Samir Ali
About Samir Ali
Samir Ali is Executive Vice President and Chief Commercial Officer at Seadrill Limited (SDRL) since August 16, 2022, responsible for commercial strategy across a premium floater fleet . During his tenure, Seadrill delivered FY2024 net income of $446 million and Adjusted EBITDA of $378 million, repurchased $527 million of shares, secured ~$1 billion of durable backlog in Brazil, and achieved 97.13% technical uptime . Seadrill’s 2024 performance metrics underpin Ali’s pay-for-performance incentives (EBITDA, levered free cash flow, safety TRIF, and technical utilization), with executive compensation supported by robust shareholder approval in 2025 say‑on‑pay .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Seadrill Limited | EVP, Chief Commercial Officer | Aug 16, 2022 – present | Commercial leadership across premium floater pure‑play; backlog recontracting and dayrate optimization consistent with corporate strategy |
External Roles
- No external directorships disclosed for Mr. Ali in the 2025 proxy or FY2024 10‑K exhibits .
Fixed Compensation
| Year | Base Salary (USD) | Target Bonus % | Actual Bonus Paid (USD) |
|---|---|---|---|
| 2022 | $159,375 | 75% | $368,775 |
| 2023 | $425,000 | 75% | $407,120 |
| 2024 | $425,000 | 75% | $408,714 |
| 2025 (new rate, effective Sept 15, 2025) | $440,000 | — | — |
Notes:
- 2024 STIP paid based on weighted performance across financial (EBITDA, LFCF), operational (TRIF, TU), and individual appraisal metrics .
- Perquisites are limited; disclosed items include tax assistance and 401(k) contributions ($20,700 for Mr. Ali in 2024) .
Performance Compensation
Long-Term Equity Awards (granted April 17, 2024)
| Component | Intended Grant-Date Value | Target Units | Vesting / Performance |
|---|---|---|---|
| PRSUs (TSR + Cumulative Free Cash Flow) | $1,300,000 | 17,607 | TSR and cumulative FCF over 2024–2026; payout 0–200% of target per matrices |
| TRSUs | — | 11,738 | Time-vest one-third on Apr 17 of 2025, 2026, 2027 |
2024 STIP Metrics and Outcomes
| Performance Measure | Weight | Threshold | Target | Maximum | Actual | % of Target Achieved | Weighted Score |
|---|---|---|---|---|---|---|---|
| Company Adjusted EBITDA (USD mm) | 25% | 310 | 387 | 464 | 378 | 93.97% | 23.49% |
| Levered Free Cash Flow (USD mm) | 15% | (118) | (91) | (64) | (74) | 161.65% | 24.25% |
| TRIF (safety) | 25% | 2.27 | 1.98 | 1.49 | 1.79 | 139.01% | 34.75% |
| Technical Utilization (TU) | 15% | 92.26% | 96.10% | 97.54% | 97.13% | 171.53% | 25.73% |
| Individual Performance | 20% | — | Target | — | Target | 100% | 20.00% |
Resulting 2024 STIP payout for Mr. Ali was $408,714 .
PRSU Payout Mechanics
- TSR PRSUs: payout matrix combining absolute and relative TSR vs peer group (Diamond Offshore, Noble, Transocean, Valaris, etc.), 0–200% payout with straight-line interpolation .
- Cumulative FCF PRSUs: each of 2024–2026 measured annually vs budget; 50%/100%/200% payout at 85%/100%/125% of budget, with straight-line interpolation; 2024 tranche earned at 113.67% of target .
Option Awards
- Seadrill does not grant stock options; no option awards or repricing history in 2024 .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (3/17/2025) | 11,913 common shares |
| Shares outstanding (record date) | 62,163,028 |
| Ownership % | ~0.019% (11,913 ÷ 62,163,028) |
| Unvested TRSUs (12/31/2024) | 4,453 Initial ExCo TRSUs (vesting 8/6/2025); 6,124 2023 ExCo TRSUs (vesting 9/25/2025); 11,738 2024 ExCo TRSUs (vesting 2025–2027) |
| PRSUs status (12/31/2024) | 23,374 Initial ExCo PRSUs (share price performance); 11,951 2023 CFCF PRSUs earned (2023 & 2024 tranches); 7,622 2023 CFCF PRSUs (2025 tranche at max inclusion); 8,574 2023 TSR PRSUs (threshold inclusion); 2,668 2024 CFCF PRSUs earned (2024); 9,392 2024 CFCF PRSUs remaining (2025–2026 max inclusion); 5,282 2024 TSR PRSUs (threshold inclusion) |
| Stock ownership guidelines | 2x annual base salary for named executives; 5x retainer for directors |
| Hedging/pledging | Company policy prohibits hedging, margin accounts, and pledging by directors and executive officers |
Vesting schedule and potential supply:
- 2024 TRSUs: 3,913 units vest on Apr 17, 2025; same amount in 2026 and 2027 (one-third each) .
