8-KLeadership ChangesExhibits & Filings

Cheniere Energy, Inc. 8-K Report, Executive Changes (Feb 5, 2014)

Filed February 5, 2014For Securities:LNG

Summary

This 8-K filing from Cheniere Energy, Inc. (LNG) on February 5, 2014, primarily details changes in executive compensation and employment arrangements. The Compensation Committee approved an increase in the annual base salary for Michael J. Wortley, Senior Vice President and Chief Financial Officer, to $525,000, effective January 27, 2014. This adjustment reflects the company's recognition of his role and responsibilities. Additionally, the filing outlines a new U.K. Employment Agreement for Jean Abiteboul, Senior Vice President-International. This agreement formalizes his transfer of employment to Cheniere Supply & Marketing, a subsidiary, where he will serve as President. The terms include a significant base salary in GBP, housing and car allowances, and a comprehensive benefits package covering health and retirement, with cost-sharing between the company and Mr. Abiteboul. This move also involves terminating his previous French employment agreement and includes a non-competition clause.

Key Highlights

  • 1CFO Michael J. Wortley's annual base salary increased to $525,000, effective January 27, 2014.
  • 2Jean Abiteboul, SVP-International, has a new U.K. Employment Agreement with subsidiary Cheniere Supply & Marketing.
  • 3Mr. Abiteboul will serve as President of Cheniere Supply & Marketing, transferring from his previous French employment agreement.
  • 4Mr. Abiteboul's new annual salary is £298,682, subject to annual review.
  • 5Significant allowances for housing (£14,353/month) and car (£1,000/month) are included for Mr. Abiteboul.
  • 6Cheniere Supply & Marketing will cover 60% of Mr. Abiteboul's health insurance and retirement contributions.
  • 7The U.K. Employment Agreement includes a six-month non-competition and non-solicitation covenant for Mr. Abiteboul.

Frequently Asked Questions

The filing states that the Compensation Committee approved an increase in the annual base salary for Michael J. Wortley, Senior Vice President and Chief Financial Officer, to $525,000. While specific reasons are not detailed, such increases are typically to reflect an executive's value, responsibilities, and market compensation standards.

This agreement formalizes Jean Abiteboul's role as President of Cheniere Supply & Marketing, a wholly-owned subsidiary, and transfers his employment from his previous French agreement. It standardizes his compensation package, including a substantial salary in GBP, allowances, and benefits, and establishes a clear employment relationship with the subsidiary.

Mr. Abiteboul's new annual salary is £298,682, with potential for discretionary bonuses. He will also receive a housing allowance of £14,353 per month and a car allowance of £1,000 per month. Cheniere Supply & Marketing will cover 60% of his contributions towards health insurance and retirement benefits.

Yes, the U.K. Employment Agreement includes a six-month non-competition and non-solicitation covenant applicable to Mr. Abiteboul after the termination of his employment.