Summary
This Form 8-K filing by Devon Energy Corporation (DVN) on June 7, 2007, details a material definitive agreement concerning compensation for its non-management Board of Directors. Specifically, it reports the issuance of restricted stock and stock options to these directors as part of their incentive compensation structure. The key information for investors revolves around the equity-based compensation awarded to the board. This includes grants of restricted stock that will vest over a four-year period and stock options that become exercisable immediately and expire in 2015. These grants are made under the company's 2005 Long-Term Incentive Plan and are designed to align the directors' interests with those of the shareholders.
Key Highlights
- 1Non-management Board of Directors received grants of 2,000 shares of restricted stock each.
- 2Restricted stock awards vest 25% annually, starting on June 6, 2008.
- 3Each non-management director was also granted 3,000 stock options.
- 4Stock options have an exercise price of $79.57 per share, matching the closing price on June 6, 2007.
- 5Stock options vest immediately on June 6, 2007, and expire on June 5, 2015.
- 6All grants were made under the Devon Energy Corporation 2005 Long-Term Incentive Plan.
Frequently Asked Questions
These grants are part of the company's incentive compensation program for its non-management Board of Directors. They are intended to align the directors' interests with those of the shareholders and reward long-term performance and commitment.
The restricted stock will vest over a four-year period, with 25% vesting each year starting on June 6, 2008. Directors can only sell the shares once they have vested.
The stock options have an exercise price of $79.57 per share, which was the closing price of Devon Energy's common stock on June 6, 2007. The options vest immediately, meaning they can be exercised as of June 6, 2007.
No, these grants were made under the existing Devon Energy Corporation 2005 Long-Term Incentive Plan.