Form 4: ONEOK CFO Awarded 34,435 Restricted Stock Units

ONEOK's Chief Financial Officer, Walter S. Hulse III, received an award of 34,435 restricted stock units under the company's equity incentive plan.

Summary

• Walter S. Hulse III, Chief Financial Officer, Treasurer, and Executive Vice President, Investor Relations and Corporate Development of ONEOK INC /NEW/ (OKE), was granted 34,435 Restricted Stock Units (RSUs).
• The RSUs were awarded under the Issuer's Equity Incentive Plan on September 23, 2025.
• The vesting schedule for the award is as follows: 20% will vest on September 23, 2026; 30% will vest on September 23, 2027; and 50% will vest on September 23, 2028.
• During the vesting period, the award will be credited with dividend equivalents, which will be paid out in shares of common stock when the underlying units vest and are issued.
• Each vested restricted unit, including those from dividend equivalents, will be payable with one share of ONEOK's common stock.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. While a routine compensation event, it signifies continued executive alignment with shareholder interests and is a standard, healthy practice for a public company. There are no negative surprises or adverse financial implications beyond minor, expected dilution.

Positives

• The grant of Restricted Stock Units aligns the interests of a key executive, Walter S. Hulse III, with those of shareholders, as the value of his compensation is tied to the company's stock performance.
• Equity incentive plans are a standard practice for executive compensation, promoting long-term commitment and performance.

Negatives

• The award does not provide immediate cash compensation to the executive, as it is subject to a multi-year vesting schedule.
• The future issuance of shares upon vesting could result in minor dilution for existing shareholders, though this is a common aspect of equity compensation plans.

Risks

• The executive's compensation from these RSUs is subject to the future performance of ONEOK's stock price.
• Forfeiture of the unvested RSUs would occur if the executive's employment terminates before the vesting dates.

Future Outlook

The future outlook involves the scheduled vesting of 34,435 Restricted Stock Units over a three-year period, with shares of common stock to be issued upon each vesting date. Dividend equivalents will also accrue and be paid in shares upon vesting.

Industry Context

The grant of Restricted Stock Units to a senior executive is a common and widely accepted practice in the energy and pipeline industry, as well as across most publicly traded sectors. It serves as a key component of executive compensation packages, designed to attract, retain, and motivate talent by linking their long-term financial interests to the company's performance and shareholder value creation.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) with a multi-year vesting schedule is a standard component of executive compensation across the energy sector, comparable to practices at companies like Kinder Morgan (KMI), Enterprise Products Partners (EPD), and Williams Companies (WMB).
• The structure, including dividend equivalents, is typical for long-term incentive plans designed to align executive interests with shareholder returns over time.
• The specific number of units awarded would typically be benchmarked against peer companies of similar size and market capitalization for a Chief Financial Officer role, though the filing does not provide comparative data.

Stakeholder Impact

• Shareholders: Potential minor dilution upon vesting of shares, but also increased alignment of executive interests with long-term shareholder value.
• Employees: The equity incentive plan provides a framework for executive compensation, which can influence broader compensation strategies.

Next Steps

• The vesting of 20% of the RSUs on September 23, 2026.
• The vesting of 30% of the RSUs on September 23, 2027.
• The vesting of 50% of the RSUs on September 23, 2028.
• Issuance of ONEOK common stock to Walter S. Hulse III upon each vesting date, including shares for accrued dividend equivalents.

Key Dates

Keywords

ONEOK, OKE, Restricted Stock Units, RSU, Equity Incentive Plan, Executive Compensation, Insider Transaction, Form 4, Walter S. Hulse III