Form 4: ONEOK COO Randy Lentz Awarded 10,331 Restricted Stock Units

ONEOK's Chief Operating Officer, Randy N. Lentz, received an award of 10,331 restricted stock units, vesting in 2028.

Summary

• Randy N. Lentz, Executive Vice President and Chief Operating Officer of ONEOK INC /NEW/ (OKE), was awarded 10,331 Restricted Stock Units (RSUs).
• The RSU award, designated as 'RSU 2025-S', was granted on September 23, 2025.
• These restricted units 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.
• Upon vesting, each restricted unit, including those from dividend equivalents, will be payable with one share of ONEOK's common stock, par value $0.01.

Sentiment

Score: 7

Explanation: The filing indicates a standard executive compensation event, which is generally positive for aligning management incentives with shareholder interests. It does not present any negative surprises or significant risks beyond the inherent nature of equity compensation.

Positives

• The RSU award aligns the interests of a key executive, Randy N. Lentz, with those of shareholders, as the value of his compensation is tied to the company's stock performance.
• The three-year vesting period incentivizes long-term performance and retention of a senior management member.

Negatives

• The future issuance of shares upon vesting will result in a minor dilution of existing shareholders' equity, though this is a standard component of executive compensation plans.

Risks

• The ultimate value of the RSU award to Randy N. Lentz is subject to the future market price of ONEOK's common stock at the time of vesting.
• Should the company's stock price decline significantly before the vesting date, the value of the award will decrease.

Future Outlook

The awarded restricted stock units are scheduled to vest on September 23, 2028, at which point they will convert into shares of ONEOK common stock, including additional units from credited dividend equivalents.

Industry Context

The award of restricted stock units to a senior executive like a Chief Operating Officer is a common practice in the energy and pipeline industry, aligning executive compensation with long-term shareholder value and promoting executive retention. This type of equity compensation is a standard component of total compensation packages for publicly traded companies.

Stakeholder Impact

• Shareholders: The award aligns executive interests with shareholder value creation over the long term. There will be minor future dilution upon vesting.
• Employees: This reflects the company's ongoing executive compensation strategy, potentially influencing broader compensation practices.

Next Steps

• The restricted stock units will continue to accrue dividend equivalents until the vesting date.
• On September 23, 2028, the restricted units and accrued dividend equivalents will vest and be converted into shares of ONEOK common stock.

Key Dates

Keywords

ONEOK, OKE, Restricted Stock Units, RSU, Executive Compensation, Insider Transaction, Randy N. Lentz, Equity Incentive Plan, Corporate Governance