Pay vs Performance Disclosure - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Pay Versus Performance
The table below provides additional information related to compensation for our named executive officers as required by Item 402(v) of Regulation
S-K.
The table includes a new calculated value titled “compensation actually paid” (“CAP”) for the Primary Executive Officer (“PEO”), our CEO, and for the non-PEO
NEOs. It’s important to note the majority of the value displayed as CAP has in fact not been earned or paid and reflects updated values of outstanding equity awards that are still subject to vesting, and in some cases, performance requirements. The table also provides information on our cumulative TSR, the cumulative TSR of the Bloomberg Americas Pipeline Index, GAAP net income and Adjusted EBITDA. YEAR |
SUMMARY COMPENSATION TABLE TOTAL FOR PEO ($) |
COMPENSATION ACTUALLY PAID TO PEO ($) |
AVERAGE SUMMARY COMPENSATION TABLE TOTAL FOR NON-PEO NAMED EXECUTIVE OFFICERS ($) (a) |
AVERAGE COMPENSATION ACTUALLY PAID TO NON-PEO NAMED EXECUTIVE OFFICERS ($) (a) |
VALUE OF INITIAL FIXED $100 INVESTMENT BASED ON: (b) |
NET INCOME ($) in millions |
ADJUSTED EBITDA (c) ($) inmillions |
|||||||||||||||||||||||||
COMPANY TSR ($) |
BLOOMBERG AMERICAS PIPELINE INDEX TSR ($) |
|||||||||||||||||||||||||||||||
2023 |
$ |
17,548,802 |
$ |
18,483,038 |
$ |
4,887,359 |
$ |
5,389,030 |
$ |
190.37 |
$ |
131.11 |
$ |
3,303 |
$ |
6,779 |
||||||||||||||||
2022 |
13,887,596 |
36,717,682 |
4,323,372 |
9,088,871 |
170.05 |
122.58 |
2,117 |
6,418 |
||||||||||||||||||||||||
2021 |
13,759,533 |
32,332,070 |
4,036,788 |
9,626,605 |
127.92 |
106.10 |
1,562 |
5,635 |
||||||||||||||||||||||||
2020 |
12,171,958 |
12,835,709 |
4,007,220 |
4,308,244 |
92.40 |
79.13 |
198 |
5,105 |
||||||||||||||||||||||||
(a) |
The PEO for the disclosure is our CEO Mr. Armstrong. The non-PEO NEOs for 2020 and 2021 include Mr. Dunn, Mr. Zamarin, Mr. Chandler, and Mr. Bennett. The non-PEO NEOs for 2022 and 2023 include Mr. Dunn, Mr. Zamarin, Mr. Porter, and Mr. Wilson. |
(b) |
The dollar amount represents the value of an initial $100 investment on December 31, 2019, assuming reinvestment of all dividends. |
(c) |
Adjusted EBITDA is a non-GAAP measure. A reconciliation of these non-GAAP financial measures to their nearest GAAP comparable financial measure is included in the appendix. |
The following tables detail the adjustments to the SCT total compensation value to reach the calculated CAP result. The equity award values are calculated in accordance with FASB ASC Topic 176 for each
year-end
value. For awards that vested within the applicable calendar year, the actual vesting date value is applied. The addition to the SCT value for pension benefits reflect the actual service cost applicable for the calendar year as opposed to the change in present value of the pension benefit used in the SCT. No prior service cost is included as there were no applicable plan amendments during this time. The PEO calculation of CAP:
YEAR |
SCT TOTAL COMP |
DEDUCTIONS FROM SCT TOTAL FOR EQUITY AWARDS |
DEDUCTIONS FROM SCT FOR PENSION BENEFITS |
ADDITIONS TO SCT TOTAL FOR EQUITY AWARDS |
ADDITIONS TO SCT FOR PENSION BENEFITS |
COMPENSATION ACTUALLY PAID |
||||||||||||||||||
2023 |
$ |
17,548,802 |
$ |
(9,999,977 |
) |
$ |
(3,453,819 |
