Business Context and Reporting Period
This Form 8-K Current Report was filed by Suburban Propane Partners, L.P. on October 26, 2017. The filing reports on corporate governance changes, specifically executive promotions and associated compensatory arrangements approved by the Board of Supervisors on October 25, 2017.
Key Financial Metrics
The filing does not provide financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation adjustments.
Material Changes
The primary material change reported is the promotion of three senior executives effective immediately:
- Steven C. Boyd: Promoted from Senior Vice President – Operations to Chief Operating Officer.
- Daniel S. Bloomstein: Promoted from Controller to Vice President and Controller.
- Michael Schueler: Promoted from Managing Director – Product Supply to Vice President – Product Supply.
Management Commentary and Compensation Details
Management commentary is limited to the rationale for the promotions and the specific terms of the compensation package for the new Chief Operating Officer, Steven C. Boyd:
- Base Salary: Increased to $365,000 for the 2018 fiscal year (up from $330,000).
- Bonus Target: Remains at 80% of base salary for the 2018 fiscal year.
- Restricted Units: An award with a market value of $675,000 was approved, effective November 15, 2017. The number of units is calculated based on the average closing price of Common Units over the 20 trading days prior to the grant date.
- Vesting Schedule: Restricted units vest over three years, with 33.33% vesting at the end of each anniversary of the grant date. Upon vesting, units convert to Common Units.
The filing confirms no other transactions exceeding $120,000 involving Mr. Boyd or his immediate family members since September 25, 2016, other than the described compensation.
Investor Verification Checklist
- Verify the exact number of restricted units granted to Steven C. Boyd once the 20-day average stock price is calculated.
- Review the attached Press Release (Exhibit 99.1) for additional context on the leadership changes.
- Confirm the impact of the salary increase and bonus structure on the Partnership's total executive compensation expense for the 2018 fiscal year.