Tellurian signs employment contracts with executives after LNG sales deals with commodities firms and Shell
Tellurian Inc., the developer of the Driftwood LNG project in Louisiana, has sealed new employment contracts with Executive Chairman Charif Souki and President and Chief Executive Octávio Simões after signing key sales agreements.
The Houston, Texas-based company informed the Securities and Exchange Commission of executive compensation deals after signing 10-year supply accords earlier in 2021 with commodities companies Gunvor and Vitol as well as Royal Dutch Shell.
The Driftwood project has permits for production capacity of around 27 MTPA. The plant will be sited on the west bank of the Calcasieu River, just south of Lake Charles.
Tellurian told the SEC it entered into an employment agreement with the Chairman Souki for an initial three-year term and will automatically renew for an additional 12-month term at the end of the initial three-year term and each subsequent one-year anniversary thereafter, unless terminated by the company or Souki himself.
“The Executive Chairman’s employment agreement provides for an annual base salary of $1,200,000, which is consistent with the level of Mr. Souki’s cash compensation for fiscal year 2021 and is subject to annual review by the board of directors,” Tellurian said in its statement.
In addition, the Chairman Souki’s agreement provides for a discretionary annual cash bonus target of 150 percent of Souki’s annual base salary, subject to a cap of 300 percent.
“Payment of any such annual cash bonus will be based on Mr. Souki’s and the company’s performance, as determined by the board,” it added.
There were no other details of any other compensation that might be due to Souki in the form of company stocks.
Tellurian has also entered into an employment agreement with the President and CEO Octávio Simões for an initial term through June 5, 2024.
His employment would automatically renew for an additional 12-month term at the end of the initial term and each subsequent one-year anniversary thereafter, unless terminated.
“The CEO’s employment agreement provides for an annual base salary of $725,000, which is consistent with Mr. Simões's current annual base salary and is subject to annual review by the Board,” said the Tellurian filing.
“In addition, the CEO’s agreement provides for a discretionary annual cash bonus target of 125 percent of Mr. Simões’s annual base salary, subject to a cap of 218.75 percent of Mr. Simões’s annual base salary,” it added.
Pursuant to the CEO deal, the parties agreed to amend the terms of Simões’s restricted stock agreements covering a total of 2,000,000 shares of Tellurian restricted stock and a cash incentive award agreement providing for a cash award of up to $5 million (in each case vesting in one-third increments upon an affirmative final investment decision) by the board.
In project activities Tellurian has also filed applications with the US Federal Energy Regulatory Commission to build a new 37-mile pipeline in Louisiana that will originate near Ragley in Beauregard Parish and end near Carlyss in Calcasieu Parish, close to where the Driftwood facility will be located.
