UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 19, 2009
SUPERIOR ENERGY SERVICES, INC.
(Exact name of registrant as specified in its charter)
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| Delaware
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001-34037
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75-2379388 |
| (State or other jurisdiction)
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(Commission File Number)
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(IRS Employer Identification No.) |
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| 601 Poydras St., Suite 2400, New Orleans, Louisiana
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70130 |
| (Address of principal executive offices)
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(Zip Code) |
(504) 587-7374
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligations of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
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| Item 5.02. |
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Departure of Directors or Certain Officers;
Election of Directors; Appointment of
Certain Officers; Compensatory Arrangements
of Certain Officers. |
| (e) |
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Approval of 2009 Annual Incentive Compensation Targets |
On February 19, 2009, the Compensation Committee of the Superior
Energy Services, Inc. Board of Directors approved the incentive
compensation targets for its 2009 incentive bonus program. The
parameters of the program provide for minimum, target and maximum
cash bonus award levels, as a percentage of salary, based upon the
achievement of 90%, 100% and 110% of a pre-tax income target that
aligns with the Company’s financial goals.
Depending on the corporation’s financial performance relative to
the targets, the bonus payout levels, which vary depending on the
executive’s position, stated as a percentage of the officer’s
annual salary, are as follows:
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| Position |
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Minimum |
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Target |
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Maximum |
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(90% of Target) |
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(110% of Target) |
CEO
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45 |
% |
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90 |
% |
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180 |
% |
COO
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37.5 |
% |
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75 |
% |
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150 |
% |
CFO
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32.5 |
% |
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65 |
% |
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130 |
% |
Sr. EVPs
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30 |
% |
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60 |
% |
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120 |
% |
EVPs
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27.5 |
% |
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55 |
% |
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110 |
% |
If the financial performance occurs at a level in between these
factors, a sliding scale is used to estimate the appropriate payout
factor, with adjustments for safety performance as discussed below.
Assuming a particular officer qualifies for a bonus payout, the
payout can either be reduced by a maximum of 25% if pre-determined
“base” metrics are not met, or increased by a maximum of 12.5% for
achieving “stretch” targets. The metric applicable to the
Company’s executive officers is safety performance, and Total
Recordable Incident Rate (TRIR) will be used to measure safety
performance.
Under the terms of the Company’s incentive bonus program, any bonus
amounts determined under the formulas described above may be
adjusted in order to ensure that they are appropriate in light of
the performance factors relevant to the particular officer,
including discretionary adjustments based on other non-financial
performance related metrics. All bonuses are approved by the
Compensation Committee upon the recommendation of Company
management.