ITEM 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Phantom Unit Grants to Named Executive Officers
OnAugust 19, 2021 , the board of directors (the "Board") ofPAA GP Holdings LLC ("GP Holdings "), the general partner ofPlains GP Holdings, L.P. ("PAGP"), approved grants of phantom units to certain of those individuals who were identified as Named Executive Officers in PAGP's 2021 proxy statement. These phantom unit grants were consistent with the annual LTIP targets disclosed in the 2021 proxy statement. The annual LTIP target values and resulting LTIP grants approved by the Board are set forth below: Annual LTIP Award Target Value 2021 Annual LTIP No. of Phantom Name and Title(1) (as a percentage of base
salary) Award Value Units Granted(2)
500 %$ 3,000,000 300,600Al Swanson , Executive Vice President and Chief Financial Officer 300 %$ 1,200,000 120,200Richard McGee , Executive Vice President, General Counsel and Secretary 300 %$ 1,200,000 120,200Chris Chandler , Executive Vice President and Chief Operating Officer 300 %$ 1,200,000 120,200Jeremy Goebel , Executive Vice President and Chief Commercial Officer
300 %$ 1,200,000 120,200 (1) Annual LTIP grants were not awarded toHarry Pefanis , President, as he requested to not participate in the 2021 long-term incentive program.
(2) Based on a volume weighted average price per unit for a 10-day period
preceding the date of grant of$9.98 .
The phantom units will vest (become payable 1-for-1 in common units of
(a) Tranche 1, consisting of 50% of the number of phantom units granted, will
vest on the
such date;
(b) Tranche 2, consisting of 25% of the number of phantom units granted (assuming
100% payout at target), will potentially vest on the
date at a scaled payout range of between 0% to 200% based on PAA's total
shareholder return (TSR) over the three-year period ending
compared to the TSR of a selected peer group (payout may be reduced if PAA's
absolute TSR is negative); and
(c) Tranche 3, consisting of 25% of the number of phantom units granted (assuming
100% payout at target), will potentially vest on the
date at a scaled payout range of between 0% to 200% based on PAA achieving
cumulative distributable cash flow per common unit equivalent of
the three-year period ending
adjustment by plus or minus 50 gross percentage points (subject to a cap of
200%) based on the extent to which PAA achieves a leverage ratio as of June
30, 2024 that is less than or greater than, respectively, the target leverage
ratio for such date assumed in PAA's long term plan as of
or minus .15x, as applicable). The phantom units include tandem distribution equivalent rights ("DERs") that vest as follows: (a) DERs associated with Tranche 1 will accrue for the first year and such accrued amount will be paid in cash in a lump sum on theAugust 2022 distribution date; beginning inNovember 2022 , DERs associated with Tranche 1 will be paid quarterly until the related phantom units vest; and (b) DERs associated with Tranches 2 and 3 will accrue during the three-year vesting period and will be paid in cash in a lump sum on theAugust 2024 distribution date with respect to the number of phantom units, if any, that vest on such
date. 2
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