Form 4: ONEOK Executive Charles M. Kelley Reports Share Acquisition Under Employee Stock Award Program

Charles M. Kelley, a Senior Vice President at ONEOK, reported acquiring one share of common stock through the company's Employee Stock Award Program (ESAP).

Summary

• Charles M. Kelley, a Senior Vice President at ONEOK, filed a Form 4 detailing changes in beneficial ownership.
• The report indicates that Kelley acquired one share of ONEOK common stock on November 7, 2024, at a price of $104.14 per share, through the company's Employee Stock Award Program (ESAP).
• Following the transaction, Kelley directly owns 125,714.5748 shares of ONEOK common stock.
• He also indirectly owns 16,543.58 shares through a 401(k).
• The ESAP program is currently paused as the allocated shares have been fully awarded, with ONEOK achieving the $103 milestone on Nov. 7, 2024.
• The program is expected to resume after the 2025 annual shareholder meeting, pending approval for additional shares.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects a routine transaction under an existing employee program. The pause in the ESAP program is a minor concern, but the expectation of its resumption tempers any negative sentiment.

Positives

• The acquisition of shares through the ESAP indicates a continued investment by the executive in the company's stock.
• The ESAP program incentivizes employees and aligns their interests with those of the shareholders.

Negatives

• The ESAP program is currently paused, which may temporarily limit employee stock awards.

Risks

• The ESAP program's resumption is contingent on shareholder approval at the 2025 annual meeting.
• Failure to obtain approval for additional shares could impact employee compensation and morale.

Future Outlook

The ESAP program is expected to resume after the 2025 annual shareholder meeting, pending approval for additional shares.

Industry Context

Form 4 filings are standard practice and provide transparency regarding insider transactions, which are closely monitored by investors and regulators.

Comparison to Industry Standards

• Executive compensation packages often include stock awards to align management's interests with shareholder value, a common practice among publicly traded companies like ONEOK.
• Companies such as Enterprise Products Partners and Kinder Morgan also utilize similar stock award programs as part of their compensation strategy.

Stakeholder Impact

• Shareholders: The ESAP program aligns employee interests with shareholder value.
• Employees: The pause in the ESAP program may temporarily affect employee compensation.

Next Steps

• Shareholder vote on the ESAP program at the 2025 annual meeting.
• Resumption of the ESAP program pending shareholder approval.

Key Dates