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

The main purpose of this filing is to inform investors about the corporate performance criteria established for ONEOK's 2007 Annual Officer Incentive Plan (AOIP). This plan outlines how certain officers' cash incentive awards will be determined based on the company's financial performance.

What financial metrics will determine officer bonuses in 2007?

Officer bonuses in 2007 will be determined by two key financial metrics: Return on Invested Capital (ROIC) and Earnings Per Share (EPS). Each metric accounts for 50% of the performance-based component of the incentive awards.

What are the potential payouts under the 2007 AOIP?

The potential payout is structured with a threshold, target, and maximum. If maximum ROIC and target EPS are achieved or exceeded, an officer's incentive award could reach up to 200% of their target award. However, no incentive is paid if the ROIC falls below the established threshold, and specific limits apply to payments based on each metric.

Does the company have flexibility in determining the final incentive award?

Yes, the Executive Compensation Committee has the authority to adjust the final incentive award amount. This adjustment can be based on business unit performance and individual officer performance, in addition to the corporate ROIC and EPS targets.

OKE 8-K: Leadership Changes

Summary

This 8-K filing from ONEOK Inc. (OKE), dated January 23, 2007, primarily concerns the establishment of corporate performance criteria for the company's 2007 Annual Officer Incentive Plan (AOIP). The plan aims to incentivize key officers through cash awards tied to specific financial metrics. For 2007, the AOIP performance is weighted equally between Return on Invested Capital (ROIC) and Earnings Per Share (EPS), both excluding the impact of accounting changes. Specific threshold, target, and maximum levels for ROIC and EPS have been set by the Executive Compensation Committee. Achieving maximum ROIC and target EPS could result in an incentive award of up to 200% of an officer's target award. The Committee retains discretion to adjust awards based on business unit and individual performance.

Key Highlights

1ONEOK has established corporate performance criteria for its 2007 Annual Officer Incentive Plan (AOIP).
2The 2007 AOIP performance is split 50% based on Return on Invested Capital (ROIC) and 50% based on Earnings Per Share (EPS).
3Both ROIC and EPS metrics exclude the cumulative effect of accounting changes for the 2007 incentive plan.
4Specific threshold, target, and maximum performance levels for ROIC and EPS have been set by the Executive Compensation Committee.
5Achievement of maximum ROIC and target EPS could lead to an incentive award of up to 200% of an officer's target award.
6The Executive Compensation Committee retains the authority to adjust incentive awards based on business unit and individual performance criteria.
7The plan is designed to align officer compensation with company profitability and shareholder value.

ONEOK INC /NEW/ 8-K Report, Executive Changes (Jan 23, 2007)

Summary

Key Highlights

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