8-KLeadership Changes

Energy Transfer LP 8-K Report, Executive Changes (Oct 25, 2018)

Filed October 25, 2018For Securities:ETET-PI

Summary

This 8-K filing from Energy Transfer LP (ET) announces a special one-time bonus award granted to Chief Financial Officer (CFO) Thomas E. Long. The award is in recognition of his significant contributions to key strategic initiatives, most notably the successful merger of Energy Transfer Partners, L.P. with a subsidiary of ET. This development highlights the company's recent successful integration efforts and its commitment to retaining key executive talent through performance-based incentives.

Key Highlights

  • 1CFO Thomas E. Long received a special one-time bonus award.
  • 2The award is in recognition of Mr. Long's contributions to strategic initiatives, including the merger of Energy Transfer Partners, L.P.
  • 3The total award consists of $1,000,000 in cash.
  • 4The award also includes 115,200 restricted common units of ET.
  • 5The restricted units are subject to a vesting schedule: 60% on December 5, 2021, and 40% on December 5, 2023.
  • 6Vesting is contingent upon continued employment with the Partnership.
  • 7The award was approved by the compensation committee of the Board of Directors on October 19, 2018.

Frequently Asked Questions

Thomas E. Long was awarded the special bonus in recognition of his contributions to key strategic initiatives, specifically mentioning the successful merger of Energy Transfer Partners, L.P. with a subsidiary of Energy Transfer LP.

The special award has two components: $1,000,000 in cash and 115,200 restricted common units of ET. The value of the restricted units will depend on the market price of ET units at the time of vesting.

The restricted units will vest in two tranches: 60% will vest on December 5, 2021, and the remaining 40% will vest on December 5, 2023. Continued employment with Energy Transfer LP on those dates is required for vesting.

While the cash portion of the bonus is likely expensed around the grant date or payout, the restricted units will be expensed over their vesting period. Investors should look to future SEC filings (e.g., 10-Q, 10-K) for detailed financial reporting on compensation expenses.