Summary of Compensation for Executive Officers of Cheniere Energy, Inc.
Cheniere Energy, Inc. outlines the compensation arrangements for its executive officers, who are employed at will and do not have formal employment or severance agreements. Compensation includes an annual salary, eligibility for discretionary cash bonuses, stock awards under the company's incentive plan, and standard employee benefits. For 2007, base salaries were increased and 2006 bonuses were awarded as restricted stock, vesting over three years. The agreement details the specific salary and bonus amounts for the company's top executives.
Exhibit 10.1
Summary of Compensation for Named Executive Officers
All of the executive officers of Cheniere Energy, Inc. (Cheniere) are at will employees and none of them has an employment or severance agreement, other than as provided under the Cheniere Energy, Inc. Amended and Restated 2003 Stock Incentive Plan. The unwritten arrangements under which Chenieres executive officers are compensated include:
| a salary, reviewed annually by the Compensation Committee of the Board of Directors of Cheniere; |
| eligibility for a discretionary annual cash bonus, as determined by the Compensation Committee; |
| eligibility for awards under Chenieres Amended and Restated 2003 Stock Incentive Plan, as determined by the Compensation Committee; |
| health, life, disability and other insurance and/or benefits; and |
| vacation, paid sick leave and all other employee benefits. |
On January 5, 2007, Chenieres Compensation Committee approved base salary increases for all of Chenieres executive officers, effective as of January 1, 2007. In addition, the Compensation Committee approved a bonus payment for each executive officer with respect to the year ended December 31, 2006 (the 2006 Bonus Amount). The 2006 Bonus Amount will be paid in restricted shares of Chenieres common stock to be issued on January 12, 2007 (the Date of Grant). The number of restricted shares to be issued will be determined based on a 25% discount to the closing price of the Companys common stock as reported on the American Stock Exchange on the Date of Grant. Vesting will occur for one-third of the restricted shares on each anniversary of the Date of Grant beginning on the first anniversary of the Date of Grant. The following table sets forth the 2007 annual base salary and the 2006 Bonus Amounts for each of Chenieres principal executive officer, principal financial officer and the other executive officers named in the Summary Compensation Table in our Proxy Statement filed in 2006:
Executive Officer | 2007 Annual Base Salary | 2006 Bonus Amount | ||||
Charif Souki Chairman and Chief Executive Officer | $ | 577,500 | $ | 1,718,750 | ||
Stanley C. Horton President and Chief Operating Officer | $ | 446,250 | $ | 1,062,500 | ||
Walter L. Williams Vice Chairman | $ | 262,500 | $ | 468,750 | ||
Don A. Turkleson Senior Vice President and Chief Financial Officer | $ | 262,500 | $ | 468,750 | ||
Keith M. Meyer Senior Vice President, Marketing | $ | 262,500 | $ | 468,750 |