STONE ENERGY CORPORATION (NYSE:SGY) 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
informed the Board of Directors (the Board) of Stone Energy
Corporation (the Company) of his intention to retire as the Chief
Executive Officer and President of the Company and as a member of
the Board. On May 11, 2017, Mr. Welch entered into a Separation
Agreement and General Release (the Agreement) with the Company
providing for certain compensation, benefits and other terms
relating to his retirement, and he resigned from the Board.
separation from employment is effective as of April 28, 2017,
(ii) Mr. Welch will be entitled to his outstanding wages and
accrued vacation and sick pay in the amount of $100,000, (iii)
Mr. Welch will receive a lump sum severance payment in the amount
of 18 months of base salary, equal to $975,000, and a lump sum
bonus payment of $260,000, equal to the prorated portion of Mr.
Welchs annual bonus opportunity of 120% of his annual base salary
through April 28, 2017, (iv) Mr. Welch will receive $365,625 owed
to him under the Companys Key Executive Incentive Plan, (v) the
Company will subsidize the medical insurance premiums under COBRA
for Mr. Welch and his eligible dependents for six months after
April 28, 2017 or until Mr. Welch obtains new employment with a
health benefit plan similar to that being continued, (vi) the
next tranche of unvested warrants and restricted stock held by
Mr. Welch, consisting of 5,201 warrants and 1,473 shares of
restricted stock, will fully vest as of the date provided for
under the terms of the Agreement, and (vii) the Company will
reimburse Mr. Welch for outplacement services up to $32,500.
to the Company and agreed to remain subject to certain
confidentiality covenants. Mr. Welch may revoke the Agreement for
a period of seven days following its execution. If the Agreement
is not revoked, it will become effective on the eighth day
following the execution of the Agreement. If Mr. Welch exercises
his revocation right, the Agreement will have no force or effect.
The description of the Agreement is qualified in its entirety by
reference to the full text of the Agreement, a copy of which is
attached as Exhibit 10.1 to this Current Report on Form 8-K.
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10.1
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Separation Agreement and General Release, dated as of
May 11, 2017, by and between David H. Welch and Stone Energy Corporation |
About STONE ENERGY CORPORATION (NYSE:SGY)
Stone Energy Corporation is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, exploitation, development and operation of oil and gas properties. The Company operates in the Gulf of Mexico (GOM) basin. It has leveraged its operations in the GOM conventional shelf and has its reserve base in the prolific basins of the GOM deep water, Gulf Coast deep gas, and the Marcellus and Utica shales in Appalachia. Its estimated proved oil and natural gas reserves are over 60 million barrels of oil equivalents (MMBoe) or 340 billion cubic feet equivalent (Bcfe). Over 95 MMBoe or 570 Bcfe of its estimated proved reserves are revised downward. It has made investments in seismic data and leasehold interests, and has geological, geophysical, engineering and operational operations in deep water arena to evaluate potential exploration, development and acquisition opportunities. It holds over two deep water platforms, producing reserves and various leases. STONE ENERGY CORPORATION (NYSE:SGY) Recent Trading Information
STONE ENERGY CORPORATION (NYSE:SGY) closed its last trading session down -0.08 at 21.51 with 188,122 shares trading hands.