8-KLeadership Changes

EQT Corp 8-K Report, Executive Changes (Feb 11, 2021)

Filed February 11, 2021For Securities:EQT

Summary

EQT Corporation announced the approval of its 2021 Short-Term Incentive Plan (2021 STIP) on February 9, 2021. This plan aims to provide annual bonus opportunities for executive officers and other employees, designed to maintain competitive compensation and align employee interests with shareholder value and the company's strategic goals. While largely similar to the 2020 STIP, the 2021 plan introduces new performance metrics that reflect EQT's operational focus and commitment to sustainability. The 2021 STIP introduces performance metrics including free cash flow per share, recycle ratio, adjusted well cost per foot, adjusted SG&A expense per Mcfe, greenhouse gas intensity, safety intensity, and employee days away restricted time. Payouts are contingent on achieving defined goals for these metrics, though the Compensation Committee retains discretion over final award amounts. Awards are for services rendered in calendar year 2021, payable in 2022. Notably, the plan allows for potential payment in shares of common stock instead of cash, under specific conditions and Compensation Committee discretion. In the event of a change of control, performance periods will be prorated and goals assumed achieved at target levels.

Key Highlights

  • 1EQT Corporation adopted the 2021 Short-Term Incentive Plan (2021 STIP) effective February 9, 2021.
  • 2The 2021 STIP aims to align executive and employee compensation with company performance and shareholder interests.
  • 3Key performance metrics for the 2021 STIP include financial (free cash flow per share, recycle ratio, SG&A, well costs), operational (safety), and ESG (greenhouse gas intensity) indicators.
  • 4Awards are based on performance during calendar year 2021 and are payable in 2022.
  • 5The Compensation Committee has discretion to adjust incentive awards.
  • 6Awards may be settled in cash or EQT common stock, at the Compensation Committee's discretion.
  • 7A change of control event triggers prorated performance measurement at target levels.

Frequently Asked Questions

The primary purpose of the 2021 STIP is to provide annual bonus opportunities to executive officers and other participating employees. It is designed to maintain competitive total cash compensation and critically, to align the interests of employees with those of EQT Corporation's shareholders and its strategic objectives.

While the overall structure is similar, the 2021 STIP introduces specific new performance metrics. These include financial metrics like free cash flow per share and recycle ratio, operational efficiency metrics such as adjusted well cost per foot and adjusted SG&A expense per Mcfe, and importantly, sustainability and safety metrics like greenhouse gas intensity and safety intensity, alongside employee safety indicators.

Awards earned under the 2021 STIP are for services provided during the calendar year 2021. The incentive awards will be paid in cash (or potentially stock) in 2022, within two and a half months following the end of the 2021 calendar year, after the Compensation Committee has determined and certified the achievement of performance goals.

In the event of a change of control of EQT Corporation, the performance period for the 2021 STIP will automatically end on the date of the change of control. The performance goals will be deemed achieved for the pro-rata portion of the performance period that has elapsed up to that date, calculated at target levels. Incentive awards will then be paid out on a pro-rata basis according to the plan's payment timelines, subject to the Compensation Committee's discretion.