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DEF 14A
ARCH COAL INC filed this Form DEF 14A on 03/18/2019
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    2018 Annual Grants —

        On October 25, 2018, each of our NEOs received awards of restricted stock units ("RSUs") as follows:

Named Executive Officer
  Time-Based
RSUs(1)
  Performance-Based
RSUs(1)
 

John W. Eaves

    19,350     19,350  

John T. Drexler

    8,550     8,550  

Paul A. Lang

    11,750     11,750  

John A. Ziegler, Jr. 

    5,050     5,050  

Robert G. Jones

    6,100     6,100  

(1)
The number of RSU awards granted to each NEO were determined based upon the 20-day volume weighted average price ("VWAP") of a share of our common stock on the date of grant.

        The time-based and performance-based RSU awards vest on the third anniversary of the grant date. The performance-based RSU award is earned based on the VWAP of a share of our common stock for any 45-day trading period during the three-year performance period (the "45-day VWAP"), subject to achieving threshold performance of a 45-day VWAP of no less than $99. On the date of grant, the 45-day VWAP was $91.63. The NEOs may earn up to 150% of the target number of performance-based RSUs based on achievement of 45-day VWAP performance levels. While we have not disclosed the target 45-day VWAP performance level for the performance-based RSUs granted in 2018 because we believe this forward-looking measure is not material to an understanding of the compensation earned by our NEOs in the last completed fiscal year, at the time this measure was established, the Committee determined it was appropriately challenging to promote the creation of long-term value for our stockholders.

    2016-2018 Performance Unit Award Achievement —

        Our compensation program for 2016 included long-term incentive plan awards of performance units for the 2016-2018 performance period. The performance units were granted prior to the Company's emergence from Chapter 11 and were approved by our prior Personnel and Compensation Committee and Board. Only the performance unit component of the 2016 LTIP was approved, representing a 70% reduction in the long-term incentive awards to our NEOs. The performance unit awards, which are tied to our safety and environmental performance, have historically paid out in cash. In early 2019, the Committee evaluated the level of achievement of the various performance measures for the 2016-2018 performance period and made the following determinations for such performance unit awards:

Performance Measure
  Target   Actual
Performance
  Relative
Weighting
  Weighted Payout
Percentage
 

Safety Incident Rate

  1.04   1.31     50 %   0 %

Environmental Compliance

  7 NOVs   2 NOVs     50 %   100 %

        Total actual amounts paid to each NEO under the 2016 performance unit awards for the Company's 2016-2018 performance are set forth in the footnotes to the Summary Compensation Table below.

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