Form 4: Chord Energy Corp CEO Daniel Brown Receives Stock and Performance Units as Part of Annual Compensation

Chord Energy Corp's CEO, Daniel Brown, was granted 15,298 restricted stock units and 7,764 performance share units as part of his annual compensation package.

Summary

• Daniel Brown, the President and CEO of Chord Energy Corp, received 15,298 restricted stock units as part of his annual compensation.
• These restricted stock units represent a contingent right to receive one share of Chord Energy's common stock each.
• Mr. Brown also received 7,764 target performance share units, which could result in a payout of between zero and 300% of the target units depending on the company's total shareholder return over a three-year period starting January 1, 2025.
• Any earned performance units exceeding the target will be settled in cash rather than common stock.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which are generally viewed positively as they align management's interests with shareholders. There are no indications of negative sentiment.

Positives

• The grant of restricted stock units and performance share units aligns the CEO's interests with those of the shareholders.
• The performance-based compensation structure incentivizes the CEO to improve the company's total shareholder return.

Risks

• The value of the performance share units is dependent on the company's total shareholder return, which is subject to market fluctuations and other risks.
• The potential for cash settlement of excess performance units could impact the company's cash flow.

Future Outlook

The performance share units will vest based on the company's total shareholder return over a three-year period starting January 1, 2025.

Industry Context

This type of compensation package is common for executives in publicly traded companies, aligning their interests with those of shareholders and incentivizing performance.

Comparison to Industry Standards

• The use of restricted stock units and performance-based equity awards is a standard practice in executive compensation across the energy sector.
• Companies like EOG Resources and Pioneer Natural Resources also utilize similar long-term incentive plans to motivate their executives.
• The specific metrics and vesting schedules may vary, but the overall structure is consistent with industry norms.

Stakeholder Impact

• Shareholders may view the performance-based compensation positively as it incentivizes management to increase shareholder value.
• Employees may see this as a positive sign of the company's commitment to its leadership.

Key Dates

Keywords

Chord Energy Corp, Daniel Brown, restricted stock units, performance share units, executive compensation, total shareholder return, LTIP