8-KLeadership ChangesExhibits & Filings

CENTERPOINT ENERGY INC 8-K Report, Executive Changes (Jul 2, 2020)

Filed July 2, 2020For Securities:CNP

Summary

This 8-K filing announces significant leadership changes at CenterPoint Energy, Inc. (CNP) as of June 30, 2020. The most impactful news for investors is the appointment of David J. Lesar as the permanent President and Chief Executive Officer, effective July 1, 2020. Mr. Lesar, a seasoned executive with extensive experience at major corporations like Halliburton, brings a wealth of operational and financial expertise to the role. In conjunction with this appointment, John W. Somerhalder II has resigned from his interim CEO and director positions. The filing also details Mr. Lesar's compensation package, which includes a base salary, a significant equity award, relocation assistance, and eligibility for the company's incentive plans. Additionally, the Board has appointed Earl M. Cummings as a new director, further strengthening the Board's experience, particularly in real estate and technology sectors.

Key Highlights

  • 1David J. Lesar appointed permanent President and CEO, effective July 1, 2020.
  • 2John W. Somerhalder II resigns from interim CEO and director roles.
  • 3Mr. Lesar's compensation includes a $1,350,000 base salary and a $1,000,000 restricted stock unit sign-on award.
  • 4Mr. Lesar is eligible for Short-Term Incentive (STI) and Long-Term Incentive (LTI) plans with target award levels of 125% and 520% of base salary, respectively.
  • 5Company will purchase Mr. Lesar's Dallas residence for $1,217,000 and provide relocation assistance.
  • 6Earl M. Cummings appointed to the Board of Directors, effective July 1, 2020.
  • 7Mr. Cummings receives an initial stock award valued at $125,000.

Frequently Asked Questions

David J. Lesar has been appointed as the permanent President and Chief Executive Officer of CenterPoint Energy, Inc., effective July 1, 2020.

Mr. Lesar will receive an annual base salary of $1,350,000, a $1,000,000 restricted stock unit sign-on award vesting over three years, and relocation assistance, including the purchase of his Dallas residence for $1,217,000. He is also eligible for the company's Short-Term Incentive (STI) plan (target 125% of base salary) and Long-Term Incentive (LTI) plan (target 520% of base salary).

John W. Somerhalder II resigned from his interim CEO and director positions effective June 30, 2020, following the appointment of a permanent CEO. His resignation was not due to any disagreements with the Company.

Earl M. Cummings has been appointed to the Board of Directors, effective July 1, 2020. He brings experience from real estate investment and technology sectors and has received an initial stock award valued at $125,000.