Hornbeck Offshore Services, Inc. (NYSE:HOS) 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 Principal Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Hornbeck Offshore Services, Inc. (NYSE:HOS) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Each of our named executive officers was paid a retention bonus on January 17, 2020 equal to 200% of his base salary. A similar retention payment was made in early 2019, offset by a commensurate reduction in the target grant value of such executive’s long-term incentive opportunity for equity-based awards in early 2019. This year’s retention bonus payments were made in lieu of equity-based long-term incentive compensation in light of the Company’s currently depressed stock price coupled with the Company’s desire to retain its named executives. With respect to such bonus, 50% of the retention payment is subject to clawback in the event the executive voluntarily resigns or is involuntarily terminated for cause before the one-year anniversary of the grant of such bonus, and 50% is subject to clawback in such events after the one-year anniversary of such grant but prior to 18 months following such grant.
Each named executive officer is required to repay the ratable portion of the after-tax value of the applicable clawback amount if his employment is terminated before the applicable period following the payment date of such bonus for any reason other than (i) by the Company without good cause (as defined in the executive’s employment agreement), (ii) a constructive termination, as described under the executive’s change in control agreement or employment agreement (as applicable) or (iii) upon the death or permanent disability of the executive.
The Company believes such bonuses, subject to the clawback provisions, are in-line with the Company’s philosophy of balancing its dual objectives of pay-for-performance and retention of our executives in light of prevailing market conditions currently facing the Company and the offshore energy industry.
About Hornbeck Offshore Services, Inc. (NYSE:HOS)
Hornbeck Offshore Services Inc. provides marine transportation, subsea installation and accommodation support services to exploration and production, oilfield service, offshore construction and the United States military customers. The Company focuses on providing marine solutions for the deepwater and ultradeepwater energy industry in domestic and select foreign locations. The Company, through its subsidiaries, operates offshore supply vessels (OSVs), multi-purpose support vessels (MPSVs), and a shore-base facility to provide logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in the United States, Gulf of Mexico, Latin America and selected international markets. Its OSVs and MPSVs support the deep-well, deepwater and ultra-deepwater activities of the offshore oil and gas industry. It provides vessel management services for other vessel owners, such as crewing, daily operational management and maintenance activities.