What is a "Say-On-Pay" vote?

A "Say-On-Pay" vote is a non-binding shareholder advisory vote that gives shareholders the opportunity to vote on the compensation of the company's named executive officers. It allows investors to express their views on the company's executive compensation philosophy and practices.

What was the outcome of the "Say-On-Pay" vote at Cheniere's 2011 Annual Meeting?

At the June 16, 2011 Annual Meeting, Cheniere Energy's stockholders voted in favor of holding "Say-On-Pay" votes on an annual basis.

What action did Cheniere's Board of Directors take in response to the shareholder vote?

The Board of Directors met on September 8, 2011, and formally determined that the Company will hold future non-binding "Say-On-Pay" votes on an annual basis, aligning with the stockholders' advisory vote.

How often will Cheniere Energy be required to vote on the frequency of "Say-On-Pay" votes?

Cheniere Energy is required to hold an advisory vote on the frequency of "Say-On-Pay" votes (i.e., whether to hold them annually, biennially, or every three years) every six years.

LNG 8-K: Shareholder Matters

Summary

This 8-K Amendment from Cheniere Energy, Inc. (LNG) reports on the outcome of a stockholder advisory vote regarding "Say-On-Pay" proposals. At the Annual Meeting held on June 16, 2011, shareholders voted in favor of holding "Say-On-Pay" votes on an annual basis. Following this advisory vote, Cheniere's Board of Directors formally decided on September 8, 2011, to implement annual advisory votes on executive compensation. This decision means that investors can expect to provide their non-binding input on executive compensation packages every year. The company is obligated to hold such advisory votes on the frequency of "Say-On-Pay" votes every six years. This development signifies an increased level of shareholder engagement and transparency in executive compensation practices at Cheniere Energy.

Key Highlights

1Cheniere Energy will hold annual non-binding advisory votes on executive compensation ("Say-On-Pay").
2This decision follows a stockholder advisory vote at the June 16, 2011 Annual Meeting.
3The Board of Directors formally adopted the annual "Say-On-Pay" vote policy on September 8, 2011.
4The company is required to re-evaluate the frequency of "Say-On-Pay" votes every six years.
5This filing reflects increased shareholder influence on executive compensation matters.

Cheniere Energy, Inc. 8-K/A Report, Shareholder Vote Results (Sep 12, 2011)

Summary

Key Highlights

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