Summary
This 8-K filing from Valero Energy Corp. (VLO) dated November 2, 2011, primarily details compensation arrangements for its named executive officers. The company's board of directors approved grants of stock options, restricted shares, and performance shares under the 2011 Omnibus Stock Incentive Plan on October 28, 2011. These grants are intended to incentivize and retain key leadership. The stock options vest over three years and expire after ten years. Restricted shares also vest over three years, with a portion eligible for accelerated vesting if the stock price reaches $40.00 for five consecutive trading days. Performance shares have a three-year vesting schedule tied to company performance, with payouts ranging from zero to 200% of the vested amount.
Key Highlights
- 1Valero Energy approved stock grants for named executive officers on October 28, 2011, under the 2011 Omnibus Stock Incentive Plan.
- 2Grants include stock options, restricted shares, and performance shares.
- 3Stock options vest in one-third increments annually starting October 28, 2012, and expire 10 years from the grant date.
- 4Restricted shares vest equally over three years, commencing October 28, 2012.
- 5A portion of restricted shares can vest automatically if Valero's stock price closes at or above $40.00 for five consecutive trading days.
- 6Performance shares vest in three annual increments starting January 2013, with payouts dependent on company performance (0% to 200%).
- 7Specific grant details for top executives, including the CEO, are provided.