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SEC Filings

DEF 14A
ARCH COAL INC filed this Form DEF 14A on 03/18/2019
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    Impact of Section 162(m) on Compensation

        Prior to the Tax Cuts and Jobs Act ("Tax Reform") that was signed into law December 22, 2017, Section 162(m) of the Internal Revenue Code generally limited to $1 million the U.S. federal income tax deductibility of compensation paid in one year to a company's CEO or any of its three next-highest-paid executive officers (other than its Chief Financial Officer). Compensation that qualified as "performance-based" under Section 162(m) of the Code was exempt from this $1 million limitation. As part of Tax Reform, the ability to rely on this "qualified performance-based compensation" exception was eliminated, and the limitation on deductibility was generally expanded to include all named executive officers. Although we maintain compensation arrangements that were intended to qualify as performance-based compensation under Section 162(m) prior to Tax Reform, subject to certain transition relief rules, we may no longer take a deduction for any compensation paid to our covered employees in excess of $1 million. Furthermore, although the Committee may have taken action intended to limit the impact of Section 162(m) of the Internal Revenue Code, it also believes that the tax deduction is only one of several relevant considerations in setting compensation. The Committee believes that stockholder interests are best served by not restricting the Committee's flexibility in structuring compensation programs, even though such programs may result in non-deductible compensation expenses. Accordingly, achieving the desired flexibility in the design and delivery of compensation may result in compensation that in certain cases is not deductible for federal income tax purposes.

2018 Summary Compensation Table

        The following table is a summary of compensation information for our chief executive officer, our chief financial officer and each of the other three most highly compensated executive officers for the fiscal year ended December 31, 2018.

Name and
Principal Position
  Year   Salary
($)
  Bonus
($)
  Stock
Awards
($)(1)
  Non-Equity
Incentive Plan
Compensation
Earnings
($)(2)
  Change in
Pension
Value and
Non-Qualified
Deferred
Compensation
Earnings
($)(3)
  All Other
Compensation
($)(4)
  Total
($)
 
John W. Eaves     2018   $ 1,025,000   $ 0   $ 5,217,809   $ 2,920,855   $ 19,741   $ 44,310   $ 9,227,715  

Chief Executive Officer

    2017   $ 1,025,000   $ 2,021,739   $ 4,175,802   $ 2,387,087   $ 138,136   $ 42,450   $ 9,790,214  
      2016   $ 1,025,000   $ 192,188   $ 10,237,770   $ 1,302,173   $ 189,651   $ 40,213   $ 12,986,995  

John T. Drexler

 

 

2018

 

$

575,000

 

$

0

 

$

2,307,321

 

$

1,274,002

 

$

0

 

$

37,966

 

$

4,194,289

 

Senior Vice President and Chief

    2017   $ 575,000   $ 1,008,992   $ 1,847,700   $ 1,024,131   $ 66,312   $ 33,170   $ 4,555,305  

Financial Officer

    2016   $ 575,000   $ 107,813   $ 3,232,980   $ 555,730   $ 94,864   $ 40,963   $ 4,607,350  

Paul A. Lang

 

 

2018

 

$

725,000

 

$

0

 

$

3,220,809

 

$

1,719,999

 

$

0

 

$

17,706

 

$

5,683,514

 

President and Chief Operating

    2017   $ 725,000   $ 1,318,903   $ 2,531,349   $ 1,396,482   $ 109,228   $ 18,458   $ 6,099,420  

Officer

    2016   $ 725,000   $ 135,938   $ 5,388,300   $ 765,954   $ 152,081   $ 14,033   $ 7,181,306  

John A. Ziegler, Jr. 

 

 

2018

 

$

375,000

 

$

0

 

$

980,407

 

$

649,353

 

$

0

 

$

28,353

 

$

2,033,113

 

Chief Commercial Officer

    2017                              
      2016                              

Robert G. Jones

 

 

2018

 

$

450,000

 

$

0

 

$

1,184,254

 

$

779,224

 

$

19,509

 

$

25,376

 

$

2,458,363

 

Senior Vice President — Law, General

    2017   $ 450,000   $ 605,254   $ 1,311,867   $ 645,225   $ 63,615   $ 24,831   $ 3,100,792  

Counsel and Secretary

    2016   $ 450,000   $ 59,766   $ 1,885,905   $ 372,345   $ 83,787   $ 25,607   $ 2,877,410  

(1)
Amounts shown represent the aggregate grant date fair value of all stock awards made to each NEO during the year indicated. We have determined the grant date fair value in accordance with FASB ASC Topic 718, excluding the effect of estimated

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