Don J. Colton, currently president, treasurer, and chairman of the board of directors of Pioneer Oil and Gas (Pink Sheets: POGS) is retiring from the company. He will remain on the board of directors. Gregg B. Colton will replace him as chairman of the board, president, and treasurer. A. Franklin Adams will replace Gregg B. Colton as secretary of the company.
The Pioneer Employee Stock Ownership Plan (ESOP) will purchase Don Colton's 993,579 shares in the ESOP plan for $1.00 per share. This is the same price as the company's 2012 tender offer and the same price paid by the Plan for recent larger purchases of shares (over 200,000 shares). Purchases by the ESOP are funded from loans by the company. Since Colton's retirement is voluntary, no severance payments will be made.
Salaries of all remaining company personnel will be cut by 40%. The net effect of Colton's retirement and the salary reductions will have a net positive effect on cash flow over a two-year period.