Form 4: ONEOK Executive Awarded 13,774 Restricted Stock Units

ONEOK's Executive Vice President and Chief Enterprise Services Officer, Kevin L. Burdick, received an award of 13,774 restricted stock units as part of the company's equity incentive plan.

Summary

• Kevin L. Burdick, Executive Vice President and Chief Enterprise Services Officer of ONEOK Inc. (OKE), was awarded 13,774 Restricted Stock Units (RSUs).
• The award was made on September 23, 2025, under the Issuer's Equity Incentive Plan.
• The RSUs will vest in three tranches: 20% on September 23, 2026, 30% on September 23, 2027, and 50% on September 23, 2028.
• Dividend equivalents will be credited during the vesting period and paid out in shares of common stock when the underlying units vest.
• This transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 6

Explanation: Slightly positive, as it indicates executive retention and alignment with shareholder interests, which are generally viewed favorably. It's a routine compensation event, so not highly impactful on its own.

Positives

• Aligns executive interests with shareholder value through equity ownership.
• Serves as a retention mechanism for a key executive over a multi-year vesting period.
• The use of a Rule 10b5-1(c) plan indicates a pre-planned and transparent compensation strategy.

Negatives

• Potential for minor dilution of existing shares upon vesting, though typical for equity compensation.

Future Outlook

The award establishes a future vesting schedule for a significant portion of executive compensation, aligning the executive's long-term incentives with the company's performance through September 2028.

Industry Context

Equity-based compensation, particularly through Restricted Stock Units, is a standard practice across the energy and infrastructure sectors to attract, retain, and incentivize key executives. This award is consistent with typical executive compensation structures aimed at aligning management interests with long-term shareholder value.

Comparison to Industry Standards

• The use of multi-year vesting schedules for RSUs is a common practice among S&P 500 companies, including peers in the midstream energy sector like Kinder Morgan (KMI) or Enterprise Products Partners (EPD), to ensure executive retention and long-term performance alignment.
• The inclusion of dividend equivalents, payable in shares upon vesting, is also a standard feature in many RSU plans, reflecting the company's commitment to providing executives with the full economic benefit of share ownership during the vesting period, similar to practices at companies such as Williams Companies (WMB).

Stakeholder Impact

• **Shareholders:** Potential minor dilution upon vesting of shares, but also enhanced alignment of executive incentives with long-term shareholder value creation.
• **Employees:** Reinforces the company's commitment to competitive executive compensation, potentially influencing broader compensation strategies.

Next Steps

• Vesting of 20% of the RSU award on September 23, 2026.
• Vesting of 30% of the RSU award on September 23, 2027.
• Vesting of 50% of the RSU award on September 23, 2028.
• Issuance of common stock shares corresponding to vested RSUs and credited dividend equivalents on each vesting date.

Key Dates

Keywords

ONEOK, OKE, Restricted Stock Units, RSU, Equity Incentive Plan, Executive Compensation, Insider Transaction, Form 4, Kevin L. Burdick, Corporate Governance