8-KMaterial AgreementsExhibits & Filings

EQT Corp 8-K Report, Material Agreement (Mar 1, 2005)

Filed March 1, 2005For Securities:EQT

Summary

EQT Corporation (formerly Equitable Resources, Inc.) filed an 8-K on March 1, 2005, reporting the adoption of its 2005 Executive Performance Incentive Program (the "2005 Program") by its Compensation Committee on February 23, 2005. This program, effective January 1, 2005, is designed to incentivize and retain executive officers and key employees by aligning their interests with those of shareholders. It allows for the grant of up to 600,000 stock units, with a potential distribution of zero to 1,500,000 units in cash or stock based on performance metrics. The performance criteria for the 2005 Program are tied to EQT's total shareholder return relative to a defined peer group of 29 companies (with one exclusion) and its average absolute return on total capital over a four-year period ending December 31, 2008. Importantly, the program will be accounted for as a variable plan and recognized as an expense over the performance period, influenced by EQT's anticipated stock price and expected performance levels. This filing provides insight into management's compensation strategy and its link to long-term company performance.

Key Highlights

  • 1EQT Corporation adopted the 2005 Executive Performance Incentive Program (2005 Program) on February 23, 2005, effective January 1, 2005.
  • 2The 2005 Program aims to retain executive officers and key employees by aligning their interests with shareholders.
  • 3A maximum of 600,000 stock units can be granted to a maximum of forty participants.
  • 4The distribution of awards can range from zero to 1,500,000 units (250% of grants) and may be settled in cash or stock.
  • 5Vesting and distribution are contingent on performance over a four-year period (through December 31, 2008).
  • 6Performance metrics include total shareholder return relative to 29 peer companies and the Company's average absolute return on total capital.
  • 7The 2005 Program will be accounted for as a variable plan and expensed over the performance period based on anticipated stock price and expected performance.

Frequently Asked Questions

The primary purpose of the 2005 Program is to provide additional incentive benefits to retain executive officers and certain other key employees of EQT Corporation. It is designed to further align the interests of these individuals, who are responsible for the company's success, with the interests of the shareholders.

Participant performance will be measured based on a combination of EQT's total shareholder return relative to a peer group of 29 companies and the Company's average absolute return on total capital. This performance evaluation will occur over a four-year period, ending on December 31, 2008.

The 2005 Program will be accounted for as a variable plan. This means that the associated expenses will be recognized over the four-year performance period and will fluctuate based on EQT's anticipated stock price and the expected level of performance achieved against the program's metrics.

While a maximum of 600,000 stock units may be granted, the program allows for a potential distribution of zero to 1,500,000 units, which represents 250% of the units available for grant. This distribution can be made in either cash or stock.