Summary
Kinder Morgan, Inc. (KMI) filed an 8-K on January 26, 2021, to announce updates to its Annual Incentive Plan. The primary driver for this amendment is to align the plan with changes in tax law, specifically the Tax Cuts and Jobs Act of 2017, which eliminated certain performance-based compensation exceptions under Section 162(m) of the Internal Revenue Code. These changes are effective as of January 20, 2021. While the core purpose is to remove outdated references and make necessary adjustments due to tax legislation, investors should note that the company has also revised the performance criteria for incentive goals and clarified procedures for establishing the bonus pool. These modifications are intended to ensure the incentive plan remains effective and compliant with current regulations while continuing to incentivize executive performance.
Key Highlights
- 1KMI amended and restated its Annual Incentive Plan effective January 20, 2021.
- 2The primary update is the removal of references to Section 162(m) of the Internal Revenue Code due to the Tax Cuts and Jobs Act of 2017.
- 3The company adjusted provisions related to performance-based compensation that are no longer applicable under the new tax law.
- 4The revised plan includes an updated list of performance criteria that can be used for setting incentive goals.
- 5Procedures for establishing the bonus pool, performance goals, and individual bonus opportunities have been clarified.
- 6The filing explicitly incorporates the full text of the Amended and Restated Annual Incentive Plan as an exhibit.
- 7David P. Michels, Vice President and Chief Financial Officer, signed the report, indicating executive oversight.