Summary
Baker Hughes Company (BKR) announced on January 27, 2022, that its Human Capital and Compensation Committee approved revisions to its Long-Term Incentive Plan (LTIP) and Executive Officer Short-Term Incentive Plan. These changes primarily involve modifications to provisions concerning retirement eligibility payments and adjustments related to certain transaction types, along with updates to comply with Section 162(m) of the Internal Revenue Code and align with the Company's Executive Change in Control Severance Plan. More notably, the filing details significant long-term incentive awards granted to named executive officers, including substantial performance share units and restricted stock units totaling over $20 million for CEO Lorenzo Simonelli. Additionally, Executive Vice President Maria Claudia Borras received a base salary increase to $950,000 and a separate restricted stock unit award valued at $3 million, vesting over three years. These executive compensation adjustments signal a focus on retaining and incentivizing key leadership within the company.
Key Highlights
- 1Revisions made to Baker Hughes' 2021 Long-Term Incentive Plan (LTIP) and Executive Officer Short-Term Incentive Plan.
- 2Changes impact provisions for retirement eligibility payments and align with change in control severance plans.
- 3Significant long-term incentive awards granted to named executive officers.
- 4CEO Lorenzo Simonelli received total long-term incentive grants valued at $11,000,000 ($6.6M Performance Share Units, $4.4M Restricted Stock Units).
- 5Other named executive officers (Brian Worrell, Maria Claudia Borras, Rod Christie) also received substantial long-term incentive awards.
- 6Maria Claudia Borras received a base salary increase to $950,000, effective February 7, 2022.
- 7Maria Claudia Borras was granted an additional $3,000,000 restricted stock unit award, vesting on the third anniversary of the grant date.