8-KLeadership Changes

Energy Transfer LP 8-K Report, Executive Changes (Mar 18, 2009)

Filed March 18, 2009For Securities:ETET-PI

Summary

This 8-K filing from Energy Transfer LP (ET) on March 18, 2009, primarily discloses the discretionary bonuses awarded to its named executive officers for the fiscal year ended December 31, 2008. The bonuses were determined and paid in March 2009. The filing provides a breakdown of salary, bonus, and other compensation components for key executives, including Mackie McCrea (President and COO), Martin Salinas, Jr. (CFO), Jerry J. Langdon (Chief Administrative and Compliance Officer), Thomas P. Mason (VP, General Counsel and Secretary), and Brian J. Jennings (Former CFO). Investors should note the significant bonus amounts awarded, especially in relation to base salaries, which reflect performance-based incentives for the 2008 fiscal year. The filing also includes details on equity-based compensation expense, noting a negative expense for the former CFO due to unit forfeiture upon resignation. This information is crucial for understanding executive compensation structures and potential impacts on the company's financial statements.

Key Highlights

  • 1Disclosure of discretionary bonuses paid to named executive officers for fiscal year 2008, determined and paid in March 2009.
  • 2Mackie McCrea (President and COO) received a total compensation of $2,219,431, including a $750,000 bonus.
  • 3Thomas P. Mason (VP, General Counsel and Secretary) received the highest total compensation of $4,129,473, with a bonus of $630,000.
  • 4Martin Salinas, Jr. (CFO) and Jerry J. Langdon (Chief Administrative and Compliance Officer) also received substantial bonuses and total compensation.
  • 5Brian J. Jennings, former CFO, resigned in June 2008, resulting in a negative equity compensation expense due to unit forfeiture.
  • 6The filing provides details on equity-based compensation expense calculations, adhering to SFAS 123(R) standards.
  • 7Other compensation components include 401(k) contributions and equity awards from an affiliate.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose the discretionary bonuses awarded to Energy Transfer's named executive officers for the fiscal year 2008, which were determined and paid in March 2009.

The bonus amounts shown represent discretionary bonuses paid by Energy Transfer Equity, L.P. (ETE) and Energy Transfer Partners, L.P. (ETP) to the named executive officers of ETP for the fiscal year ended December 31, 2008. These bonuses were determined by ETE and ETP.

The 'Equity Compensation Expense' column reflects compensation expense recognized in the consolidated financial statements for 2008, determined according to SFAS 123(R). It's based on the grant-date fair value of awards. The negative amount for Brian J. Jennings is due to the reversal of previously recorded compensation expense resulting from the forfeiture of units upon his resignation in June 2008.

The discretionary bonuses, relating to the fiscal year ended December 31, 2008, were paid in March 2009.