8-KLeadership ChangesExhibits & Filings

Targa Resources Corp. 8-K Report, Executive Changes (Jan 22, 2016)

Filed January 22, 2016For Securities:TRGP

Summary

Targa Resources Corp. (TRGP) filed an 8-K on January 22, 2016, to report the approval of its 2016 Annual Incentive Compensation Plan by its Compensation Committee. This plan is designed to be a discretionary cash bonus program for all employees, including executive officers, intended to reward contributions to the company's business priorities and aid in employee retention and motivation. The 2016 plan outlines eight key business priorities that will form the basis for determining the bonus pool funding. These priorities encompass operational execution, safety, compliance, talent acquisition and retention, cost control, project execution, growth opportunities, and commercial/financial risk management. The bonus pool is tied to the achievement of these objectives, with the Compensation Committee having final discretion over the total pool amount and individual executive awards.

Key Highlights

  • 1Approval of the 2016 Annual Incentive Compensation Plan (Bonus Plan) by Targa Resources Corp. on January 19, 2016.
  • 2The Bonus Plan is a discretionary annual cash bonus program available to all employees, including executive officers.
  • 3The primary purpose is to reward contributions to company business priorities and to retain/motivate employees.
  • 4Bonus pool funding is directly linked to the achievement of eight specific key business priorities for 2016.
  • 5Key priorities include operational execution, safety, compliance, talent management, cost control, project completion, growth initiatives, and financial risk management.
  • 6Individual target bonus opportunities range from 6% to 100% of eligible earnings (base salary and overtime).
  • 7The Compensation Committee retains full discretion in determining the total bonus pool and individual awards, based on recommendations from the CEO and management.

Frequently Asked Questions

The primary purpose of the plan is to reward employees for their contributions towards Targa Resources' business priorities for 2016 and to help the company attract and retain key talent by providing motivation through a discretionary cash bonus program.

The bonus pool funding is determined by Targa Resources' achievement of eight specific business priorities set by the Compensation Committee for 2016. These priorities cover operational, financial, safety, compliance, talent, project execution, growth, and risk management aspects of the business.

The Compensation Committee has significant discretion. They determine the total amount of cash for the bonus pool based on the CEO's recommendation and overall performance against objectives, and they also have the sole discretion to determine the cash bonus award for each executive officer. Executive officers then determine allocations for other employees.

No, the plan is discretionary. While it's available to all employees, the actual funding of the bonus pool and the specific awards are dependent on the company's achievement of its 2016 business priorities and the Compensation Committee's determination. The CEO's recommendation can range from 0 to 2x the aggregate target bonus opportunities.