ONEOK’s Board of Directors recently finalized the annual salary of the company’s newly-named President and Chief Executive Officer, Pierce H. Norton II.
A filing with the Securities Exchange Commission revealed Norton will be paid $835,000 a year as of June 28, the effective date he assumes the position according to the filing of the 8-K form with the SEC.
The Board of Directors finalized and approved the terms of Norton’s contract on June 22.
Under the contract, Norton will also be eligible for a short-term incentive award under ONEOK’s annual officer incentive plan with a target of 125% of his base salary.
He will receive a prorated payout of this award for 2021 based on his date of hire unless his previous employer does not provide a prorated payout for 2021 under its short-term incentive plan, in which case Mr. Norton will receive the full payout of this award for 2021 from ONEOK without proration.
The SEC statement showed, “On his date of hire, Norton will also be granted a long-term incentive award under the Company’s Equity Incentive Plan (the “EIP”) of the number of units equal to $3,750,000 divided by the closing price of the Company’s common stock on June 28, 2021 (the “Closing Price”), consisting of 20% restricted stock units vesting on June 28, 2024, and 80% performance stock units, which are subject to the achievement of the Company’s performance goals over the performance period ending February 17, 2024.”
The form also stated:
The amount of the long-term incentive award was not prorated for Mr. Norton’s start date, in part to compensate him for the forfeiture of his 2021 long-term incentive award from his previous employer. Mr. Norton will be given credit for his prior service with the Company, making him eligible to receive a prorated portion of his short-term incentive awards under the AOIP and long-term incentive awards under the EIP in the event of retirement prior to completion of the applicable service or performance period. In addition, in consideration of Mr. Norton’s forfeiture of certain stock awards in connection with his departure from his previous employer, he will also receive a long-term incentive award of restricted stock units, which would not be eligible for a prorated payout upon retirement prior to completion of the applicable service period, equal to $1,321,057 divided by the Closing Price, half of which vest on June 28, 2023, and half of which vest on June 28, 2024.
Click here to view SEC filing.
