Business Context and Reporting Period
Company: Green Plains Renewable Energy, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: September 29, 2006
Reporting Period: Event date of September 29, 2006
This filing reports the appointment of a new Chief Financial Officer and the departure of the acting CFO. The company is incorporated in Iowa and is currently in the pre-commercial production phase of its ethanol operations.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on executive compensation and personnel changes.
Material Changes
- Executive Appointment: Mr. Brian L. Larson was retained as Chief Financial Officer, transitioning from a consultant role.
- Executive Departure: Mr. Dan Christensen ceased acting as Chief Financial Officer but will remain as a director, secretary, and treasurer.
- Compensation Structure: A new employment agreement was executed for Mr. Larson with specific salary and bonus terms tied to commercial production milestones.
Guidance, Outlook, and Management Commentary
Employment Terms for New CFO:
- Base Salary: $135,000 annually, increasing to $150,000 upon the commencement of commercial ethanol sales.
- Signing Bonus: 1,250 shares of common stock, vesting upon the start of commercial ethanol production.
- Change-in-Control Bonus: $100,000 payable in the event of a change in control.
- Severance: Up to six months of compensation if terminated without cause.
- Term: Three-year initial term with potential one-year renewals.
- Equity Incentives: The company anticipates adopting an equity incentive plan for which Mr. Larson will be eligible.
Outlook: The compensation structure indicates the company is approaching the milestone of commercial ethanol production, which triggers salary increases and stock vesting.
Investor Verification Checklist
- Verify the exact date commercial ethanol production begins to confirm salary increase and stock vesting triggers.
- Confirm the status of the anticipated equity incentive plan adoption.
- Review the specific "cause" and "change-in-control" definitions in the full employment agreement.
- Monitor future filings for the first financial results post-commercial production.