8-KLeadership ChangesShareholder MattersOther Events+1

QUANTA SERVICES, INC. 8-K Report, Executive Changes (May 24, 2019)

Filed May 24, 2019For Securities:PWR

Summary

Quanta Services, Inc. (PWR) filed an 8-K on May 23, 2019, reporting on several key events. Notably, Executive Vice President – Finance and President – Infrastructure Solutions, Jesse E. Morris, resigned to pursue other opportunities, a departure confirmed to be without disagreement with the company. The filing also detailed the approval by stockholders of the Quanta Services, Inc. 2019 Omnibus Equity Incentive Plan, which will govern future equity awards to employees, directors, officers, and consultants. This new plan replaces the 2011 plan and has a provision for up to 7,000,000 shares plus any unused shares from the prior plan. Additionally, the company announced the declaration of a quarterly cash dividend of $0.04 per share, payable on July 15, 2019, to shareholders of record on July 1, 2019. The 8-K also included the results of the company's 2019 Annual Meeting of Stockholders, where directors were elected, executive compensation was approved on an advisory basis, and the appointment of PricewaterhouseCoopers LLP as the independent auditor was ratified. The approval of the new equity incentive plan was a significant agenda item at the meeting.

Key Highlights

  • 1Resignation of Jesse E. Morris, EVP – Finance and President – Infrastructure Solutions, effective May 22, 2019; resignation is not due to any disagreement with the company.
  • 2Stockholder approval of the Quanta Services, Inc. 2019 Omnibus Equity Incentive Plan, which authorizes the grant of various equity awards (stock options, RSUs, PSUs, etc.) and replaces the prior 2011 plan.
  • 3The 2019 Omnibus Plan allows for up to 7,000,000 shares of common stock, plus any shares available under the prior plan that are forfeited or cancelled.
  • 4New forms of award agreements for Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) were approved by the Compensation Committee.
  • 5The Board of Directors declared a quarterly cash dividend of $0.04 per share, payable on July 15, 2019.
  • 6Results from the 2019 Annual Meeting of Stockholders confirmed the election of nine directors, advisory approval of executive compensation, and ratification of PricewaterhouseCoopers LLP as the independent auditor.

Frequently Asked Questions

The 2019 Omnibus Equity Incentive Plan, approved by stockholders, is Quanta Services' primary vehicle for granting equity-based compensation to its employees, directors, officers, advisors, and consultants. It replaces the previous 2011 plan and provides a framework for issuing various equity awards like stock options, RSUs, and PSUs, aimed at aligning employee interests with shareholder value.

Jesse E. Morris resigned from his positions as Executive Vice President – Finance and President – Infrastructure Solutions to pursue another career opportunity. The company explicitly stated that his resignation was not related to any disagreements with Quanta Services regarding its operations, policies, or practices.

The plan allows for awards such as non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock awards, restricted stock units (RSUs), stock bonus awards, and performance compensation awards. RSUs for employees generally vest over three years, while RSUs for non-employee directors vest in full on a designated date. Performance Stock Units (PSUs) have a target number of awards that can range from 0% to 200% of the target, based on achieving specific performance criteria over a three-year period.

Quanta Services announced that its Board of Directors declared a cash dividend of $0.04 per share. This dividend is scheduled to be paid on July 15, 2019, to stockholders of record as of the close of business on July 1, 2019.