Centennial Resource Development,Inc. (NASDAQ:SRAQU) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02. Departure of Directors or Certain Officers;
Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.
On February8, 2017, the Compensation Committee (the Committee) of
the Board of Directors (the Board) of Centennial Resource
Development,Inc. (the Company) increased the 2017 base salaries,
effective as of February10, 2017, for George Glyphis and Sean
Smith, the Companys Chief Financial Officer and Chief Operating
Officer, respectively.
The following table sets forth the 2017 base salaries for
Messrs.Glyphis and Smith. The 2017 base salary for Mark Papa, the
Companys Chief Executive Officer, did not change.
|
NameofExecutiveOfficer |
|
2017BaseSalary($) (EffectiveFebruary |
|
|
George Glyphis |
400,000 |
||
|
Sean Smith |
435,000 |
In addition, on February8, 2017, the Committee approved the 2016
annual bonuses for Messrs.Papa, Glyphis and Smith, the Companys
named executive officers. The named executive officers other
compensation for 2016 was previously reported by the Company in
the 2016 Summary Compensation Table included in the Companys
prospectus, dated January19, 2017 (the Prospectus), filed with
the Securities and Exchange Commission under Rule424(b)of the
Securities Act of 1933, as amended, relating to the Companys
registration statement on FormS-1, as amended (Registration
No.333-215621). As of the date of the Prospectus, the 2016
bonuses for the named executive officers had not been determined
and, therefore, were not included in the 2016 Summary
Compensation Table. to Item 5.02(f)of Form8-K, below is a revised
2016 Summary Compensation Table, which includes the bonuses paid
to the named executive officers and revised total compensation
figures for 2016:
2016 Summary Compensation Table
|
NameandPrincipalPosition |
|
Year |
|
Salary ($) |
|
Bonus ($)(2) |
|
Option Awards ($)(3) |
|
AllOther Compensation ($)(4) |
|
Total ($) |
|
|
Mark G. Papa, President and Chief Executive Officer(1) |
|
148,485 |
1,200,000 |
5,860,000 |
|
7,208,485 |
|||||||
|
|
|
|
|
|
|
||||||||
|
George S. Glyphis, Chief Financial Officer |
|
293,087 |
385,000 |
1,465,000 |
13,583 |
2,156,670 |
|||||||
|
|
275,000 |
68,750 |
|
25,077 |
368,827 |
||||||||
|
Sean R. Smith, Chief Operating Officer |
|
308,469 |
423,500 |
1,758,000 |
13,708 |
2,503,677 |
(1)Although Mr.Papa has been our Chief Executive Officer and a
director since November2015, he did not receive any compensation
from us until after the closing of the Business Combination.
(2)Amounts for 2016 represent discretionary bonuses awarded on
February8, 2017 in recognition of 2016 performance. We expect
that 25% of amounts disclosed for each named executive officer
will be paid in the form of restricted shares of our Class A
Common Stock that will vest in substantially equal installments
over the three-year period beginning on February7, 2017, subject
to the executives continued service. (3)Amounts in this column
reflect the aggregate grant date fair value of stock options
granted during 2016 computed in accordance with ASC Topic 718,
excluding the effect of estimated forfeitures. All of the stock
options have an exercise price of $14.52, which was the closing
price of our ClassA Common Stock on the date of grant. We
calculated the grant date fair value of the stock options using a
Black-Scholes option pricing model and the following assumptions:
a volatility of 40%, an option term of six years, a risk-free
interest rate of 1.47%, a dividend yield of zero and a grant date
fair value of our ClassA Common Stock of $14.52. (4)Amounts in
this column reflect, for all named executive officers, matching
contributions to the 401(k)Plan made on their behalf for 2016.
See Narrative DisclosuresRetirement Benefits for more information
on matching contributions to the 401(k)Plan.
Centennial Resource Development, Inc. (NASDAQ:SRAQU) Recent Trading Information
Centennial Resource Development, Inc. (NASDAQ:SRAQU) closed its last trading session at with 102,903 shares trading hands.