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

Richard N. Robuck, EVP, CFO and Treasurer of Chord Energy Corp, was granted restricted stock units and performance share units as part of his annual compensation package.

Summary

• Richard N. Robuck, an executive at Chord Energy Corp, received 7,353 restricted stock units and 2,757 performance share units as part of his annual compensation.
• The restricted stock units represent a right to receive one share of Chord Energy's common stock each.
• The performance share units can 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.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which is generally viewed positively as it aligns management interests with shareholders. 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 provide an incentive for the executive to drive 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 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 measurement period beginning 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 a mix of restricted stock and performance-based equity awards as part of their executive compensation packages.
• The specific metrics and vesting periods for performance-based awards vary, but total shareholder return is a common metric.
• The range of 0-300% payout for performance units is within the typical range for similar companies.

Stakeholder Impact

• Shareholders may view the equity grants positively as they align executive compensation with company performance.
• Employees may see this as a standard practice for executive compensation.

Key Dates

Keywords

Chord Energy Corp, executive compensation, restricted stock units, performance share units, total shareholder return, equity compensation, incentive plan