8-KMaterial AgreementsExhibits & Filings

Cheniere Energy, Inc. 8-K Report, Material Agreement (Jan 5, 2006)

Filed January 5, 2006For Securities:LNG

Summary

This 8-K filing from Cheniere Energy, Inc., dated January 5, 2006, reports on material definitive agreements related to executive compensation. Specifically, the Compensation Committee approved increases to the base salaries of its CEO and other executive officers, effective January 1, 2006. The filing details the new annual base salaries for key executives, including Charif Souki (CEO) and Stanley C. Horton (President and COO), along with other Vice Chairman and Senior Vice Presidents. Furthermore, the company announced the authorization of cash and restricted stock bonuses for executive officers based on achieving a specified total stockholder return for the 2005 fiscal year. These bonuses are tied to performance and the restricted stock component will vest over a three-year period. Investors should note that the specific details of these bonus amounts and 2006 salaries are incorporated by reference as Exhibit 10.1.

Key Highlights

  • 1Cheniere Energy's Compensation Committee approved salary increases for executive officers, effective January 1, 2006.
  • 2CEO Charif Souki's annual base salary increased to $550,000.
  • 3President and COO Stanley C. Horton's annual base salary increased to $425,000.
  • 4Vice Chairman and Senior Vice Presidents received base salary increases to $250,000 annually.
  • 5Executive officers are eligible for cash and restricted stock bonuses tied to 2005 total stockholder return performance.
  • 6Restricted stock bonuses vest in one-third increments annually over three years.
  • 7Detailed compensation information is available in Exhibit 10.1, incorporated by reference.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose material definitive agreements regarding executive compensation. Specifically, it announces approved increases in base salaries for key executive officers and the authorization of performance-based bonuses for the 2005 fiscal year.

The approved base salary increases for the executive officers became effective as of January 1, 2006. The performance bonuses relate to the fiscal year ending December 31, 2005.

The exact amounts for the 2005 cash and restricted stock bonuses, as well as the 2006 annual base salaries for each executive officer, are detailed in Exhibit 10.1, titled 'Summary of Compensation for Executive Officers,' which is incorporated by reference into this filing.

The bonuses are performance-based. They were authorized based on the executive officers achieving a specified total stockholder return for the period of January 1, 2005, through December 31, 2005. The restricted stock component of these bonuses also has a vesting schedule tied to anniversaries of the grant date.