Shareholder Sues Hercules Board Over Exec Pay

Law360, Los Angeles (June 13, 2011, 9:04 PM EDT) -- Hercules Offshore Inc. stockholder Sean Matthews filed suit Wednesday in Texas against its board of directors for alleged breach of fiduciary duty over its approval of big pay raises for top executives in 2010 despite a $145 million operating loss.

The derivative shareholder lawsuit against the global petroleum services company represents the latest salvo by shareholder advocates angry at outsized executive pay they argue was not tied to corporate performance.

Matthews filed suit in Texas state court alleging that board members of the global provider of...
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