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SEC Filings

DEF 14A
ARCH COAL INC filed this Form DEF 14A on 03/18/2019
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        The following table shows the allocation of total target compensation for each NEO for each of the last three years:

 
  % of Target 2016
Compensation(1)
   
  % of Target 2017
Compensation(1)
   
  % of Target 2018
Compensation(1)
 
 
   
  Performance-
Based
   
   
  Performance-
Based
   
   
  Performance-
Based
 
 
  Fixed    
  Fixed    
  Fixed  
 
   
   
 
 
  Base
Salary
   
  Long-
Term
   
  Base
Salary
   
  Long-
Term
   
  Base
Salary
   
  Long-
Term
 
 
  Annual    
  Annual    
  Annual  
Name
   
   
 

John W. Eaves

    18 %   20 %   62 %       18 %   20 %   62 %       18 %   20 %   62 %

John T. Drexler

    22 %   18 %   60 %       22 %   18 %   60 %       22 %   18 %   60 %

Paul A. Lang

    20 %   18 %   62 %       20 %   18 %   62 %       20 %   19 %   61 %

John A. Ziegler, Jr. 

                                    24 %   15 %   61 %

Robert G. Jones

    24 %   15 %   61 %       24 %   15 %   61 %       24 %   15 %   61 %

(1)
For purposes of determining total compensation, we have included base salary, target annual cash incentives and the value of target long-term incentive awards (excluding, for 2016, grants of restricted stock units made following our emergence from Chapter 11 and, for 2018, one-time retention grants made to Messrs. Eaves, Drexler and Lang for succession planning purposes).

Base Salary —

        We provide each named executive officer with an annual base salary. Base salaries for our named executive officers depend on each executive's experience and scope of responsibilities as well as the median market data for comparable job positions at companies within our peer group. We increase base salary primarily in response to notable achievements or for additions in scope of responsibilities. In addition, we may increase base salary to remain competitive in the marketplace.

        During 2018, as part of the Committee's annual compensation review process, the Committee determined that the base salaries for our NEOs should not be increased. Our NEOs have not received base salary increases since 2015.

Annual Incentive Compensation Program —

    Overview —

        The Committee designed the Annual Incentive Compensation Program to focus our organization on meeting and exceeding certain annual financial and operating objectives by rewarding those key employees with the greatest ability to influence our results.

        For 2018, the Committee selected Adjusted EBITDA and Free Cash Flow as the financial performance measures for the program. Adjusted EBITDA constitutes 50% of the total target award, and Free Cash Flow represents 20% of the total target award. Consistent with prior years, the Committee chose environmental and safety metrics as the operating performance measures for the program, each of which constitute 15% of the total target award. The environmental and safety measures continue to be part of the 2018 program because these goals reflect our core values.

        Early each year, the Committee determines the compensation plan design for the annual cash incentives based on performance from the prior year, as well as other factors. The Committee recommends the annual plan design, as well as the performance targets, to the Board for approval. Annual cash awards contain various

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