8-KLeadership Changes

DEVON ENERGY CORP/DE 8-K Report, Executive Changes (Jan 13, 2025)

Filed January 13, 2025For Securities:DVN

Summary

Devon Energy Corporation (DVN) has announced significant changes to its senior leadership team through an 8-K filing on January 13, 2025. The company has appointed John D. Raines as Senior Vice President, E&P Asset Management, effective February 8, 2025, and Thomas J. Hellman as Senior Vice President, E&P Operations, effective January 20, 2025. These appointments will divide the company's principal operating officer functions between these two executives, both of whom will join Devon's Management Executive Committee. These moves signal an internal promotion for Mr. Raines, leveraging his extensive experience within the company, and an external hire for Mr. Hellman, bringing in operational expertise from Marathon Oil. In addition to these key appointments, Devon Energy also announced the elimination of the Executive Vice President and Chief Corporate Development Officer position, effective February 10, 2025, resulting in the departure of David G. Harris. Mr. Harris is eligible for a previously disclosed severance package. The appointments of Messrs. Raines and Hellman come with competitive compensation packages, including base salaries, target annual bonuses, and long-term equity incentives, alongside existing or new severance agreements, ensuring continuity and retention of executive talent as the company refines its operational and management structure.

Key Highlights

  • 1John D. Raines appointed Senior Vice President, E&P Asset Management (effective Feb 8, 2025).
  • 2Thomas J. Hellman appointed Senior Vice President, E&P Operations (effective Jan 20, 2025).
  • 3Principal operating officer functions will be divided between Raines and Hellman.
  • 4Both new appointees will serve on Devon's Management Executive Committee.
  • 5David G. Harris's position as EVP, Chief Corporate Development Officer eliminated (effective Feb 10, 2025), with Mr. Harris departing.
  • 6Raines and Hellman appointed with base salaries of $475,000, target annual bonuses of 75% of base, and target LTI grants of $1,500,000.
  • 7Severance arrangements are in place for both new appointees, with Mr. Harris eligible for a previously disclosed severance package.

Frequently Asked Questions

The primary purpose of these changes is to restructure and strengthen the company's senior leadership by appointing two new Senior Vice Presidents who will divide the principal operating officer functions. This aims to enhance operational oversight and asset management, while also streamlining the corporate development function with the elimination of a senior role.

Mr. Raines, as SVP of E&P Asset Management, will oversee business units, land, and regulatory teams. Mr. Hellman, as SVP of E&P Operations, will be responsible for drilling and completions, supply chain, EHS and measurement, and integrated subsurface teams. Both will contribute to the overall principal operating officer functions.

Both Mr. Raines and Mr. Hellman have been approved for a base salary of $475,000 annually, a target annual performance cash bonus of 75% of their base salary, and a target grant value for annual long-term equity incentives of $1,500,000. They also have severance agreements and are eligible for comparable employee benefits.

The filing states the position is being eliminated effective February 10, 2025, but does not provide specific reasoning for the elimination. David G. Harris, the current holder of this position, will depart the company on that date and is entitled to a severance package.