Summary
This 8-K filing from Enterprise Products Partners L.P. (EPD) on October 14, 2010, primarily details a retention agreement entered into by William Ordemann, an Executive Vice President of its general partner, Enterprise Products GP, LLC. The agreement, effective October 1, 2010, provides Mr. Ordemann with a retention payment of $2.5 million, contingent upon 48 months of continuous employment. This is a strategic move by the company to incentivize key executive retention during a critical period, ensuring continuity in leadership and operational expertise.
Key Highlights
- 1William Ordemann, an Executive Vice President, entered into a retention agreement.
- 2The agreement provides a $2.5 million retention payment to Mr. Ordemann.
- 3The payment is conditional on 48 months of continuous employment with Enterprise Products Company (EPCO) starting October 1, 2010.
- 4The full retention payment will be made if employment is terminated before the retention period ends due to death, disability, job elimination by EPCO, business reorganization of EPCO, or sale of EPCO or the Partnership.
- 5Specific voluntary terminations (resignation, termination for cause, retirement before term, or leaving for active duty without legal requirement) will result in forfeiture of unpaid retention amounts.
Frequently Asked Questions
The primary purpose of this 8-K filing is to disclose a retention agreement between Enterprise Products Partners L.P. (EPD) and one of its key executives, William Ordemann, to ensure his continued service with the company.
The retention payment is $2.5 million, less applicable taxes. It will be paid following the completion of 48 months of continuous employment with EPCO starting October 1, 2010. However, the full amount will be paid even if employment terminates before the 48 months due to death, disability, job elimination, business reorganization, or sale of the company or partnership.
The executive would not be eligible for any unpaid retention payment if he voluntarily terminates employment, is terminated for 'Cause' (as defined in the agreement), retires before the end of the 48-month period, or ceases employment to report to active duty unless the law requires payment.
This agreement signifies the company's commitment to retaining key executive talent, particularly Mr. Ordemann, who holds a significant position. It suggests the company values his contributions and wants to ensure leadership stability and continuity, which is generally positive for long-term investor confidence.