8-KOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Corporate Update (Jan 4, 2010)

Filed January 4, 2010For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on January 4, 2010, reporting two key governance updates. Firstly, effective January 1, 2010, the Board of Directors of its general partner, Enterprise Products GP, LLC, approved an increased compensation package for non-management directors. This includes an annual cash retainer, meeting fees, and a new annual grant of common units valued at $75,000, aligning director incentives with unitholder interests. Secondly, also effective January 1, 2010, and announced via press release on January 4, 2010, the company adopted new equity ownership guidelines for its directors and executive officers. These guidelines mandate significant ownership of Partnership Units, requiring non-management directors to hold units valued at three times their annual cash retainer, and executive officers to hold units valued at three times their annual base salary. These measures aim to further align management and director interests with those of the Partnership and its unitholders, with a deadline of January 1, 2015, for achieving compliance.

Key Highlights

  • 1Increased compensation for non-management directors, including a $75,000 annual grant of common units.
  • 2New equity ownership guidelines adopted for directors and executive officers.
  • 3Non-management directors are required to own Partnership Units valued at 3x their annual cash retainer.
  • 4Executive officers must own Partnership Units valued at 3x their annual base salary.
  • 5Equity ownership deadlines set for January 1, 2015.
  • 6Measures are designed to align interests of directors and officers with unitholders.
  • 7The general partner's Board of Directors approved these changes.

Frequently Asked Questions

The primary purpose of the new equity ownership guidelines is to further align the interests and actions of the Company's directors and executive officers with the interests of the Partnership and its unitholders. By requiring them to hold a significant amount of Partnership Units, it encourages decisions that benefit the long-term value of the partnership.

Non-management directors will receive an annual cash retainer of $75,000, a $1,500 meeting fee for each Board and Committee meeting attended, and an annual grant of common units valued at $75,000. Committee Chairmen will receive an additional $15,000 annual cash retainer.

The deadline for directors and executive officers to achieve the required equity ownership level is the later of January 1, 2015, or the fifth anniversary of their appointment as a director or executive officer.

Yes, for executive officers who are also executive officers of affiliated MLPs (Duncan Energy Partners L.P. or Enterprise GP Holdings L.P.), their ownership in those specific affiliated MLPs will count towards the equity ownership requirements for Enterprise Products Partners L.P.