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

Chord Energy Corp's EVP and COO, Darrin J. Henke, received restricted stock units and performance share units as part of his annual compensation package.

Summary

• Darrin J. Henke, EVP and COO of Chord Energy Corp, received 7,673 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.
• He also received 2,877 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 payout exceeding the target performance units will be settled in cash rather than common stock.
• An earlier filing on February 22, 2024, incorrectly stated the number of target performance units as 3,667, which has now been corrected to 1,834.

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 significant negative aspects or surprises.

Positives

• The grant of restricted stock units and performance share units aligns executive compensation with company performance and shareholder value.
• The performance share units provide a strong incentive for the executive to drive total shareholder return.

Risks

• The value of the performance share units is contingent on the company's total shareholder return, which is subject to market fluctuations and other risks.
• The actual payout of performance share 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.

Management Comments

• The restricted stock units and performance share units were granted as part of the executive's ordinary course annual compensation package pursuant to the Issuer's Long Term Incentive Plan (LTIP).

Industry Context

The granting of stock and performance-based compensation is a common practice in the energy industry to align executive interests with shareholder value and company performance.

Comparison to Industry Standards

• Many companies in the oil and gas sector use a mix of restricted stock and performance-based equity awards to incentivize their executives.
• The three-year performance period for the performance share units is a typical timeframe for such awards.
• The potential payout of up to 300% of target units is within the range of what is seen in similar companies.

Stakeholder Impact

• Shareholders may view the compensation package 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.

Key Dates

Keywords

Chord Energy Corp, executive compensation, restricted stock units, performance share units, total shareholder return, Darrin J. Henke, LTIP