8-KLeadership ChangesExhibits & Filings

QUANTA SERVICES, INC. 8-K Report, Executive Changes (Apr 1, 2020)

Filed April 1, 2020For Securities:PWR

Summary

Quanta Services, Inc. (PWR) filed an 8-K on April 1, 2020, reporting the adoption of its 2020 Incentive Plans by the Compensation Committee. These plans, effective March 26, 2020, outline the framework for cash and equity-based incentive compensation for various employee groups, including executive officers. The primary focus is on aligning executive and employee compensation with key performance indicators crucial for the company's long-term success and shareholder value. The 2020 Incentive Plans establish specific performance metrics for both annual and long-term awards. Annual incentives will be measured against EBITDA, EBITDA margin, and safety targets for 2020. For longer-term performance over the 2020-2022 period, metrics include return on invested capital, total shareholder return, capital efficiency, and operational performance. These performance-based awards are intended to drive accountability and reward employees for achieving strategic financial and operational goals, with equity awards being granted under the existing 2019 Omnibus Equity Incentive Plan.

Key Highlights

  • 1Adoption of 2020 Annual Incentive Plan, 2020 Long-Term Incentive Plan for senior leadership, and 2020 Discretionary Plan for all employees.
  • 2Executive officers and other employees are eligible for incentive compensation payable in cash, restricted stock units (RSUs), and/or performance stock units (PSUs).
  • 3Annual performance metrics for 2020 include EBITDA, EBITDA margin, and safety.
  • 4Long-term incentive performance metrics (2020-2022) encompass return on invested capital, total shareholder return, capital efficiency, and operational performance.
  • 5All equity-based awards will be granted under the Quanta Services, Inc. 2019 Omnibus Equity Incentive Plan.
  • 6The Compensation Committee established specific target incentive amounts for executive officers.
  • 7Detailed plan documents and award agreements are filed as exhibits to the 8-K.

Frequently Asked Questions

Quanta Services adopted three main incentive plans: the 2020 Annual Incentive Plan for corporate employees, the 2020 Long-Term Incentive Plan for senior leadership, and the 2020 Discretionary Plan for all employees. These are collectively referred to as the 'Incentive Plan'.

Compensation will be tied to specific performance metrics. For annual incentives in 2020, targets include EBITDA, EBITDA margin, and safety. For long-term incentives covering the period from January 1, 2020, to December 31, 2022, metrics include return on invested capital, total shareholder return, capital efficiency, and certain operational performance metrics.

While the 2020 Incentive Plans outline the structure and performance metrics for compensation, all equity-based awards granted under these plans will be made pursuant to Quanta Services, Inc.'s 2019 Omnibus Equity Incentive Plan and related award agreements.

The plans cover various employee groups. The annual and discretionary plans are for all corporate employees, while the long-term incentive plan is specifically for senior leadership. Executive officers are also eligible to receive incentive compensation, with specific target amounts established for them.