8-KLeadership Changes

Baker Hughes Co 8-K Report, Executive Changes (Jan 27, 2022)

Filed January 27, 2022For Securities:BKR

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.

Frequently Asked Questions

The company revised its Long-Term Incentive Plan (LTIP) and Executive Officer Short-Term Incentive Plan. Key changes include modifications to how payments are handled upon reaching retirement eligibility, adjustments for specific transaction types, and updates to comply with Section 162(m) of the Internal Revenue Code and align with the executive change in control severance plan.

CEO Lorenzo Simonelli received the largest total long-term incentive awards, with grants valued at $11,000,000, comprised of $6,600,000 in Performance Share Units and $4,400,000 in Restricted Stock Units.

Yes, Maria Claudia Borras, Executive Vice President of Oilfield Services, received an increase in her base salary to $950,000, effective February 7, 2022.

The additional restricted stock unit award granted to Maria Claudia Borras with a value of $3,000,000 will cliff vest on the third anniversary of the grant date.