Summary
Cheniere Energy, Inc. (LNG) filed an 8-K on February 19, 2019, detailing changes to its executive compensation structure. The Board of Directors, upon recommendation from the Compensation Committee, approved a new Performance Stock Unit Award Agreement (PSU Agreement) for its named executive officers. This updated agreement allows for a maximum payout of 300% of the target level for performance stock units, an increase from previous terms. Furthermore, the filing discloses specific PSU awards granted to key executives, including CEO Jack Fusco, with the number of shares earned contingent on achieving specific cumulative distributable cash flow (DCF) per share and total shareholder return targets between January 1, 2019, and December 31, 2021. This move signals a continued emphasis on performance-based incentives tied to financial and shareholder returns.
Key Highlights
- 1Approval of a new Performance Stock Unit (PSU) Award Agreement for named executive officers.
- 2Maximum potential payout for PSUs increased to 300% of the target level.
- 3Specific PSU awards granted to named executive officers on February 13, 2019.
- 4Earned PSUs are contingent on achieving cumulative Distributable Cash Flow (DCF) per share and Total Shareholder Return targets.
- 5Performance period for PSU awards is from January 1, 2019, to December 31, 2021.
- 6Actual shares earned can range from 25% to 300% of the target level, dependent on DCF performance.
- 7Vesting of PSU awards is subject to Compensation Committee certification of performance achievement.