8-KMaterial Agreements

DEVON ENERGY CORP/DE 8-K Report, Material Agreement (Jun 8, 2006)

Filed June 8, 2006For Securities:DVN

Summary

Devon Energy Corporation (DVN) filed a Form 8-K on June 8, 2006, reporting on actions taken by its stockholders and Board of Directors on June 7, 2006. The primary event disclosed is the stockholder approval of an amendment to the company's 2005 Long-Term Incentive Plan. This amendment, previously detailed in the company's proxy statement, is a key governance-related development. In conjunction with the approved plan, non-management members of the Board of Directors received equity awards. Specifically, each non-management director was granted 2,000 shares of restricted stock, which will vest over a four-year period starting in June 2007. Additionally, each non-management director received 3,000 stock options with an exercise price of $54.14, vesting immediately and expiring in June 2014. These grants are designed to align director interests with shareholder value.

Key Highlights

  • 1Stockholders approved an amendment to Devon Energy's 2005 Long-Term Incentive Plan on June 7, 2006.
  • 2The amendment's details were previously outlined in the company's April 28, 2006 proxy statement.
  • 3Non-management Board members received equity awards on June 7, 2006.
  • 4Each non-management director was granted 2,000 shares of restricted stock.
  • 5Restricted stock grants vest 25% annually, commencing June 7, 2007.
  • 6Each non-management director received 3,000 stock options.
  • 7Stock options have an exercise price of $54.14 per share, vest immediately, and expire on June 6, 2014.

Frequently Asked Questions

The main purpose of this 8-K filing was to report on the stockholder approval of an amendment to Devon Energy's 2005 Long-Term Incentive Plan and the subsequent equity awards granted to non-management Board members.

The restricted stock awards will begin vesting on June 7, 2007, with 25% vesting each year thereafter. The stock options, however, vested immediately on June 7, 2006.

The stock options were granted with an exercise price of $54.14 per share, which was the closing price of the Company's common stock on the New York Stock Exchange on the date of the grant.

No, this filing specifically details the entry into a material definitive agreement concerning the long-term incentive plan amendment and the associated director equity grants. No other material events are reported.