EQT CORPORATION (NYSE:EQT) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
ME Staff 8-k
EQT CORPORATION (NYSE:EQT) 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.
Appointment of Certain Officers
On July 10, 2019, the Board of Directors (the Board) of EQT Corporation (the Company) appointed Toby Z. Rice as the President and Chief Executive Officer of the Company. Mr. Rice will receive an annual salary of $1.00 for the first 12 months of his employment as President and Chief Executive Officer. The Board will determine the other terms and conditions of Mr. Rices employment at a later date.
Mr. Rice, age 37, has served as a Partner at Rice Investment Group, a multi-strategy fund investing in all verticals of the oil and gas sector (Rice Investment), since May 2018. Prior to that, Mr. Rice served as President, Chief Operating Officer and a member of the Board of Directors of Rice Energy Inc. (Rice Energy) from October 2013 until its acquisition by the Company in November 2017. Mr. Rice had served in a number of positions with Rice Energy, its affiliates and predecessor entities since February 2007, including President and Chief Executive Officer of a predecessor entity from February 2008 through September 2013. Mr. Rice is the brother of Daniel J. Rice IV, a member of the Board.
Also on July 10, 2019, the Board appointed William E. Jordan as the Executive Vice President and General Counsel of the Company. Mr. Jordan, age 39, has served as an advisor to Rice Investment since May 2018. Prior to that, Mr. Jordan served as the Senior Vice President, General Counsel and Corporate Secretary of Rice Energy from February 2015 until November 2017 and as the Vice President, General Counsel and Corporate Secretary of Rice Energy from January 2014 until February 2015. Mr. Jordan also served as the Senior Vice President, General Counsel and Corporate Secretary of Rice Midstream Partners LP until November 2017. From September 2005 through December 2013, Mr. Jordan practiced corporate law at Vinson & Elkins L.L.P., representing public and private companies in capital markets offerings and mergers and acquisitions, primarily in the oil and natural gas industry. He is a graduate of Davidson College with a BA in Mathematics and a graduate of the Duke University School of Law with a JD degree.
Departure of Certain Officers
On July 10, 2019, in connection with the appointment of Mr. Rice as the Companys President and Chief Executive Officer, the Board took action to terminate the employment of Robert McNally as the President and Chief Executive Officer of the Company. Also on July 10, 2019, in connection with the appointment of Mr. Jordan as the Companys Executive Vice President and General Counsel, the Board took action to terminate the employment of Jonathan Lushko as the General Counsel and Senior Vice President, Government Affairs of the Company.
As previously disclosed, including in Exhibits 10.13(a)-(b) and 10.17 to the Companys Annual Report on Form 10-K filed on February 14, 2019, both Mr. McNally and Mr. Lushko are party to Confidentiality, Non-Solicitation and Non-Competition Agreements (the Restrictive Covenant Agreements) that provide Messrs. McNally and Lushko with the opportunity to receive certain payments and benefits following a termination of employment by the Company. Subject to Messrs. McNallys and Lushkos satisfaction of the terms and conditions contained within the Restrictive Covenant Agreements, including their continued compliance with restrictive covenants in favor of the Company and their execution of a release of claims in a form acceptable to the Company, Messrs. McNally and Lushko will receive the severance payments, equity acceleration and benefits set forth in the Restrictive Covenant Agreements in the event of a termination by the Company without Cause (as defined therein).
2019 Long-Term Incentive Plan
At the Companys 2019 annual meeting of shareholders held on July 10, 2019 (the Annual Meeting), shareholders of the Company approved the Companys 2019 Long-Term Incentive Plan (the 2019 LTIP). The 2019 LTIP is a long-term incentive plan to which awards may be granted to employees, including executive officers, and non-employee directors of the Company and its affiliates, including options, stock appreciation rights, restricted stock, restricted stock units, performance awards, and other awards. The 2019 LTIP
was adopted principally to serve as a successor plan to the Companys 2014 Long-Term Incentive Plan, and to increase the number of shares of Company common stock reserved for equity-based awards by 16,000,000 shares. No awards may be granted under the 2019 LTIP after EQTs annual meeting of shareholders in 2029. As of the date hereof, there have been no awards made under the 2019 LTIP. It is not possible to determine specific amounts and types of awards that may be granted to eligible participants under the 2019 LTIP subsequent to the Annual Meeting because the grant and payment of such awards will be subject to the discretion of the Management Development and Compensation Committee of the Board. The summary of the 2019 LTIP is qualified in its entirety by reference to the full text of the 2019 LTIP, which is filed as Appendix E to the Companys definitive proxy statement filed with the Securities and Exchange Commission on May 22, 2019 (the Companys Proxy Statement) and incorporated herein by reference.
Item 5.07. Submission of Matters to a Vote of Security Holders.
At the Annual Meeting held on July 10, 2019, the Companys shareholders considered the following four proposals, each of which is described in more detail in the Companys Proxy Statement:
1. Proposal 1: to elect 12 individuals to the Board to serve a one-year term expiring at the 2020 annual meeting of shareholders;
2. Proposal 2: to approve a non-binding resolution regarding the compensation of the Companys named executive officers for 2018;
3. Proposal 3: to approve the 2019 LTIP; and
4. Proposal 4: to ratify the appointment of Ernst & Young LLP as the Companys independent registered public accounting firm for 2019.
On July 10, 2019, the independent inspector of elections for the Annual Meeting delivered its certified tabulation of voting results for each of the matters submitted to a vote at the Annual Meeting. The results were as set forth below.
Proposal 1: Election of 12 Directors
As disclosed in the Companys Proxy Statement, in total, there were 18 director nominees, seven of whom were nominated by Toby Z. Rice and the other participants named in the proxy statement filed on May 20, 2019 (the Rice Group, and the Rice Groups nominees, the Rice Group Nominees), including Daniel J. Rice IV, who was nominated by both the Board and the Rice Group, and five of whom were nominated by the Board and recommended by the Rice Group (such nominees, the Rice Group Supported Company Nominees). The Rice Group Nominees and the Rice Group Supported Company Nominees were the 12 director nominees who received the highest number of FOR votes and have been elected to serve as directors of the Company for one-year terms expiring at the Companys 2020 annual meeting of shareholders.
Proposal 2: Approval of a Non-Binding Resolution Regarding the Compensation of the Companys Named Executive Officers
The shareholders approved a non-binding resolution regarding the compensation of the Companys named executive officers for 2018, with votes as follows:
Proposal 3: Approval of the 2019 LTIP
The shareholders approved the 2019 LTIP, with votes as follows:
Proposal 4: Ratification of the Appointment of the Companys Independent Registered Public Accounting Firm
The appointment of Ernst & Young LLP as the Companys independent registered public accounting firm for 2019 was ratified by the shareholders, with votes as follows:
About EQT CORPORATION (NYSE:EQT)
EQT Corporation (EQT) is an energy company. The Company operates through two business segments: EQT Production and EQT Midstream. EQT Production is a natural gas producer in the Appalachian Basin with over 10 trillion cubic feet equivalent (Tcfe) of natural gas, natural gas liquid (NGL) and crude oil reserves across approximately 3.4 million acres, including approximately 630,000 gross acres in the Marcellus play. EQT Midstream provides gathering, transmission and storage services for the Company’s produced gas and for the independent third parties across the Appalachian Basin. Its EQT Production segment conducts lateral horizontal and completion drilling in the Appalachian Basin. EQT Production’s properties are located in Pennsylvania, West Virginia, Kentucky and Virginia. EQT Midstream owns or operates approximately 8,250 miles of gathering lines and approximately 180 compressor units, as well as other general property and equipment.
