Summary
Cheniere Energy, Inc. (LNG) filed an 8-K on December 14, 2005, to report a material definitive agreement concerning director compensation. The company's Board of Directors approved compensation for its non-employee directors for the period of May 2005 through May 2006. This compensation will be paid in shares of the company's restricted stock, totaling $100,000 for each director and an additional $20,000 for the chairs of the Audit and Compensation Committees. The valuation of the restricted stock was based on the closing price on December 8, 2005, with a 25% discount. Vesting of the restricted stock will occur in three equal installments on each anniversary of the grant date, starting December 8, 2006. This filing provides transparency regarding how the company is compensating its board members, which is a key governance aspect for investors to consider.
Key Highlights
- 1Non-employee directors to be compensated with restricted stock for services rendered between May 2005 and May 2006.
- 2Each non-employee director will receive $100,000 worth of restricted stock.
- 3Audit Committee and Compensation Committee chairs to receive an additional $20,000 in restricted stock.
- 4Restricted stock valuation is based on the December 8, 2005 closing price, discounted by 25%.
- 5Vesting of the restricted stock will occur over three years, with one-third vesting annually starting December 8, 2006.
- 6The filing includes Exhibit 10.1, a summary of this director compensation.
- 7The report was filed on December 13, 2005, with the earliest event reported on December 8, 2005.