Form 4: ONEOK Director Brian L. Derksen Reports Acquisition of Phantom Stock

Director Brian L. Derksen reported the acquisition of phantom stock convertible to ONEOK common stock as part of the company's Equity Incentive Plan and Deferred Compensation Plan.

Summary

• Brian L. Derksen, a director of ONEOK Inc., filed a Form 4 on May 24, 2024, reporting a transaction that occurred on May 22, 2024.
• The transaction involved the acquisition of 2,082 shares of phantom stock, convertible to ONEOK common stock on a 1-for-1 basis.
• These shares were issued as part of the annual cash and/or stock retainer under ONEOK's Equity Incentive Plan.
• The phantom stock is accrued under the Issuer's Deferred Compensation Plan for Non-Employee Directors and is settled in shares of Issuer common stock at the determination date or a designated date upon the reporting person's retirement.
• Following the reported transaction, Derksen beneficially owns 34,331 derivative securities.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The filing reflects standard compensation practices and insider participation in the company's equity plans, which is generally viewed favorably.

Positives

• The acquisition of phantom stock indicates continued participation in ONEOK's Equity Incentive Plan by a director.
• The deferred compensation plan allows for long-term alignment of interests between the director and the company's shareholders.

Future Outlook

The phantom stock will be settled in shares of ONEOK common stock at a determination date or a designated date upon the reporting person's retirement.

Industry Context

Directors receiving stock-based compensation is a common practice in publicly traded companies to align their interests with shareholders and incentivize long-term value creation.

Comparison to Industry Standards

• Equity incentive plans and deferred compensation plans are standard practice among publicly traded companies, including competitors like Kinder Morgan (KMI) and Energy Transfer (ET), to align the interests of directors and executives with those of shareholders.
• The specific terms of these plans, such as vesting schedules and performance metrics, can vary widely, but the underlying goal remains the same: to incentivize long-term value creation.
• The amount of phantom stock granted to Mr. Derksen is likely determined by ONEOK's compensation committee based on factors such as company performance, individual contributions, and industry benchmarks.

Stakeholder Impact

• The acquisition of phantom stock by a director can positively impact shareholders by aligning management's interests with long-term company performance.
• Employees may view the equity incentive plan as a positive aspect of the company's compensation structure.

Key Dates