Breitburn Energy Partners LP (NASDAQ:BBEP) has filed a Form 8-K with the SEC, providing several recent updates to the regulatory and the shareholders. The most significant part of the 8-K was the company’s implementation of the “Key Executive Incentive Plan”. The plans were advised to the bored, by an independent compensation consultant, Meridian Compensation LLC. The participants of the plan include the COO, Mark L. Pease, the CFO, James G. Jackson, CAO, Gregory C. Brown and the CEO, Halbert S. Washburn.
The participants of the plan would be asked to voluntarily forfeit any long-term awards and incentives that had been granted to them, in 2016. As per the details of the agreement, the participants of the new plan would be awarded to equal cash installments. The first installment would be released once the participants enter into a definitive agreement or on meeting the FY2016 objectives. The second installment would be due for release once the board determines a satisfactory performance achievement, on part of the executives.
An estimated $10.7 million have been set aside, as award money for the participants, but no details about the share of each executive has been disclosed as yet. However, the incentive plan also demands that if a participant terminates his position at the company, prior to the completion of the transaction, they would be liable to repay the amount awarded to them, up to the point of the termination.
In addition to this, BBEP has also announced a “Key Employee Program”, for a total of 110 of its employees. Much like their predecessors, the key employees would also be required to forfeit all compensations granted to them, during 2016. Key Employees would, however, be entitled to quarterly compensations, of amounts yet to be determined by the board. Once again, the compensations would be closely tied to the employees performance and the meeting of certain objectives
Breitburn Energy Partners LP (NASDAQ:BBEP) closed at a share price of $0.390, after losing 2.5%, during the April 18.