Summary
Cheniere Energy, Inc. (LNG) filed an 8-K report on July 31, 2006, detailing a material definitive agreement concerning the compensation of its non-employee directors. The Compensation Committee of the Board of Directors approved a compensation package for the period between the 2006 and 2007 annual shareholder meetings. This compensation includes a base payment of $100,000 to each non-employee director, with an additional $20,000 for the chairs of the Audit and Compensation Committees. Directors have the flexibility to receive this compensation entirely in cash, entirely in restricted stock, or a 50/50 split. Cash payments are to be made quarterly, starting July 31, 2006, while restricted stock awards will be issued in December 2006, with their value determined by a 25% discount to the market price on the date of grant. The restricted stock will vest over three years.
Key Highlights
- 1Cheniere Energy's Compensation Committee approved a new compensation structure for non-employee directors.
- 2Each non-employee director will receive $100,000 for services rendered between the 2006 and 2007 annual shareholder meetings.
- 3Committee chairs (Audit and Compensation) will receive an additional $20,000.
- 4Directors have the option to receive compensation in cash, restricted stock, or a combination of both.
- 5Cash payments will be disbursed quarterly, with the first payment on July 31, 2006.
- 6Restricted stock will be issued in December 2006, with the grant price determined by a 25% discount to the closing stock price on the date of grant.
- 7The restricted stock awarded will vest in one-third increments annually over three years.