Ltd. shares falling 17.4% before pulling back. Penn West shares closed at $8.57, down 13.78%, still some way from its 52-weekly low of $7.82.
Second quarter production stood at 108,103 barrels of oil equivalent per day, ahead of consensus of 101,400 build. The company has sold $700-million out of a stated goal of $2-billion in asset sales by 2015. The company also reduced headcount, …show more content…
The accounting scandal happened, the company’s reputation will be affected and this will opposite the interest of shareholders.
Employees of the company wish to retain their jobs too will be recognized as “Stakeholders”. The employees undoubtedly recognize Penn West's interests which going concern is being essential to their longevity which ultimately poses a very difficult dilemma for employees. During the accounting irregularities happened in Penn West, the decision to cut down the expenses by reducing the headcount in order to recover their loss. This will affect the employees of Penn West.
Besides, investors also the stakeholders involved in this situation. The company is having fiduciary relationship with the investor. After markets closed on 29th July 2014, as Calgary was easing into a late summer, Penn West had discovered significant accounting irregularities. Investors will then tired of years of broken promises and worried the scandal could be far reaching, will hammered the stock price and the reputation of Penn