What is the purpose of this restricted stock unit award?

The award is intended to provide consistent leadership and continuity for Mr. Timothy O’Connor, Executive Vice President and Chief Operations Officer, during Xcel Energy's ongoing fleet transformation efforts. This type of award often serves as a retention tool for key executives.

When will Mr. O'Connor receive these restricted stock units and when will they vest?

The restricted stock units will be granted on January 3, 2022. They are scheduled to vest in two parts: 60% on February 28, 2023, and the remaining 40% on August 31, 2023. Vesting is contingent on Mr. O’Connor continuing his service with Xcel Energy on those respective dates.

How is the number of restricted stock units determined?

The exact number of restricted stock units to be awarded to Mr. O’Connor will be calculated based on the closing price of Xcel Energy's common stock on January 3, 2022, the date the award is officially granted.

Does this award indicate any changes in Xcel Energy's operational strategy or leadership?

The filing states the award is to "provide consistent leadership and continuity as we continue to meet our fleet transformation goals." This suggests a focus on retaining key personnel to execute the company's existing strategic objectives, particularly concerning the transition of its energy fleet.

XEL/XELLL 8-K: Leadership Changes

Summary

Xcel Energy Inc. (XEL) filed an 8-K on December 10, 2021, primarily detailing a significant compensation award to a key executive. On December 7, 2021, the Governance, Compensation and Nominating Committee approved a $1,000,000 restricted stock unit (RSU) award for Timothy O’Connor, Executive Vice President and Chief Operations Officer. This award, granted under the company's 2015 Omnibus Incentive Plan, is intended to ensure consistent leadership and continuity as Xcel Energy pursues its fleet transformation goals.

Key Highlights

1Timothy O’Connor, EVP and Chief Operations Officer, received a $1,000,000 restricted stock unit (RSU) award.
2The RSU award is designed to incentivize leadership consistency and operational continuity.
3The award is tied to Xcel Energy's ongoing fleet transformation objectives.
4The RSUs will vest in two tranches: 60% on February 28, 2023, and 40% on August 31, 2023, contingent upon continued service.
5The number of units granted will be determined by Xcel Energy's common stock closing price on January 3, 2022.
6The award agreement is filed as Exhibit 10.01 to the 8-K.

XCEL ENERGY INC 8-K Report, Executive Changes (Dec 10, 2021)

Summary

Key Highlights

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