Summary
Cheniere Energy, Inc. (LNG) filed an 8-K on April 5, 2007, primarily to disclose the establishment of its 2007 performance goals and potential bonus payouts for its executive officers. The company's Compensation Committee's Section 162(m) Subcommittee set these goals on March 30, 2007. A key condition for any bonus payout is a minimum increase in Cheniere's total shareholder return during the 2007 calendar year. If the performance targets are met or exceeded, several named executive officers, including Charif Souki, Stanley C. Horton, and others, are eligible to receive a maximum of 500,000 shares of phantom stock each. These awards are subject to the limits outlined in the company's 2003 Stock Incentive Plan. Payments, if any, are expected to be made by March 15, 2008. This filing provides insight into management's incentive structure and the company's focus on shareholder return in 2007.
Key Highlights
- 1Cheniere Energy established 2007 performance goals and maximum bonus payouts for key executives on March 30, 2007.
- 2A minimum increase in total shareholder return for 2007 is a prerequisite for executive bonuses.
- 3Several named officers, including the CEO, are eligible for up to 500,000 shares of phantom stock each.
- 4Phantom stock awards are convertible to common stock or cash equivalent, at the Subcommittee's discretion.
- 5Awards are capped by the Company's Amended and Restated 2003 Stock Incentive Plan.
- 6Potential bonus payments are scheduled to be made by March 15, 2008.
- 7The filing highlights a focus on aligning executive compensation with shareholder value creation.