worth of over $26 million. In addition to leading Key through its critical
post-reorganization period, Mr. John strengthened Key's position through
strategic acquisitions, including the acquisitions of Odessa Exploration, the
WellTech West Texas assets and Clint Hurt, and by negotiating and structuring
financings for Key. The Merger with WellTech now in progress is an important
step in positioning Key as a leader in the well servicing business. Corporate
overhead has remained low and staffing patterns lean. In these and other
initiatives, Mr. John has enhanced Key's ability to compete effectively and has
positioned Key to participate in future growth in the industry and to enhance
The Compensation Committee believes that its current policies have been
and will continue to be successful in aligning the financial interests of
executive officers with those of Key's stockholders and Key's performance.
Nevertheless, the Compensation Committee intends to continue to review whether
and how to modify its policies to further link executive compensation with both
individual and Company performance.
Shareholder Return Performance Presentation. Set forth below is a chart
comparing the yearly change in Key's Common Stock against the S&P 500 Index and
the SCI Production/Well Service Group Index ("Peer Group") provided by Simmons
for the last three years.
1992 1993 1994 1995
---- ---- ---- ----
Key 100 200.0 171.1 231.1
S&P 500 100 110.1 111.5 153.4
Peer Group 100 133.9 104.3 133.0