Summary
This filing is an amendment to Energy Transfer Equity, L.P.'s (ETE) 2010 Form 10-K, primarily addressing comments from the SEC related to executive compensation. The document details the compensation philosophy, methodologies, and components for ETE's named executive officers, as well as those of its subsidiaries, Energy Transfer Partners, L.P. (ETP) and Regency Energy Partners LP (Regency). Compensation strategies emphasize a significant incentive-based component, balancing short-term and long-term performance through discretionary cash bonuses and restricted unit awards. The report also outlines director compensation and discusses certain related-party transactions, particularly concerning the acquisition of Regency and ongoing shared services agreements with ETP and Regency.
Financial Highlights
44 data points| Revenue | $6.56B |
| Cost of Revenue | $4.10B |
| Gross Profit | $2.49B |
| SG&A Expenses | $233.00M |
| Operating Expenses | $5.51B |
| Operating Income | $1.04B |
| Interest Expense | $625.00M |
| Net Income | $193.00M |
Key Highlights
- 1The compensation philosophy for ETE and ETP is to attract, retain, and reward talented executives by offering competitive total compensation, emphasizing performance-based incentives, and aligning executive interests with unitholder interests.
- 2For 2010, ETE's President and CFO, John W. McReynolds, received total compensation of $2,103,962, comprising base salary, a discretionary cash bonus, and equity awards.
- 3ETP's CEO, Kelcy L. Warren, voluntarily took a nominal salary of $1.00 and received no bonus or equity awards, with his total compensation for 2010 being $2,766.
- 4Significant equity awards (restricted units) were granted to ETP's named executive officers in 2010, with vesting periods typically spanning five years, aimed at retention and long-term performance alignment.
- 5The acquisition of Regency in May 2010 involved complex transactions, including the issuance of preferred units and exchanges of interests, with special committees determining the fairness of these related-party transactions.
- 6Director compensation includes annual retainers, meeting fees, and equity awards for non-employee directors of ETE and its subsidiaries, reflecting their roles on various boards and committees.
- 7The filing clarifies that ETE and ETP do not have employment agreements providing for termination or severance benefits or payments upon a change in control, though incentive plans include provisions for accelerated vesting in such events.