Summary
This Form 8-K filing by Valero Energy Corporation (VLO) on October 25, 2004, primarily details material definitive agreements related to executive compensation. The company's Board of Directors, on the recommendation of its Compensation Committee, approved long-term incentive awards for its named executive officers, effective October 21, 2004. These awards include stock options, restricted stock, and restricted stock units, all designed to align executive interests with shareholder value through equity-based compensation and performance incentives. Specifically, four named executives received stock options and restricted shares, which vest over a five-year period and have an exercise price tied to the fair market value of the company's stock at the time of grant. The CEO and Chairman of the Board, William E. Greehey, received restricted stock units payable in cash, with the payout tied to the company's stock price performance over a three-year vesting period. These compensation packages underscore the company's strategy to retain and motivate key leadership through equity incentives.
Key Highlights
- 1Valero Energy Corporation (VLO) approved long-term incentive awards for its named executive officers on October 21, 2004.
- 2Awards include stock options and restricted shares granted under the Company's 2001 Executive Stock Incentive Plan (2001 ESIP).
- 3Stock options were granted to four executives with a 10-year term, vesting in one-fifth increments annually, and an exercise price of $42.71.
- 4Restricted shares were issued to the same four executives, also vesting in one-fifth increments annually.
- 5CEO and Chairman William E. Greehey received restricted stock units valued in cash, vesting over three years with payouts tied to the company's stock price on vesting dates.
- 6These awards aim to align executive compensation with the company's stock performance and long-term success.
- 7The filing confirms material definitive agreements related to executive compensation arrangements.