Summary of Executive Officer Compensation Arrangements for Frontier Oil Corporation (2007)
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Summary
Frontier Oil Corporation outlines the compensation structure for its executive officers, who are employed at will and do not have formal employment agreements. Compensation includes an annual salary (reviewed by the Board's Compensation Committee), eligibility for annual cash bonuses and incentive awards, various insurance and benefit plans, pension and savings plans, and standard employee benefits. Executives also have severance and change in control agreements, with some participating in a retiree medical plan. The document lists 2007 base salaries and incentive targets for each executive officer.
EX-10.40 3 ex10_40.htm EXHIBIT 10.40 Exhibit 10.40
Exhibit 10.40
Summary of Compensation for Executive Officers
The executive officers of Frontier Oil Corporation (“Frontier”) are “at will” employees, and none of them has an employment agreement. The unwritten arrangements under which Frontier’s executive officers are compensated include:
| · | a salary, reviewed annually by the Compensation Committee of the Board of Directors of Frontier; |
| · | eligibility for an annual cash bonus, as determined by the Compensation Committee; |
| · | eligibility for awards under Frontier’s Omnibus Incentive Compensation Plan, as determined by the Compensation Committee; |
| · | health, life, disability, death and other insurance and/or benefits; |
| · | defined contribution pension and savings plan; and |
| · | vacation, paid sick leave and all other employee benefits. |
In addition, each of the executive officers of Frontier have entered into an Executive Change in Control Severance Agreement and an Executive Severance Agreement. Messrs. Gibbs, Eisman and Jennings also participate in an Executive Retiree Medical Benefit Plan.
The table below sets forth the base salaries, effective as of January 1, 2007, for the executive officers of Frontier who held office as of January 1, 2007, as well as their incentive target for 2007 (as a percentage of base salary).
| Executive Officer | 2007 Annual Base Salary | Incentive Target for 2007 (Percentage of Base Salary) |
| James R. Gibbs Chairman of the Board, Chief Executive Officer and President | $885,000 | 100% |
| Michael C. Jennings Executive Vice President-Chief Financial Officer | $415,000 | 70% |
| W. Paul Eisman Executive Vice President-Refining & Marketing | $430,000 | 70% |
| Jon D. Galvin Vice President | $280,000 | 50% |
| Nancy J. Zupan Vice President-Controller | $280,000 | 50% |
| J. Currie Bechtol Vice President-General Counsel & Secretary | $300,000 | 50% |
| Gerald B. Faudel Vice President-Corporate Relations and Environmental Affairs | $220,000 | 40% |
| Doug S. Aron Vice President-Corporate Finance | $185,000 | 40% |
