An investor in Helix Energy Solutions Group (NYSE: HLX) filed a lawsuit against directors of Helix Energy Solutions Group over alleged breaches of fiduciary duties in connection with Helix Energy Solutions Group’s executive compensation practices.
According to the complaint the plaintiff alleges that directors of Helix Energy Solutions Group breached their fiduciary duties owed to investors of Helix Energy Solutions Group by agreeing to pay certain executives of Helix Energy Solutions Group significant raises despite a $127.1million Net Loss last year and a 66% opposition for its pay practices at its May 11 annual meeting.

The plaintiff alleges that the Helix Energy Solutions Group Board’s decision to increase the CEO and top executive pay in 2010, despite Helix Energy Solutions Group’s dismal 2010 financial performance, was not in the best interests of shareholders of Helix Energy Solutions Group.

In fact, despite a decline from its Net Income of $315.70million in 2007 to a Net Loss of $635.93million in 2008 and a Net Loss of $126.99million in 2010, Helix Energy Solutions Group’s 12months Total Revenue also declined from $1.732billion in 07, respectively $2.114billion in 2008 to $1.199billion in 2010. I

And even though shares of Helix Energy Solutions Group Inc. (Public, NYSE:HLX) rose from as low as $3.11 during February 2009 to as high as $18.93 per share in April 2011, NYSE HLX stock before the low in February 2009 fell from as high as over $40 in 2008, respectively almost $46 per share in 2007 and therefore are currently trading at less than 50% of its value from mid 2008.

Nevertheless, executive compensation for Helix Energy Solutions Group’s CEO and top executives included massive stock option award grants ranging from 70.1% to 150.6% greater than the previous year’s stock awards, so the plaintiff. In fact Helix Energy Solutions Group’s CEO earned roughly $4million in 2010, its CFO $2.14million, its EVP and General Counsel $1.66million, its COO $2.55million, and its former EVP Oil & Gas $3.16million.