Form 4: Chord Energy Corp EVP and CFO Richard N. Robuck Reports Acquisition of Restricted Stock Units and Performance Share Units

Richard N. Robuck, EVP and CFO of Chord Energy Corp, reports the acquisition of 4,268 Restricted Stock Units and 1,601 Performance Share Units as part of his annual compensation package.

Summary

• Richard N. Robuck, the EVP and CFO of Chord Energy Corp, filed a Form 4 detailing changes in his beneficial ownership of the company's securities.
• On March 4, 2024, Robuck acquired 4,268 Restricted Stock Units (RSUs) as part of his annual compensation package under the company's 2020 Long Term Incentive Plan (LTIP).
• Each RSU represents a contingent right to receive one share of Chord Energy Corp's common stock.
• Robuck also acquired 1,601 target Performance Share Units (PSUs) as part of his annual compensation package under the 2020 LTIP.
• Each PSU represents a contingent right to receive between zero and 300% of the target units, depending on the company's total shareholder return (TSR) over a three-year period starting January 1, 2024.
• Any earned performance units exceeding the target will be settled in cash.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects standard executive compensation practices and aligns management's interests with shareholders through equity ownership and performance-based incentives.

Positives

• The acquisition of restricted stock units and performance share units aligns the executive's interests with those of the shareholders.
• The performance-based vesting of the PSUs incentivizes the executive to improve the company's total shareholder return (TSR).

Future Outlook

The number of shares ultimately received from the Performance Share Units will depend on the company's total shareholder return (TSR) over the three-year measurement period.

Industry Context

Form 4 filings are a routine part of executive compensation and provide transparency into the alignment of management's interests with shareholders. The use of performance-based equity compensation is a common practice in the energy industry to incentivize executives to achieve specific financial and operational goals.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies, particularly in the energy sector.
• Companies like ExxonMobil, Chevron, and ConocoPhillips also utilize long-term incentive plans that include performance-based equity awards.
• The specific metrics used for vesting, such as TSR, and the vesting schedules vary from company to company.

Stakeholder Impact

• Shareholders: The grants align executive compensation with company performance, potentially benefiting shareholders through increased value.
• Employees: The grants are part of a broader compensation plan, which can impact employee morale and retention.
• Management: The grants provide incentives for management to achieve company goals and increase shareholder value.

Key Dates