8-K: Schlumberger Executive VP Khaled Al Mogharbel to Step Down, Transitions to Advisor Role

Khaled Al Mogharbel, Executive Vice President, Geographies, of Schlumberger Limited, will step down on May 1, 2025, and transition to an advisory role to the CEO.

Summary

• Khaled Al Mogharbel, Executive Vice President, Geographies, of Schlumberger Limited (SLB), will step down from his position effective May 1, 2025, after 30 years with the company.
• He will transition to an advisor role to SLB's CEO through May 1, 2028, to ensure a smooth transition of the Geographies organization and operations.
• As part of the agreement, Mr. Al Mogharbel will receive an annual cash payment equal to 75% of his current base salary for three years.
• He will also continue to participate in SLB's health, welfare, and insurance plans, as well as accrue benefits under the pension and savings plans.
• Mr. Al Mogharbel will receive a prorated cash incentive award for 2025, paid at target, for the period worked until May 1, 2025.
• His outstanding long-term equity incentive awards will continue to vest according to their original terms.
• The agreement includes restrictive covenants such as a three-year non-competition and non-solicitation clause, confidentiality, and non-disparagement undertakings, as well as a waiver and release of claims.
• If Mr. Al Mogharbel breaches the agreement, SLB can stop payments, cancel outstanding equity awards, and require repayment of previously paid consideration.

Sentiment

Score: 7

Explanation: The announcement is neutral to slightly positive. It signals a planned transition with measures in place to ensure continuity. The retention of the executive as an advisor is a positive sign.

Positives

• Schlumberger ensures a smooth transition of its Geographies organization and operations by retaining Khaled Al Mogharbel as an advisor.
• Mr. Al Mogharbel's extensive experience will remain available to the company for the next three years.

Risks

• There is a risk that Mr. Al Mogharbel could breach the agreement, leading to financial and legal repercussions for both parties.
• The transition could potentially disrupt the Geographies organization if not managed effectively.

Future Outlook

Khaled Al Mogharbel will serve as an advisor to the CEO through May 1, 2028, to help foster an orderly transition of the Geographies organization and operations.

Management Comments

• Khaled Al Mogharbel's passion for advancing safety, technology and customer centricity has left a lasting mark on our organization.

Industry Context

Executive transitions are common in the oilfield services industry, often involving experienced leaders moving into advisory roles to leverage their expertise during periods of change or strategic realignment.

Comparison to Industry Standards

• Similar transitions occur at companies like Halliburton and Baker Hughes, where retiring executives often serve as consultants to ensure continuity.
• The compensation package, including a percentage of the base salary and continued benefits, is a standard practice in the industry for retaining valuable expertise.

Management Changes

Stakeholder Impact

• Shareholders may view the transition positively due to the continuity provided by the advisory role.
• Employees in the Geographies organization may experience some uncertainty during the transition period.
• Customers and suppliers should not be significantly impacted as the transition is managed to ensure continuity.

Next Steps

• File the full agreement as an exhibit to SLB's Quarterly Report on Form 10-Q for the quarter ending June 30, 2025.
• Ensure a smooth transition of responsibilities from Khaled Al Mogharbel to his successor.

Key Dates

Keywords

Schlumberger, executive, transition, advisor, Al Mogharbel, geographies, officer, appointment