8-KLeadership ChangesExhibits & Filings

DEVON ENERGY CORP/DE 8-K Report, Executive Changes (Jan 22, 2014)

Filed January 22, 2014For Securities:DVN

Summary

Devon Energy Corporation (DVN) filed an 8-K report on January 22, 2014, announcing a significant leadership change in its finance department. Effective February 17, 2014, Thomas L. Mitchell was appointed as the new Executive Vice President and Chief Financial Officer. Mr. Mitchell brings over 30 years of experience in the oil and gas industry, including previous CFO roles at Midstates Petroleum Company and Noble Corporation. This appointment signals a transition in financial leadership for the company. In conjunction with his appointment, Mr. Mitchell has been provided with a comprehensive compensation package, including a base salary of $550,000, a $3,000,000 restricted stock award vesting over four years, and a $360,000 signing bonus. His employment agreement also outlines participation in various incentive programs, benefits, and a substantial severance package in specific termination scenarios, including those following a change in control. The report also confirms the departure of the former CFO, Jeffrey A. Agosta, effective January 16, 2014, who is eligible for a significant severance package as per his employment agreement.

Key Highlights

  • 1Appointment of Thomas L. Mitchell as Executive Vice President and Chief Financial Officer, effective February 17, 2014.
  • 2Mr. Mitchell possesses over 30 years of experience in the oil and gas sector, including prior CFO roles.
  • 3Mr. Mitchell's compensation includes a $550,000 base salary, a $3,000,000 restricted stock award, and a $360,000 signing bonus.
  • 4Restricted stock granted to Mr. Mitchell will vest over four years.
  • 5Mr. Mitchell's employment agreement provides for participation in annual bonus programs, equity incentives, and executive benefits.
  • 6A robust severance package is outlined for Mr. Mitchell, including a multi-year salary and bonus payment under specific termination conditions, especially post-change in control.
  • 7Former CFO, Jeffrey A. Agosta, departed on January 16, 2014, and is entitled to a significant severance package including 300% of annual salary and bonus.

Frequently Asked Questions

Thomas L. Mitchell has been appointed as the new Executive Vice President and Chief Financial Officer of Devon Energy Corporation, effective February 17, 2014.

Mr. Mitchell's compensation package includes an annual base salary of $550,000, a $3,000,000 restricted stock award vesting over four years, and a $360,000 cash sign-on bonus. He will also be eligible for annual bonuses and other executive benefits.

Mr. Mitchell's employment agreement includes severance provisions that could provide up to three times his base salary and annual bonus, pro rata bonus, extended health and welfare benefits, and continued life insurance, particularly in cases of termination without cause or for good reason. Enhanced benefits apply if termination occurs within 24 months following a change in control.

The former Executive Vice President and Chief Financial Officer, Jeffrey A. Agosta, was terminated on January 16, 2014. He is eligible for a severance package as per his employment agreement, which includes 300% of his annual salary and bonus, as well as potential acceleration or continued vesting of long-term incentives.