Patterson-UTI Summary Description of Director Compensation
This document outlines the compensation for directors of Patterson-UTI. Employee directors do not receive additional pay for board service, but all directors are reimbursed for reasonable expenses related to board and committee meetings. Non-employee directors receive an annual cash payment of $35,000, with extra compensation for serving on the Audit or Compensation Committees. Committee members receive $10,000 per committee, and committee chairmen receive $15,000. Non-employee directors are also granted stock options upon joining the board and annually thereafter.
Exhibit 10.27
Summary Description of Director Compensation
Directors who are also employees of Patterson-UTI do not receive compensation for serving as a director or as a member of a committee of the Board of Directors. All directors are reimbursed for reasonable out-of-pocket expenses incurred in connection with attendance at Board of Directors meetings and committee meetings. Each non-employee director receives annual cash compensation of $35,000. Each non-employee director that serves on the Audit Committee or Compensation Committee receives additional annual cash compensation of $10,000 per committee on which he or she serves, with the chairman of each such committee receiving $15,000.
Patterson-UTI maintains a Non-Employee Director Stock Option Plan (the “Director Plan”). Under the Director Plan, each non-employee director is granted options to purchase 40,000 shares of common stock, $0.01 par value per share, of the Company (the “Common Stock”) upon becoming a director and is granted options to purchase 20,000 shares of Common Stock on the last business day of each subsequent year in which the director serves on the Board of Directors.
