What is the main purpose of the 2019 Annual Incentive Compensation Plan?

The main purpose of the plan is to motivate and retain Targa Resources Corp. employees, including executive officers, by providing discretionary cash bonuses tied to the achievement of the company's strategic, financial, and operational priorities for 2019.

How is the bonus pool for the 2019 plan determined?

The bonus pool is discretionary. The CEO recommends the total bonus pool amount based on overall company performance against the established 2019 business priorities (generally between 0-2x aggregate target bonus opportunities). The Compensation Committee then has the final discretion to determine the total amount to be allocated to the bonus pool.

What are some of the key business priorities for Targa Resources in 2019 that could impact employee bonuses?

Key priorities include executing the 2019 business plan and public guidance, maintaining a strong safety record, ensuring environmental and regulatory compliance, attracting and retaining talent, controlling operating, capital, and G&A costs, executing major capital projects on time and budget, pursuing growth opportunities (like new build-outs and asset acquisitions), and achieving maximum commercial and financial value while managing risks.

Do executive officers have a guaranteed bonus under this plan?

No, the plan is discretionary. While executive officers are eligible, the Compensation Committee has the sole discretion to determine the amount of the cash bonus award for each executive officer, based on performance and the achievement of business priorities.

TRGP 8-K: Leadership Changes

Summary

Targa Resources Corp. (TRGP) filed an 8-K on January 22, 2019, primarily to announce the approval of its 2019 Annual Incentive Compensation Plan (Bonus Plan) by its Compensation Committee. This discretionary cash bonus plan is designed to incentivize and retain employees, including executive officers, by tying a portion of their compensation to the achievement of the company's strategic, financial, and operational objectives for the upcoming year. The Bonus Plan outlines eight key business priorities for 2019, ranging from executing the business plan and safety to cost control, project execution, growth opportunities, and risk management. The funding of the bonus pool is discretionary, based on the Committee's assessment of performance against these objectives, with the CEO recommending the total pool amount (typically 0-2x aggregate target bonuses) and the Committee making the final determination. This plan underscores Targa's focus on performance-driven compensation and alignment with key corporate goals for 2019.

Key Highlights

1Targa Resources Corp. approved its 2019 Annual Incentive Compensation Plan (Bonus Plan) on January 17, 2019.
2The Bonus Plan is a discretionary annual cash bonus plan for all employees, including executive officers.
3The plan's purpose is to reward contributions to business priorities and aid in employee retention and motivation.
4Bonus pool funding is based on the company's achievement of eight key business priorities for 2019.
5Key priorities include business plan execution, safety, compliance, talent retention, cost control, project execution, growth opportunities, and commercial/financial value.
6The total bonus pool is generally funded between 0-2x aggregate target bonus opportunities, based on CEO recommendation and Committee discretion.
7The Compensation Committee has sole discretion in determining bonus awards for executive officers.

Targa Resources Corp. 8-K Report, Executive Changes (Jan 22, 2019)

Summary

Key Highlights

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