8-KLeadership ChangesExhibits & Filings

ATMOS ENERGY CORP 8-K Report, Executive Changes (May 15, 2012)

Filed May 15, 2012For Securities:ATO

Summary

Atmos Energy Corporation (ATO) announced a key executive appointment via an 8-K filing on May 15, 2012. Bret J. Eckert was appointed as Senior Vice President, effective June 4, 2012. Mr. Eckert joins Atmos Energy from Ernst & Young LLP, where he was an audit partner. His appointment strengthens the company's senior management team, and he will report to the CFO. This filing also details Mr. Eckert's compensation package, which includes a base salary of $350,000, a $75,000 sign-on bonus, and significant equity awards. The equity awards consist of performance-based and time-lapse restricted stock units, vesting in 2014 and 2015 respectively, aligning his incentives with long-term company performance. Additionally, a change in control severance agreement is outlined, providing substantial benefits should his employment be terminated under specific circumstances within three years of a change in control.

Key Highlights

  • 1Bret J. Eckert appointed Senior Vice President, effective June 4, 2012.
  • 2Mr. Eckert joins from Ernst & Young LLP, bringing audit and financial expertise.
  • 3Annual base salary for Mr. Eckert set at $350,000.
  • 4A sign-on bonus of $75,000 was awarded to Mr. Eckert.
  • 5Mr. Eckert received a grant of 7,300 performance-based restricted stock units vesting September 30, 2014.
  • 6Mr. Eckert also received a grant of 7,300 time-lapse restricted stock units vesting June 4, 2015.
  • 7A change in control severance agreement provides significant benefits to Mr. Eckert in specific termination scenarios.

Frequently Asked Questions

Bret J. Eckert has been appointed as Senior Vice President of Atmos Energy, effective June 4, 2012. He previously served as an audit partner at Ernst & Young LLP and will be a member of the company's senior management team, reporting to the CFO.

Mr. Eckert will receive an annual salary of $350,000 and a $75,000 sign-on bonus. He will also receive two grants of 7,300 restricted stock units: one performance-based grant vesting in September 2014 and one time-lapse grant vesting in June 2015. He is also eligible for other incentive and benefit plans.

The agreement provides for severance benefits if Mr. Eckert's employment is terminated within three years following a change in control of Atmos Energy. These benefits include a lump sum severance payment of 2.5 times his total compensation, 18 months of COBRA coverage continuation, and additional contributions to retirement savings and other insurance benefits. Severance is not payable if terminated for cause, retirement, death, or disability, or if Mr. Eckert voluntarily resigns except for constructive termination.

The appointment of Bret J. Eckert as Senior Vice President was effective June 4, 2012.