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SEC Filings

DEF 14A
ARCH COAL INC filed this Form DEF 14A on 03/18/2019
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incentive levels based on the participant's accountability and impact on our performance, with target opportunities established as a percentage of base salary based on the median market data.

        The following table shows the target opportunities available to the NEOs as a percentage of their base salaries and the actual payouts as a percentage of their base salaries for each of the last three years:

 
  2016   2017   2018  
Name
  Target as % of
Base Salary
  Actual Payout
as % of Base
Salary(1)
  Target as % of
Base Salary
  Actual Payout
as % of Base
Salary
  Target as % of
Base Salary
  Actual Payout
as % of Base
Salary
 

John W. Eaves

    110 %   45 %   110 %   133 %   110 %   180 %

John T. Drexler

    85 %   35 %   85 %   103 %   85 %   139 %

Paul A. Lang

    90 %   37 %   90 %   109 %   90 %   147 %

John A. Ziegler, Jr. 

                    60 %   98 %

Robert G. Jones

    60 %   24 %   60 %   73 %   60 %   98 %

(1)
To expedite the Company's emergence from Chapter 11 during 2016 and achieve a consensual Chapter 11 Plan of Reorganization, our executive officers agreed to reduce their earned 2016 annual incentive payouts and earned performance unit awards for the 2014-2016 performance period by an aggregate amount of $6 million. This decision resulted in a $1,651,260 reduction in the aggregate amount of the 2016 earned annual incentives paid to our NEOs.

        The following table shows the performance measures used in the 2018 Annual Incentive Compensation Program for our NEOs, together with the percentage of the total annual cash incentive grant that such component comprises. Each of the components for the NEOs is described in greater detail below.

Performance Measure
  2018
Portion of Total
Target Award
 

Adjusted EBITDA

    50 %

Free Cash Flow

    20 %

Safety Incident Rate

    15 %

Environmental Compliance

    15 %

        We believe that these performance measures align our compensation packages with both stockholder and employee interests by targeting specific performance goals and operational standards. By identifying meaningful performance measures and by assigning certain measures greater weight, we are able to more closely align compensation to the achievement of those business objectives over which particular employees have the greatest impact.

        If the target level of performance is achieved with respect to a particular performance measure, the applicable payout percentage for that performance measure will equal 100%. Achievement at the threshold performance level results in an applicable payout percentage that varies based on the performance measure, as shown in the table below. If the maximum level of performance is achieved with respect to a particular performance measure, the payout percentage for that measure will equal 200% of target performance. We interpolate payouts under the

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