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ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Executive Changes (Sep 30, 2013)

Filed September 30, 2013For Securities:EPDEPDU

Summary

This 8-K filing from Enterprise Products Partners L.P. (EPD) reports on the outcome of a special meeting of unitholders held on September 30, 2013. The primary focus of the meeting was the approval of amendments and restatements to two key long-term compensation plans: the 2008 Enterprise Products Long-Term Incentive Plan (Third Amendment and Restatement) and the EPD Unit Purchase Plan (Third Amendment and Restatement). Both plans were overwhelmingly approved by the unitholders, with the Long-Term Incentive Plan receiving approximately 94.24% approval of votes cast, and the Unit Purchase Plan receiving approximately 98.39% approval of votes cast. These plans are designed to incentivize and retain key personnel, including directors, employees, and consultants of EPD and its affiliates, through awards such as options, restricted units, and the purchase of EPD common units via payroll deductions. The approval of these plans is crucial for EPD's ongoing talent management and alignment of employee interests with those of unitholders.

Key Highlights

  • 1Unitholders overwhelmingly approved the Third Amendment and Restatement of the 2008 Enterprise Products Long-Term Incentive Plan.
  • 2Unitholders also overwhelmingly approved the Third Amendment and Restatement of the EPD Unit Purchase Plan.
  • 3The Long-Term Incentive Plan allows for awards in various forms, including options, restricted units, and phantom units, for directors, employees, and consultants of EPD and its affiliates.
  • 4The Unit Purchase Plan enables eligible employees to purchase EPD common units through after-tax payroll deductions, allowing for an investment of 1% to 15% of eligible compensation.
  • 5The Long-Term Incentive Plan has a maximum aggregate of 10,000,000 common units available for issuance, with automatic annual increases of 2,500,000 units (capped at 35,000,000 units).
  • 6The Unit Purchase Plan has a maximum of 4,000,000 common units available for delivery.
  • 7Both plans have an effective term extending to the tenth anniversary of their unitholder approval date (September 30, 2023), unless all units are delivered or terminated earlier.

Frequently Asked Questions

The primary outcomes were the overwhelming approval of the amended and restated Long-Term Incentive Plan and the amended and restated Unit Purchase Plan. These plans are designed to provide long-term incentives and facilitate unit ownership among employees and management.

The Long-Term Incentive Plan aims to attract, retain, and motivate key personnel by offering awards tied to the company's performance and unit value. The Unit Purchase Plan allows eligible employees to invest in EPD common units through payroll deductions, aligning their interests with unitholders.

The Long-Term Incentive Plan has an initial maximum of 10 million units, with annual increases, capped at 35 million units over time. The Unit Purchase Plan has a maximum of 4 million units. While these represent a portion of outstanding units, the annual increases and total caps are important considerations for investors regarding future dilution.

The Long-Term Incentive Plan is available to directors, employees, and consultants of Enterprise Products Company (EPCO) and its affiliates providing services to EPD. The Unit Purchase Plan is primarily for regular, active, full-time employees of EPCO or designated affiliates, with certain exclusions such as those covered by collective bargaining agreements or employees already owning a significant stake (5% or more).