How will officer bonuses be determined in 2006?

Officer bonuses for 2006 will be primarily determined by the company's Earnings Per Share (EPS), excluding specific accounting adjustments and gains/losses from asset sales. The actual EPS will be compared against threshold and target levels set by the Executive Compensation Committee. Individual and business unit performance metrics can also influence the final award amount.

What happens if ONEOK's 2006 EPS is below the set threshold?

If ONEOK's actual EPS for 2006 falls below the threshold level established by the Executive Compensation Committee, no incentive amount will be paid under the AOIP based on the corporate performance criteria.

Is there a limit to how much an officer can earn through the incentive plan?

Yes, if the maximum target EPS is achieved or exceeded, an officer's incentive award can be up to 200% of their target award. However, the final award can be adjusted by the Committee based on other performance factors.

OKE 8-K: Material Agreements

Q: What is the main purpose of this 8-K filing?

The main purpose of this filing is to inform investors that ONEOK, Inc. has set the corporate performance criteria for its 2006 Annual Officer Incentive Plan (AOIP). This plan is designed to motivate and reward company officers based on financial performance.

Summary

This 8-K filing from ONEOK, Inc. (OKE) on January 20, 2006, announces the establishment of the corporate performance criteria for its 2006 Annual Officer Incentive Plan (AOIP). The AOIP is designed to provide cash incentive awards to officers based on individual performance, the overall performance and profitability of ONEOK, and the performance of specific business units. For 2006, the key corporate performance metric for incentive awards will be Earnings Per Share (EPS), excluding certain accounting adjustments and asset sale gains/losses. The plan outlines that no incentive will be paid if the actual EPS falls below a predetermined threshold. Achieving or exceeding the maximum target EPS could result in an incentive award of up to 200% of the officer's target award. The Executive Compensation Committee retains the authority to further adjust these awards based on business unit and individual performance.

Key Highlights

1ONEOK established corporate performance criteria for its 2006 Annual Officer Incentive Plan (AOIP) on January 19, 2006.
2The AOIP aims to incentivize officers through cash awards tied to company and individual performance.
3The primary corporate performance metric for 2006 awards is Earnings Per Share (EPS).
4EPS used for incentive calculation will exclude cumulative accounting changes and certain gains/losses on asset sales.
5A minimum EPS threshold must be met for any incentive award to be paid.
6Exceeding the maximum target EPS could lead to an incentive award of up to 200% of the target amount.
7The Executive Compensation Committee has discretion to adjust awards based on business unit and individual performance.

ONEOK INC /NEW/ 8-K Report, Material Agreement (Jan 20, 2006)

Summary

Key Highlights

Frequently Asked Questions