Ring Energy, Inc. (REI) Accused of Grossly Overcompensating its Directors
According to the derivative complaint, the last time Ring Energy reported its annual figures for the compensation of its executives and directors it revealed an astonishing average of $725,421 per director, significantly exceeding even the average total director compensation for a director of a Top 200 company. For years, Ring Energy’s board of directors have allegedly knowingly and grossly overcompensated its members at a rate of six times higher than the average of similarly-sized, publicly traded companies. In the past four years, Ring Energy’s cumulative losses have far surpassed its profits; however, its board continues to award itself excessive compensation. In 2017, Ring Energy’s total amount in compensation for its directors – $4,352,528 – was two and a half times the amount of Ring Energy’s net income. Ring Energy’s disclosures relating to its director and executive compensation have been reported in compensation tables that fail to accurately report total compensation, making them confusing and materially misleading to shareholders, therefore allowing Ring Energy’s board to continue its damaging practices unchecked.
