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

Shannon Browning Kinney, an executive at Chord Energy Corp, received restricted stock units and performance share units as part of her annual compensation package.

Summary

• Shannon Browning Kinney, EVP, CAO, GC & Corp Secretary at Chord Energy Corp, was granted 5,435 restricted stock units and 2,037 performance share units on January 22, 2025.
• The restricted stock units represent a contingent right to receive one share of Chord Energy's common stock each.
• The performance share units represent a contingent right to receive between zero and 300% of the target units in common stock, 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.

Sentiment

Score: 7

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

Positives

• The grant of restricted stock units and performance share units aligns executive compensation with company performance and shareholder value.
• The performance share units incentivize long-term value creation through 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 company performance.
• The actual number of shares received from performance units could be significantly lower than the target if the company's performance is poor.

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 equity-based compensation is common in the energy industry to align executive interests with shareholder value and long-term company performance.

Comparison to Industry Standards

• Many companies in the oil and gas sector, such as EOG Resources and Pioneer Natural Resources, use similar long-term incentive plans that include restricted stock and performance-based equity awards.
• These plans are designed to motivate executives to achieve specific financial and operational goals, often tied to metrics like total shareholder return, production growth, and cost efficiency.
• The vesting periods and performance metrics used by Chord Energy are consistent with industry norms, typically spanning three to five years and focusing on shareholder value creation.

Stakeholder Impact

• Shareholders may view the equity-based compensation positively as it aligns executive interests with company performance.
• Employees may see this as a positive sign of the company's commitment to its leadership team.

Key Dates

Keywords

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