Form 4: ONEOK Executive Kevin L. Burdick Reports Acquisition of Performance and Restricted Stock Units

ONEOK's Executive Vice President and Chief Enterprise Services Officer, Kevin L. Burdick, reports the acquisition of performance and restricted stock units under the company's Equity Incentive Plan.

Summary

• Kevin L. Burdick, Executive Vice President and Chief Enterprise Services Officer at ONEOK Inc., reported the acquisition of performance stock units (PSU) and restricted stock units (RSU) on February 19, 2025.
• He acquired 14,113 performance units and 6,048 restricted units under ONEOK's Equity Incentive Plan.
• The PSUs will vest on February 19, 2028, based on ONEOK's total shareholder return compared to a peer group, with a potential payout ranging from 0% to 200% of the units awarded.
• The RSUs will also vest on February 19, 2028.
• Both PSU and RSU awards will be credited with dividend equivalents, payable in shares of common stock upon vesting.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing. The sentiment is neutral as it simply reports transactions related to executive compensation.

Positives

• The equity incentive plan aligns executive compensation with shareholder returns, potentially incentivizing value creation.
• The vesting period of three years encourages long-term commitment from the executive.

Risks

• The actual value of the performance units is dependent on ONEOK's future performance relative to its peer group, introducing uncertainty.
• The vesting of the awards is subject to the certification by the Executive Compensation Committee of the applicable performance requirements.

Future Outlook

The future value of the performance units is contingent on ONEOK's performance relative to its peers over the next three years.

Industry Context

Equity incentive plans are a common practice in the energy industry to align executive compensation with company performance and shareholder value. These plans often include performance-based metrics to incentivize specific strategic goals.

Comparison to Industry Standards

• Many companies in the energy sector, such as Kinder Morgan, Enterprise Products Partners, and Williams Companies, utilize similar equity incentive plans with performance-based metrics tied to shareholder return, operational efficiency, or project milestones.
• The vesting periods and performance targets vary across companies, but a three-year vesting period is fairly standard.
• The specific peer group used for comparison is a critical factor in determining the difficulty of achieving the performance targets.

Stakeholder Impact

• The equity awards align executive interests with those of shareholders, potentially encouraging decisions that increase shareholder value.
• Employees may view the equity incentive plan as a positive aspect of the company's compensation structure.

Key Dates