8-KLeadership Changes

EQT Corp 8-K Report, Executive Changes (Aug 29, 2019)

Filed August 29, 2019For Securities:EQT

Summary

EQT Corporation (EQT) announced on August 29, 2019, the termination of Senior Vice President and Chief Financial Officer, Jimmi Sue Smith, effective the same date. The termination was without cause, and Ms. Smith is eligible for certain severance payments, equity acceleration, and benefits as outlined in her existing Restrictive Covenant Agreement, contingent upon her continued compliance with its terms and execution of a release of claims. This leadership change signifies a shift in financial oversight for the company. In response to Ms. Smith's departure, EQT has appointed Kyle Derham as Interim Chief Financial Officer. Mr. Derham brings recent experience as a consultant to EQT and a background with Rice Investment Group, as well as prior roles at Rice Energy Inc. before its acquisition by EQT. The company has initiated a search for a permanent CFO, indicating a strategic move to fill this critical executive position.

Key Highlights

  • 1Jimmi Sue Smith terminated as Senior Vice President and Chief Financial Officer, effective August 29, 2019.
  • 2Termination was without cause, making Ms. Smith eligible for severance under her Restrictive Covenant Agreement.
  • 3Ms. Smith's severance package may include payments, equity acceleration, and benefits, subject to certain conditions.
  • 4Kyle Derham appointed as Interim Chief Financial Officer and Principal Financial Officer.
  • 5Mr. Derham has prior experience with EQT as a consultant and was involved in Rice Energy's finance and corporate development.
  • 6EQT Corporation has commenced a search for a permanent Chief Financial Officer.
  • 7Compensation for the interim CFO, Mr. Derham, has not yet been determined.

Frequently Asked Questions

The primary financial impact will be the severance payments, equity acceleration, and benefits EQT is obligated to provide Ms. Smith under her Restrictive Covenant Agreement, assuming she meets the stipulated conditions. The exact cost will depend on the specific terms within the agreement and any acceleration of equity vesting. Investors should look for details on this in future filings.

Kyle Derham is the newly appointed Interim Chief Financial Officer. He is 32 years old and has been a consultant to EQT since July 2019. He is a Partner at Rice Investment Group and previously served as Vice President, Finance and Corporate Development at Rice Energy Inc. before its acquisition by EQT.

The filing states that the company has begun a search process to identify a permanent Chief Financial Officer. No specific timeline has been provided for the completion of this search.

'Termination without cause' means EQT ended Ms. Smith's employment for reasons other than misconduct or failure to perform her duties. This triggers specific provisions in her employment agreement, allowing her to receive severance benefits, which typically include continued salary, health benefits, and potentially accelerated vesting of stock options or restricted stock, as outlined in her Restrictive Covenant Agreement.