) |
$ |
13,576,265 |
$ |
811,767 |
$ |
18,483,038 |
||||||||||
2022 |
13,887,596 |
(9,300,000 |
) |
— |
31,567,125 |
562,961 |
36,717,682 |
|||||||||||||||||
2021 |
13,759,533 |
(9,000,015 |
) |
— |
26,902,316 |
670,236 |
32,332,070 |
|||||||||||||||||
2020 |
12,171,958 |
(7,500,010 |
) |
(943,581 |
) |
8,421,513 |
685,829 |
12,835,709 |
||||||||||||||||
The following details the sources of the CAP additions related to the PEO’s Equity Awards:
YEAR |
FAIR VALUE OF CURRENT YEAR AWARDS OUTSTANDING AT YEAR END |
CHANGE IN VALUE OF PRIOR YEARS’ AWARDS OUTSTANDING AT YEAR END |
CHANGE IN VALUE OF PRIOR YEARS’ AWARDS THAT VESTED IN YEAR |
CHANGE IN VALUE OF PRIOR YEARS’ AWARDS THAT FAILED TO MEET VESTING CONDITIONS |
VALUE OF DIVIDENDS OR OTHER EARNINGS PAID ON EQUITY AWARDS NOT OTHERWISE REFLECTED IN FAIR VALUE OR TOTAL COMPENSATION |
EQUITY VALUE INCLUDED IN CAP |
||||||||||||||||||
2023 |
$ |
11,424,080 |
$ |
2,990,993 |
$ |
(1,565,280 |
) |
$ |
— |
$ |
726,471 |
$ |
13,576,265 |
|||||||||||
2022 |
10,498,900 |
18,907,561 |
1,709,315 |
— |
451,348 |
31,567,125 |
||||||||||||||||||
2021 |
10,126,728 |
16,198,513 |
332,207 |
— |
244,868 |
26,902,316 |
||||||||||||||||||
2020 |
8,504,268 |
1,767,331 |
(2,062,071 |
) |
— |
211,985 |
8,421,513 |
|||||||||||||||||
Note:
percent increase in the stock price from December
31, 2020, to December
30, 2022 and increases in the estimated performance-based RSU results of outstanding awards. Performance-based RSUs make up the largest component of the PEO’s annual equity award.
The
Non-PEO
NEOs calculation of CAP: YEAR |
SCT TOTAL COMP |
DEDUCTIONS FROM SCT TOTAL FOR EQUITY AWARDS |
DEDUCTIONS FROM SCT FOR PENSION BENEFITS |
ADDITIONS TO SCT TOTAL FOR EQUITY AWARDS |
ADDITIONS TO SCT FOR PENSION BENEFITS |
COMPENSATION ACTUALLY PAID |
||||||||||||||||||
2023 |
$ |
4,887,359 |
$ |
(2,850,000 |
) |
$ |
(577,304 |
) |
$ |
3,691,176 |
$ |
237,800 |
$ |
5,389,030 |
||||||||||
2022 |
4,323,372 |
(2,600,006 |
) |
— |
7,220,623 |
144,882 |
9,088,871 |
|||||||||||||||||
2021 |
4,036,788 |
(2,275,002 |
) |
(67,160 |
) |
7,718,867 |
213,113 |
9,626,605 |
||||||||||||||||
2020 |
4,007,220 |
(2,350,001 |
) |
(258,967 |
) |
2,688,674 |
221,318 |
4,308,244 |
||||||||||||||||
The following details the sources of the CAP additions related to the
Non-PEO
NEO’s Equity Awards: YEAR |
FAIR VALUE OF CURRENT YEAR AWARDS OUTSTANDING AT YEAR END |
CHANGE IN VALUE OF PRIOR YEARS’ AWARDS OUTSTANDING AT YEAR END |
CHANGE IN VALUE OF PRIOR YEARS’ AWARDS THAT VESTED IN YEAR |
CHANGE IN VALUE OF PRIOR YEARS’ AWARDS THAT FAILED TO MEET VESTING CONDITIONS |
VALUE OF DIVIDENDS OR OTHER EARNINGS PAID ON EQUITY AWARDS NOT OTHERWISE REFLECTED IN FAIR VALUE OR TOTAL COMPENSATION |
EQUITY VALUE INCLUDED IN CAP |
||||||||||||||||||
2023 |
$ |
3,246,052 |
$ |
588,212 |
$ |
(373,961 |
) |
$ |
— |
$ |
230,873 |
$ |
3,691,176 |
|||||||||||
2022 |
2,919,316 |
3,759,353 |
410,716 |
— |
131,238 |
7,220,623 |
||||||||||||||||||
2021 |
2,546,120 |
4,926,525 |
130,284 |
— |
115,937 |
7,718,867 |
||||||||||||||||||
2020 |
2,605,503 |
363,249 |
(439,842 |
) |
— |
159,764 |
2,688,674 |
|||||||||||||||||
non-PEO
NEOs for 2020 and 2021 include Mr. Dunn, Mr. Zamarin, Mr. Chandler, and Mr. Bennett. The non-PEO
NEOs for 2022 and 2023 include Mr. Dunn, Mr. Zamarin, Mr. Porter, and Mr. Wilson.
