Summary
Baker Hughes Company (BKR) announced on December 17, 2020, the Compensation Committee's approval of "Transformation Incentive Awards" for its Chief Executive Officer, Chief Financial Officer, and other named executive officers. These awards, effective from January 1, 2021, to December 31, 2023, are designed to align, focus, and retain senior leadership critical to executing the company's "transformative commitments" during a pivotal three-year period. The awards consist entirely of at-risk performance units, with payouts contingent on achieving key financial and strategic metrics aimed at positioning Baker Hughes within the evolving energy transition landscape.
Key Highlights
- 1Baker Hughes' executive leadership (CEO, CFO, and other named officers) received new "Transformation Incentive Awards" effective January 1, 2021.
- 2These awards are 100% at-risk performance units, meaning payout is entirely dependent on achieving specific goals.
- 3The performance period for these awards is three years, from January 1, 2021, to December 31, 2023.
- 4Payouts are tied to achieving key financial and strategic metrics focused on the energy transition and adapting to the changing energy landscape.
- 5Potential payouts can range from 0% to 200% of the target award value, based on company performance relative to peers and strategic objectives.
- 6Awards will be paid in cash in early 2024, after the performance period concludes.
- 7Specific target award values were disclosed for key executives: Lorenzo Simonelli ($3,000,000), Brian Worrell ($1,500,000), Maria Claudia Borras ($1,500,000), and Roderick Christie ($1,500,000).