Rentech, Inc. Announces Equity Awards for New Chief Executive Officer
January 05 2015 - 7:00AM
Business Wire
Rentech, Inc. (NASDAQ: RTK) announced today compensation details
for its newly appointed chief executive officer, Keith B. Forman,
including inducement equity awards. Mr. Forman’s compensation
package is designed to maximize pay-for-performance and align his
realized compensation with shareholder returns.
Under the terms of Mr. Forman’s employment agreement, he will
receive an annual salary of $200,000. Mr. Forman received an
inducement award of performance share units (PSUs). Under the terms
of the PSUs, Rentech’s total shareholder return (TSR) over a period
of up to four years must be at least 50 percent for any shares to
be earned under the award. The TSR must be at least 100 percent in
order for Mr. Forman to earn the target of 1,008,265 shares. Mr.
Forman also received an inducement grant of an option to purchase
up to 1,102,491 shares of Rentech’s common stock at an exercise
price of $1.24 per share. Twenty-five percent of the option will
vest on December 9, 2015, and the balance will vest in equal
monthly increments thereafter for the following three years. The
option has a five-year term. Mr. Forman will not be eligible for a
cash bonus in 2015.
Mr. Forman is entitled to earn the PSUs based on Rentech’s TSR
as measured initially on the third anniversary of December 9, 2014
(the Vesting Start Date). Subject to Mr. Forman’s continued
employment, he may earn 50 percent to 200 percent of the target
PSUs for a TSR between 50 percent and 200 percent on the third
anniversary of the Vesting Start Date. Any PSUs that have not been
earned on the third anniversary may vest on the fourth anniversary
based on the TSR over the full four-year period. Upon any vesting,
each PSU that has been earned is settled for one share of common
stock.
The equity awards were approved by the compensation committee of
the board of directors and ratified by the full board as an
inducement material to Mr. Forman entering into employment with the
company. The inducement awards were granted in accordance with
NASDAQ Listing Rule 5635(c)(4).
About Rentech, Inc.
Rentech, Inc. (NASDAQ: RTK) owns and operates wood fibre
processing, wood pellet production and nitrogen fertilizer
manufacturing businesses. Rentech offers a full range of integrated
wood fibre services for commercial and industrial customers around
the world, including wood chipping services, operations, marketing,
trading and vessel loading, through its subsidiary, Fulghum Fibres.
The Company’s New England Wood Pellet subsidiary is a leading
producer of bagged wood pellets for the U.S. heating market.
Rentech manufactures and sells nitrogen fertilizer through its
publicly-traded subsidiary, Rentech Nitrogen Partners, L.P. (NYSE:
RNF). Please visit www.rentechinc.com and www.rentechnitrogen.com
for more information.
Rentech, Inc.Julie Dawoodjee Cafarella, 310-571-9800Vice
President of Investor Relations and Communicationsir@rentk.com
Rentech, Inc. (NASDAQ:RTK)
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