APRIL 5, 2013 — Myles R. Itkin is out as Executive Vice President, Chief Financial Officer and Treasurer of battered tanker giant Overseas Shipholding Group, Inc., which has been in Chapter 11 bankruptcy since November 2012.

OSG said yesterday that Mr. Itkin's departure was part of a "reduction in force intended to improve operational efficiencies in connection with the company's restructuring efforts."

According to proxy statements filed for the 2012 fiscal year and accessible through salary.com, as OSG's EVP, CFO and Treasurer, Mr. Itkin made $1,088,049 in total compensation. Of this total $660,000 was received as a salary, $0 was received as a bonus, $115,008 was received in stock options, $230,054 was awarded as stock and $82,987 came from other types of compensation.

That's a tad less than the $6,310,837 in total compensation received in FY 2012 by OSG's former President and CEO Morten Arntzen who resigned on February 11, 2013.

Mr. Arntzen was replaced as President and CEO by Captain Robert Johnston, who had been the Senior Vice President and Head of U.S. Flag Strategic Business Unit. In that role, in FY 2012 he made $875,332 in total compensation. Of this total $575,000 was received as a salary, $0 was received as a bonus, $80,008 was received in stock options, $160,043 was awarded as stock and $60,281 came from other types of compensation.

According to a filing with the SEC last month, Captain Johnson will be getting a base salary of $675,000 annually as OSG's President and CEO should the bankruptcy court approve.

Mr. Itkin is being replaced by another former seafarer. Captain Ian T. Blackley will now serve as OSG's CFO and Treasurer. Captain Blackley had been OSG's Senior Vice President and Head of International Shipping Operations. In FY 2012, Captain Blackley made $997,372 in total compensation. Of this total $403,000 was received as a salary, $0 was received as a bonus, $81,675 was received in stock options, $163,332 was awarded as stock and $349,365 came from other types of compensation.

Captain Blackley began his seagoing career in 1971 with Peninsular and Oriental Steam Navigation Company (P&O), serving as Captain from 1987 to 1991. He holds a diploma in Nautical Science from Glasgow College of Nautical Studies and holds a Master Mariner Class 1 license.