Summary
Valero Energy Corporation (VLO) has filed an 8-K report detailing compensatory arrangements for its Executive Vice President and Chief Operating Officer, R. Lane Riggs. The Compensation Committee approved a significant long-term incentive compensation package valued at $5 million, structured as three separate grants of restricted shares. These grants vest over three and two-year periods, with a portion of the after-tax value of vesting shares eligible for cash payout. In addition to the long-term incentives, the report outlines Mr. Riggs's 2020 total pay targets. This includes an annual base salary of $940,000, a target bonus percentage of 110% of base salary, and a substantial long-term incentive target of 428% of his base salary. These arrangements are designed to retain key executive talent and align executive compensation with the company's performance and shareholder value.
Key Highlights
- 1Valero approved a $5 million long-term incentive compensation package for EVP & COO R. Lane Riggs.
- 2The incentive package consists of three restricted share grants, with specific values and vesting schedules.
- 3Grant 1 ($1 million) vests ratably over three years starting December 18, 2019.
- 4Grant 2 ($2 million) vests ratably over three years starting February 26, 2020.
- 5Grant 3 ($2 million) vests ratably over two years starting February 23, 2021.
- 6Mr. Riggs has the option to receive up to 50% of the after-tax value of vesting shares in cash.
- 72020 total pay targets for Mr. Riggs include a $940,000 base salary, 110% target bonus, and 428% long-term incentive target.