Summary
This 8-K filing by Enterprise Products Partners L.P. (EPD) announces the execution of retention bonus agreements with four key senior executives: A. James Teague (CEO), W. Randall Fowler (President and CFO), Graham W. Bacon (Executive Vice President), and Brent B. Secrest (Senior Vice President). These agreements are designed to incentivize continued high-level performance and commitment through specific retention periods, ending in May 2022 for Mr. Teague and May 2023 for the other three executives. The retention payments are substantial, with $5 million for Messrs. Teague and Fowler, and $1 million for Messrs. Bacon and Secrest. These payments are contingent upon the executives completing their respective retention periods while performing their duties in a highly effective manner, as determined by EPCO executives. The agreements also outline provisions for pro-rata payments in the event of a qualifying termination, such as death, disability, or termination by EPCO without cause, provided performance targets were met up to the termination date. While these agreements are with EPCO, a privately held affiliate, the associated compensation costs may be allocated to the Partnership under an existing administrative services agreement.
Key Highlights
- 1Four senior executives, including CEO and CFO, have entered into retention bonus agreements.
- 2Retention bonuses range from $1 million to $5 million, contingent on continued employment and performance.
- 3Retention periods extend to May 31, 2022 (CEO) and May 31, 2023 (others).
- 4Agreements include provisions for pro-rata payments upon qualifying terminations (death, disability, termination without cause).
- 5Performance requirement for payouts is 'highly effective manner' as determined by EPCO executives.
- 6Compensation costs may be allocated to EPD via an existing administrative services agreement with EPCO.