Summary
Cheniere Energy, Inc. (LNG) filed an 8-K on March 12, 2014, detailing the terms of a Termination Agreement with former Senior Vice President and Chief Financial Officer, H. Davis Thames, effective March 7, 2014. This agreement finalizes the terms surrounding his departure, which was initially disclosed as of January 14, 2014. The agreement outlines specific compensation arrangements related to Mr. Thames's departure, including the early vesting of certain awards and restricted stock. Key financial implications for investors revolve around the compensation granted to Mr. Thames as part of his exit. Specifically, Cheniere agreed to the early vesting of $1.8 million under a Long-Term Commercial Cash Award and 275,000 shares of restricted stock, both originally granted on August 9, 2012. In return, Mr. Thames forfeited 420,000 unvested shares of restricted stock granted on February 18, 2013. The agreement also includes mutual releases from claims and non-solicitation covenants for a period of two years, designed to protect the company's employees and business relationships.
Key Highlights
- 1Formalized termination agreement with former SVP and CFO, H. Davis Thames, effective March 7, 2014.
- 2Company agreed to early vesting of $1.8 million in a Long-Term Commercial Cash Award for Mr. Thames.
- 3Company agreed to early vesting of 275,000 shares of restricted stock for Mr. Thames.
- 4Mr. Thames forfeited 420,000 unvested shares of restricted stock originally granted on February 18, 2013.
- 5Agreement includes mutual releases of claims between Cheniere and Mr. Thames.
- 6Mr. Thames agreed to a two-year non-solicitation covenant regarding employees, clients, and suppliers.