Item 8.01 Other Events
Goodrich Petroleum Corporation (the "Company") has taken certain actions in order to finalize the grant of awards under the Company's long-term cash incentive plan (the "LTCIP") to the Company's named executive officers. The LTCIP awards are materially consistent with the terms of the LTCIP that were previously disclosed in the Company's Definitive Proxy Statement, filed with theSecurities and Exchange Commission onApril 7, 2021 . The target amount of the LTCIP award granted to the Company's named executive officers is (i)$2,000,000 forWalter G. Goodrich , the Company's Chairman and Chief Executive Officer, (ii)$2,000,000 forRobert C. Turnham , Jr., the Company's President and Chief Operating Officer, and (iii)$650,000 forMichael J. Killelea , the Company's Executive Vice President, General Counsel & Corporate Secretary. One-half of such target amount is subject to the "ROIC" performance goal shown below, which is generally measured over a single three-year performance period, and one-half of such target amount is subject to the "FCF" performance goal shown below, which is generally measured over three one-year performance periods. ROIC Performance Goal Performance Period:
Threshold Target Maximum ROIC Performance Hurdle 43.45 % 51.12 % 58.79 % Earned Percentage (of one-third of ROIC Annual Target Amount) 50 % 100 % 200 % "ROIC" means, with respect to the performance period noted above, the result (expressed as a percentage) of (i) the Company's earnings before interest, taxes, depreciation and amortization ("EBITDA"), divided by (ii) the Company's average invested capital (total assets less current liabilities). FCF Performance Goal Performance Period 1: Calendar Year 2021 Threshold Target Maximum FCF Performance Hurdle$ 10,530,000 $ 16,200,000 $ 21,860,000 Earned Percentage (of one-third of the FCF Target Amount) (per performance period) 50 % 100 % 200 %
"FCF" means, with respect to each separate calendar year performance period noted above, the result (expressed as a dollar amount) of (i) (a) the Company's discretionary cash flow, minus (b) the Company's net capital expenditures.
Both performance metric payouts are subject to annual Board approved budgets and are subject to customary terms and conditions including withholding and change of control provisions at target. 2
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