SandRidge Energy Inc has forged a deal with hedge fund TPG-Axon Capital whose implication can lead to the exit of the company's chief executive officer. This is the second turn in two months that claims of self-dealing and poor performance has affected an energy firm in the United States.
The company has been reeling from criticisms from its investors, specifically TPG-Axon and another hedge fund, for its lapses in governance and missteps regarding business strategy. TPG-Axon has a 7.3% stake in the energy company is now deep in a campaign to remove the CEO and the entire board of directors of the company.
With the deal struck, SandRidge would nominate four directors to be added to the current board. The deal also includes the engagement of an independent firm to review deals entered into by the CEO and his family members. The new board would then have until June 30 to decide on whether to retain the CEO for the misdeeds committed.
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