- 2023 TRSUs: remaining half vests Sep 25, 2025 .
- 2022 TRSUs: final third vests Aug 6, 2025 .
Employment Terms
| Provision | Key Terms |
|---|---|
| Employment start in role | Aug 16, 2022 (EVP, Chief Commercial Officer) |
| Contract term | One-year terms with automatic one-year renewals unless 30 days’ non-extension notice |
| Severance (no CIC) | 18 months base salary continuation + COBRA reimbursement during severance period + pro‑rata annual bonus based on actual performance (personal objectives deemed met) |
| Severance (CIC, double-trigger) | Lump sum equal to 2x (base + target bonus + annualized employer COBRA portion) + pro‑rata annual bonus; CEO receives 3x |
| Equity on termination (no CIC) | Pro‑rata vesting/earnings of TRSUs and PRSUs for death, disability, termination without cause, or resignation for good reason (post‑Apr 2023 awards include good reason) per detailed pro‑rata formulas |
| Equity on CIC | If awards not assumed: single‑trigger vesting at greater of target or actual (post‑Apr 2023) . If assumed: convert to time‑based and vest on double‑trigger within 24 months |
| Non‑compete | 12 months post‑termination under employment agreements ; equity award agreements include 6‑month restrictive covenants |
| Clawback | Dodd‑Frank compliant recovery of erroneously awarded incentive compensation over 3 prior fiscal years upon accounting restatement |
| Insider trading policy | Prohibits hedging and pledging; blackout windows apply |
Performance & Track Record
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (USD mm) | 3,907 | 300 | 446 |
| Adjusted EBITDA (USD mm) | 265 | 495 | 378 |
| TSR value of $100 (company) | 123 | 178 | 147 |
Operational achievements in 2024 include ~7 years of backlog added at ~$458k/day average, repriced Brazilian contracts adding $1 billion of durable backlog, technical uptime of 97.13%, and continued CDP “B” score—consistent with commercial and operational priorities in Ali’s remit .
Compensation Structure Analysis
- Mix shift: Mr. Ali’s total compensation declined from $3.29 million (2023) to $2.46 million (2024), driven by lower stock award grant-date fair value ($2.43 million → $1.60 million) while salary and bonus remained stable (salary $425k; bonus ~$408k) .
- Strong pay-for-performance linkage: 60% of LTI via PRSUs tied to TSR and cumulative FCF; STIP requires EBITDA threshold and balances safety (TRIF) and technical utilization—reducing emphasis on purely financial metrics and incentivizing operational excellence .
- No options/repricing: No stock options granted or repriced in 2024, limiting windfall risk from volatility; equity awards have robust pro‑rata and CIC provisions .
- Shareholder support: 2025 say‑on‑pay approved (For: 37.47 million, Against: 2.41 million), frequency set to annual—indicating endorsement of compensation framework .
Compensation Peer Group (benchmarking)
- Diamond Offshore, Expro Group, Helix Energy Solutions, Helmerich & Payne, Nabors, Noble, Oceaneering, Oil States, RPC, Transocean, Valaris; NexTier removed post‑acquisition .
Say‑on‑Pay & Shareholder Feedback
- 2025 AGM results: Say‑on‑pay approved (37,474,953 For; 2,406,251 Against; 2,001,185 Abstentions); frequency vote favored annual (38,536,720 votes for 1 year) .
Investment Implications
- Alignment: Significant PRSU exposure to TSR and free cash flow aligns Ali’s incentives with shareholder returns and cash generation; STIP embeds safety and uptime metrics critical to contract performance and margin realization .
- Retention and change‑in‑control: 2x cash severance for executives (3x for CEO) with double‑trigger equity vesting if awards are assumed; 12‑month non‑compete mitigates post‑departure competitive risks .
- Selling pressure: Multiple tranches set to vest in 2025–2027 (Aug 6, Sep 25, Apr 17), including earned CFCF PRSUs—could introduce periodic Form 4 activity around windows; hedging/pledging is prohibited, reducing leverage‑driven supply risk .
- Execution risk: 2024 Adjusted EBITDA declined vs 2023 ($378mm vs $495mm), though net income improved; commercial execution on dayrates/backlog and safety/uptime remains central to payouts and value creation under Ali’s remit .