Summary
ONEOK Inc. (OKE) filed an 8-K on February 22, 2013, primarily detailing changes to its executive compensation plans and a director's departure. The board approved amended and restated award agreements for restricted stock units and performance units, importantly changing the policy to allow for dividend equivalents to be credited and paid upon vesting. This modification is a positive development for executives and key employees participating in these long-term incentive plans, as it enhances the potential return on their awards. Additionally, the company announced that director Gerald B. Smith will not seek reelection at the upcoming annual shareholder meeting on May 22, 2013, leading to a reduction in the size of both the ONEOK Inc. and ONEOK Partners GP boards. The company also confirmed the date and location for its 2013 annual shareholder meeting.
Key Highlights
- 1ONEOK, Inc. amended its Long-Term Incentive Plan (LTIP) and Equity Compensation Plan (ECP) to allow for dividend equivalents on restricted stock and performance unit awards.
- 2Previously, dividend equivalents were not credited on awards prior to vesting; this change means participants will now receive these benefits, paid in stock and cash, upon vesting.
- 3The amendment applies to new awards granted under the amended and restated agreements and does not impact awards from previous years.
- 4Director Gerald B. Smith will not stand for reelection at the May 22, 2013 annual shareholder meeting due to other commitments.
- 5Gerald B. Smith will also resign from the board of ONEOK Partners GP, L.L.C. on the same date.
- 6The number of directors on ONEOK, Inc.'s board will decrease to 10 from 11, and on ONEOK Partners GP's board to 8 from 9.
- 7The company announced its 2013 annual shareholder meeting will be held on May 22, 2013, at its Tulsa, Oklahoma headquarters.