8-KLeadership Changes

TechnipFMC plc 8-K Report, Executive Changes (Feb 24, 2017)

Filed February 24, 2017For Securities:FTI

Summary

This 8-K filing from TechnipFMC plc, dated February 24, 2017, reports on executive compensation decisions made by the Compensation Committee. Specifically, it details the approved grants of stock options, restricted stock units (RSUs), and performance stock units (PSUs) to Maryann T. Mannen, the Executive Vice President and Chief Financial Officer. These grants are designed to align executive compensation with long-term company performance and shareholder value. The total value of these awards is substantial, approximately four times Ms. Mannen's base salary, with a significant portion allocated to performance-based equity. The structure, with 60% in PSUs, reflects a strong emphasis on achieving specific financial and shareholder return targets over a defined performance period. The vesting schedules and performance metrics are key elements that investors should monitor to assess the potential future value and alignment of executive incentives.

Key Highlights

  • 1Grants of stock options, RSUs, and PSUs approved for CFO Maryann T. Mannen.
  • 2Total grant value is approximately four times the CFO's base salary.
  • 3Award allocation: 60% PSUs, 20% RSUs, 20% options, based on grant date fair value.
  • 4Options have an exercise price equal to the NYSE closing price on the grant date.
  • 5Options and RSUs vest after a three-year period from the grant date.
  • 6PSUs have a performance period of January 1, 2017, through December 31, 2019.
  • 7PSU vesting is contingent upon achieving performance goals related to total shareholder return versus a peer group and return on invested capital, with vesting occurring three years after the grant date.
  • 8Vested RSUs and PSUs will be settled in ordinary shares of TechnipFMC plc.

Frequently Asked Questions

The primary purpose of these equity grants is to incentivize and reward the Chief Financial Officer, Maryann T. Mannen, by aligning her compensation with the long-term performance and value creation of TechnipFMC plc. The significant portion allocated to performance stock units (PSUs) directly links a large part of her compensation to achieving specific company financial and shareholder return goals.

The Performance Stock Units (PSUs) are measured against two key performance criteria over the period from January 1, 2017, to December 31, 2019: 1) Total Shareholder Return (TSR) of the Company as compared to a peer group established by the Board of Directors, and 2) Return on Invested Capital (ROIC).

The stock options and Restricted Stock Units (RSUs) will vest over a three-year period. The Performance Stock Units (PSUs) have a performance period of three years (January 1, 2017, to December 31, 2019) and will vest three years after the grant date, subject to the achievement of the specified performance goals.

The total value of these grants is approximately four times Ms. Mannen's base salary. This indicates a substantial incentive designed to retain key executive talent and heavily weight compensation towards future company performance and shareholder returns.