Summary
Kinder Morgan, Inc. (KMI) filed an 8-K on January 22, 2019, detailing two key corporate actions. The first pertains to an amendment to its 2015 Stock Incentive Plan, introducing a minimum 36-month vesting period for stock-based awards, with a carve-out for up to 5% of available shares. This change aims to enhance long-term alignment between executive compensation and shareholder value. The second significant update involves the official elimination of the 9.75% Series A Mandatory Convertible Preferred Stock from the company's charter. This action was a formality, as no shares of this preferred stock were ever issued or outstanding. While not impacting current financials or operations, these filings demonstrate corporate governance adjustments and housekeeping for previously authorized but unissued securities.
Key Highlights
- 1KMI amended its 2015 Stock Incentive Plan to implement a minimum 36-month vesting period for stock awards.
- 2An exception allows up to 5% of shares to be exempt from the minimum vesting requirement.
- 3This amendment is intended to promote longer-term executive commitment and align incentives with shareholders.
- 4KMI filed a Certificate of Elimination to remove provisions for the 9.75% Series A Mandatory Convertible Preferred Stock from its charter.
- 5No shares of the Series A Mandatory Convertible Preferred Stock were ever issued or outstanding.
- 6The filing of the Certificate of Elimination is a procedural step to clean up the company's corporate documents.
- 7David P. Michels, Vice President and Chief Financial Officer, signed the report.