Archrock, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Archrock, Inc. on February 17, 2020. The filing details the adoption of the 2020 Short-Term Incentive Program and adjustments to base salaries for Named Executive Officers, effective April 2020.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margins, debt, or liquidity figures. It focuses exclusively on executive compensation structures.
Material Changes and Compensation Details
The Compensation Committee established the following 2020 compensation parameters for Named Executive Officers:
- Short-Term Incentive Targets: Cash incentive targets range from 70% to 120% of eligible earnings. Potential payouts range from 0% to 200% of the target.
- Performance Metrics: Payouts are based on Adjusted EBITDA, Safety, Service, People (retention), Technology initiatives, and Operational performance.
- Base Salary Adjustments (Effective April 2020):
- D. Bradley Childers (CEO): $875,000 (No change)
- Douglas S. Aron (CFO): Increased from $450,000 to $460,000
- Stephanie C. Hildebrandt (General Counsel): Increased from $410,000 to $420,000
- Jason G. Ingersoll (SVP Marketing/Sales): Increased from $350,000 to $360,000
Guidance, Outlook, and Risks
The Committee reserved the right to modify target levels for performance indicators based on internal and external developments during 2020. The filing does not contain specific financial guidance, risk factors, or contingencies beyond the discretionary nature of the incentive program.
Key Facts for Investor Verification
- Verify the specific definition of "Adjusted EBITDA" used for executive payouts against the company's standard non-GAAP reconciliations.
- Confirm the total number of eligible employees participating in the 2020 Incentive Program beyond the Named Executive Officers.
- Monitor future filings for actual performance results against the 2020 targets to determine final payout amounts.
- Note that base salary increases for three of the four executives are effective April 2020, not immediately upon the February filing date.