8-KLeadership Changes

CENTERPOINT ENERGY INC 8-K Report, Executive Changes (Jul 2, 2013)

Filed July 2, 2013For Securities:CNP

Summary

This Form 8-K filing from CenterPoint Energy, Inc. (CNP) on July 2, 2013, primarily reports the departure of C. Gregory Harper, Senior Vice President and Group President, Pipelines and Field Services. Mr. Harper withdrew his name from consideration for the CEO role of a previously announced midstream partnership and left the company effective June 30, 2013. The filing details the terms of Mr. Harper's separation agreement, including a severance payment, vested benefits, payment for unused vacation, and outplacement services. Additionally, he is set to receive cash equivalents for pro-rated stock awards, contingent upon cooperation with transitional matters and adherence to non-disparagement and non-solicitation clauses. This information is relevant for investors to understand executive transitions and associated financial arrangements.

Key Highlights

  • 1C. Gregory Harper, Senior Vice President and Group President, Pipelines and Field Services, has departed CenterPoint Energy.
  • 2Mr. Harper withdrew his candidacy for the CEO position of a new midstream partnership.
  • 3The departure was effective June 30, 2013.
  • 4A separation agreement was executed on June 26, 2013.
  • 5Mr. Harper will receive a $900,000 lump sum severance payment.
  • 6Additional compensation includes vested benefits, unused vacation pay, outplacement services, and cash equivalents for pro-rated stock awards totaling $490,000, payable in 2014 and 2015.
  • 7The separation agreement includes cooperation, non-disparagement, and non-solicitation clauses.

Frequently Asked Questions

C. Gregory Harper left CenterPoint Energy after withdrawing his name from consideration for the Chief Executive Officer position of the company's previously announced midstream partnership with OGE Energy Corp. and two affiliates of ArcLight Capital Partners, LLC.

Mr. Harper is set to receive a $900,000 lump sum severance payment. He will also receive any vested benefits under company plans, payment for unused vacation hours, and nine months of outplacement services. Furthermore, he is entitled to $490,000 in cash equivalents for pro-rated stock awards, payable on March 15, 2014, and March 15, 2015, subject to certain conditions.

Yes, the payment of the cash equivalent for his stock awards is contingent upon his cooperation in certain transitional matters and his compliance with non-disparagement and non-solicitation requirements. The separation agreement also includes a waiver and release.