Business Context and Reporting Period
This Form 8-K filing by Green Plains Renewable Energy, Inc. (Green Plains Inc.) reports a corporate governance event dated June 8, 2007, with the report filed on June 11, 2007. The company is incorporated in Iowa and operates in the renewable energy sector, specifically ethanol production.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on executive compensation and appointment details.
Material Changes
The primary material change reported is the appointment of Mr. Jerry Peters as Chief Financial Officer, effective June 8, 2007. This appointment includes a new five-year employment agreement with the following compensation terms:
- Base Salary: Minimum annual salary of $190,000, increasing to $220,000 upon the full operational status of the ethanol plant in Superior, Iowa.
- Stock Options: Options for 60,000 shares of common stock, vesting in four equal annual installments starting June 8, 2007.
- Restricted Stock: 12,000 shares of stock, vesting in six equal annual installments starting June 8, 2007.
- Bonus: Potential bonus compensation of 30% to 50% of annual salary based on company-determined objectives.
Outlook, Risks, and Management Commentary
Management commentary is limited to the background of the new CFO. Mr. Peters brings significant experience from ONEOK Partners, L.P., where he served as CFO from 1994 to May 2006 and as Senior Vice President-Chief Accounting Officer from May 2006 to April 2007. Prior to that, he was a CPA at KPMG LLP. The filing notes the employment agreement is subject to early termination upon specified events but does not detail specific risks or contingencies beyond the standard terms of the contract.
Investor Verification Checklist
- Verify the operational status of the Superior, Iowa ethanol plant to determine if the CFO's salary has increased to $220,000.
- Review the specific performance objectives tied to the 30-50% bonus compensation.
- Confirm the vesting schedule and exercise terms for the 60,000 stock options and 12,000 restricted shares granted to Mr. Peters.
- Check subsequent filings for any changes to the executive team or the specified termination events in the employment agreement.