8-KLeadership Changes

Phillips 66 8-K Report, Executive Changes (Mar 1, 2021)

Filed March 1, 2021For Securities:PSX

Summary

Phillips 66 (PSX) announced a significant leadership change in its 8-K filing dated March 1, 2021. Mark E. Lashier has been appointed as the new President and Chief Operating Officer, effective April 1, 2021. Mr. Lashier brings extensive experience from his previous role as President and CEO of Chevron Phillips Chemical Company LLC (CPChem), a significant joint venture for Phillips 66, where he held various leadership positions since 2000. This appointment is accompanied by a compensation package designed to attract and retain Mr. Lashier, including a base salary of $1,100,000, a variable incentive cash program with a target of 110% of base salary, and a substantial long-term incentive grant valued at $6,050,000 for 2021. A one-time grant of restricted stock units valued at $1,000,000 is also included to compensate for forfeited compensation from CPChem. Investors should view this as a strategic move to leverage experienced leadership within the company's operational sphere.

Key Highlights

  • 1Mark E. Lashier appointed President and Chief Operating Officer, effective April 1, 2021.
  • 2Lashier has a strong background, previously serving as President and CEO of Chevron Phillips Chemical Company LLC (CPChem).
  • 3Annual base salary for Mr. Lashier set at $1,100,000.
  • 4Eligible for a variable incentive cash program (VCIP) with a target opportunity of 110% of base salary.
  • 52021 long-term incentive grant valued at $6,050,000, comprising performance shares, stock options, and restricted stock units.
  • 6Received a one-time restricted stock unit grant of $1,000,000 to offset forfeited CPChem compensation.
  • 7No disclosed family relationships or prior transactions with current directors or officers.

Frequently Asked Questions

Mark E. Lashier is the newly appointed President and Chief Operating Officer of Phillips 66, effective April 1, 2021. He has extensive experience in the petrochemical industry, having served as President and Chief Executive Officer of Chevron Phillips Chemical Company LLC (CPChem) since 2017. Prior to that, he held various senior leadership roles at CPChem since 2000.

Mr. Lashier's compensation includes an annual base salary of $1,100,000, eligibility for a variable incentive cash program with a target payout of 110% of his base salary, and a 2021 long-term incentive grant valued at $6,050,000. Additionally, he received a one-time restricted stock unit grant of $1,000,000 to compensate for forfeited compensation from his previous role at CPChem.

The appointment of Mark E. Lashier as President and Chief Operating Officer signals a focus on experienced operational leadership. His background at CPChem, a significant joint venture for Phillips 66, suggests a deep understanding of the company's business and the broader energy and chemical sectors. This move is likely aimed at driving operational efficiency and strategic execution.

According to the filing, there are no disclosed arrangements or understandings with other persons related to Mr. Lashier's appointment, nor are there any family relationships with current directors or executive officers. He also has no direct or indirect interest in any transaction required to be disclosed under SEC regulations.