CONCHO RESOURCES INC. SUMMARY OF EXECUTIVE OFFICER COMPENSATION PROGRAM
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EX-10.15 2 d54735exv10w15.htm SUMMARY OF EXECUTIVE OFFICER COMPENSATION PROGRAM exv10w15
Exhibit 10.15
CONCHO RESOURCES INC.
SUMMARY OF EXECUTIVE OFFICER
COMPENSATION PROGRAM
SUMMARY OF EXECUTIVE OFFICER
COMPENSATION PROGRAM
Compensatory Arrangements of Certain Officers
On February 27, 2008, the compensation committee (the “Compensation Committee”) of the board of directors of the Company took certain actions with respect to the compensation of its executive officers, including approving bonuses for 2007 performance, establishing base salaries for 2008 and making option grants to executive officers under its 2006 Stock Incentive Plan. The exercise price of the stock options is $21.84, equal to the average of the high and low trading price of the Company’s common stock on the New York Stock Exchange on February 27, 2008. Information for the awards made to the Company’s principal executive officer, principal financial officer, and for the other affected named executive officers are set forth in the table below.
| 2007 | 2008 Base | Stock Option | ||||||||||||
| Officer | Title | Bonus | Salary | Awards | ||||||||||
| Timothy A. Leach | Chairman and Chief Executive Officer | $ | 350,000 | $ | 450,000 | 150,000 | ||||||||
| Steven L. Beal | President and Chief Operating Officer | $ | 350,000 | $ | 450,000 | 150,000 | ||||||||
| E. Joseph Wright | Vice President-Engineering and Operations | $ | 185,000 | $ | 250,000 | 40,000 | ||||||||
| Curt F. Kamradt | Vice President, Chief Financial Officer and Treasurer | $ | 175,000 | $ | 250,000 | 35,000 | ||||||||
| David W. Copeland | Vice President, General Counsel and Secretary | $ | 125,000 | $ | 250,000 | 30,000 | ||||||||
| Jack F. Harper | Vice President-Business Development and Capital Markets | $ | 150,000 | $ | 225,000 | 35,000 | ||||||||
2008 Incentive Compensation Plan for Executive Officers
On February 27, 2008 the Compensation Committee adopted an incentive compensation plan for the Company’s executive officers for the year ending December 31, 2008 (the “Incentive Compensation Plan”). The Incentive Compensation Plan is designed to reward the Company’s executive officers for achieving certain performance metrics, including net asset value per share growth, annual EBITDAX per share growth, total proved reserves growth, finding costs, annual production and any other performance metric considered by the Compensation Committee. In addition, the Compensation Committee retained the ability to apply discretion to awards based on extenuating market circumstances or on individual performance. Pursuant to the Incentive Compensation Plan, the Compensation Committee has set the target annual cash bonus amount for 2008 to be 100% of the 2008 base salary for each of Messrs. Leach and Beal, although awards to these two officers may range from 0% to 200% of 2008 base salary depending on the accomplishment of the performance metrics discussed above and subject to the discretion of the Compensation Committee. The target annual cash bonus for Messrs. Wright, Kamradt, Copeland and Harper will be allocated by the Compensation Committee from a bonus pool. The bonus pool for these officers is expected to be equal to 68% of the aggregate of their 2008 base salaries, although the bonus pool may range from 0% to 136% of the aggregate of their 2008 base salaries depending on the accomplishment of the performance metrics discussed above and subject to the discretion of the Compensation Committee.
