Summary
ONEOK, Inc. (OKE) filed an 8-K on January 22, 2008, announcing key decisions regarding executive compensation and shareholder returns. The company's Executive Compensation Committee established the corporate performance criteria for the 2008 Annual Officer Incentive Plan (AOIP), basing incentive awards 50% on Return on Invested Capital (ROIC) and 50% on Earnings Per Share (EPS), both excluding accounting changes. Specific thresholds and maximum payout levels were detailed, with the potential for incentive awards to reach 200% of target if maximum ROIC and target EPS are achieved. In addition to compensation details, ONEOK also announced a 6.7% increase in its fourth quarter 2007 common stock dividend, raising it from 36 cents to 38 cents per share. This dividend is payable on February 14, 2008, to shareholders of record on January 31, 2008. The company also set the date and location for its 2008 annual shareholder meeting.
Key Highlights
- 1Established 2008 corporate performance criteria for Annual Officer Incentive Plan (AOIP) based on ROIC and EPS.
- 2ROIC and EPS performance metrics will be exclusive of cumulative accounting changes.
- 3Incentive payouts tied to ROIC cannot exceed 150% of target, weighted at 50%.
- 4Incentive payouts tied to EPS cannot exceed 50% of target payment, weighted at 50%.
- 5Potential for incentive awards to reach 200% of target if maximum ROIC and target EPS are met.
- 6Increased the fourth quarter 2007 common stock dividend by 6.7% to $0.38 per share.
- 7Set May 15, 2008, as the date for the 2008 annual shareholder meeting.