The PEO calculation of CAP:
YEAR |
SCT TOTAL COMP |
DEDUCTIONS FROM SCT TOTAL FOR EQUITY AWARDS |
DEDUCTIONS FROM SCT FOR PENSION BENEFITS |
ADDITIONS TO SCT TOTAL FOR EQUITY AWARDS |
ADDITIONS TO SCT FOR PENSION BENEFITS |
COMPENSATION ACTUALLY PAID |
||||||||||||||||||
2023 |
$ |
17,548,802 |
$ |
(9,999,977 |
) |
$ |
(3,453,819 |
) |
$ |
13,576,265 |
$ |
811,767 |
$ |
18,483,038 |
||||||||||
2022 |
13,887,596 |
(9,300,000 |
) |
— |
31,567,125 |
562,961 |
36,717,682 |
|||||||||||||||||
2021 |
13,759,533 |
(9,000,015 |
) |
— |
26,902,316 |
670,236 |
32,332,070 |
|||||||||||||||||
2020 |
12,171,958 |
(7,500,010 |
) |
(943,581 |
) |
8,421,513 |
685,829 |
12,835,709 |
||||||||||||||||
The following details the sources of the CAP additions related to the PEO’s Equity Awards:
YEAR |
FAIR VALUE OF CURRENT YEAR AWARDS OUTSTANDING AT YEAR END |
CHANGE IN VALUE OF PRIOR YEARS’ AWARDS OUTSTANDING AT YEAR END |
CHANGE IN VALUE OF PRIOR YEARS’ AWARDS THAT VESTED IN YEAR |
CHANGE IN VALUE OF PRIOR YEARS’ AWARDS THAT FAILED TO MEET VESTING CONDITIONS |
VALUE OF DIVIDENDS OR OTHER EARNINGS PAID ON EQUITY AWARDS NOT OTHERWISE REFLECTED IN FAIR VALUE OR TOTAL COMPENSATION |
EQUITY VALUE INCLUDED IN CAP |
||||||||||||||||||
2023 |
$ |
11,424,080 |
$ |
2,990,993 |
$ |
(1,565,280 |
) |
$ |
— |
$ |
726,471 |
$ |
13,576,265 |
|||||||||||
2022 |
10,498,900 |
18,907,561 |
1,709,315 |
— |
451,348 |
31,567,125 |
||||||||||||||||||
2021 |
10,126,728 |
16,198,513 |
332,207 |
— |
244,868 |
26,902,316 |
||||||||||||||||||
2020 |
8,504,268 |
1,767,331 |
(2,062,071 |
) |
— |
211,985 |
8,421,513 |
|||||||||||||||||
Note:
percent increase in the stock price from December
31, 2020, to December
30, 2022 and increases in the estimated performance-based RSU results of outstanding awards. Performance-based RSUs make up the largest component of the PEO’s annual equity award.
The
Non-PEO
NEOs calculation of CAP: YEAR |
SCT TOTAL COMP |
DEDUCTIONS FROM SCT TOTAL FOR EQUITY AWARDS |
DEDUCTIONS FROM SCT FOR PENSION BENEFITS |
ADDITIONS TO SCT TOTAL FOR EQUITY AWARDS |
ADDITIONS TO SCT FOR PENSION BENEFITS |
COMPENSATION ACTUALLY PAID |
||||||||||||||||||
2023 |
$ |
4,887,359 |
$ |
(2,850,000 |
) |
$ |
(577,304 |
) |
$ |
3,691,176 |
$ |
237,800 |
$ |
5,389,030 |
||||||||||
2022 |
4,323,372 |
(2,600,006 |
) |
— |
7,220,623 |
144,882 |
9,088,871 |
|||||||||||||||||
2021 |
4,036,788 |
(2,275,002 |
) |
(67,160 |
) |
7,718,867 |
213,113 |
9,626,605 |
||||||||||||||||
2020 |
4,007,220 |
(2,350,001 |
) |
(258,967 |
) |
2,688,674 |
221,318 |
4,308,244 |
||||||||||||||||
The following details the sources of the CAP additions related to the
Non-PEO
NEO’s Equity Awards: YEAR |
FAIR VALUE OF CURRENT YEAR AWARDS OUTSTANDING AT YEAR END |
CHANGE IN VALUE OF PRIOR YEARS’ AWARDS OUTSTANDING AT YEAR END |
CHANGE IN VALUE OF PRIOR YEARS’ AWARDS THAT VESTED IN YEAR |
CHANGE IN VALUE OF PRIOR YEARS’ AWARDS THAT FAILED TO MEET VESTING CONDITIONS |
VALUE OF DIVIDENDS OR OTHER EARNINGS PAID ON EQUITY AWARDS NOT OTHERWISE REFLECTED IN FAIR VALUE OR TOTAL COMPENSATION |
EQUITY VALUE INCLUDED IN CAP |
||||||||||||||||||
2023 |
$ |
3,246,052 |
$ |
588,212 |
$ |
(373,961 |
) |
$ |
— |
$ |
230,873 |
$ |
3,691,176 |
|||||||||||
2022 |
2,919,316 |
3,759,353 |
410,716 |
— |
131,238 |
7,220,623 |
||||||||||||||||||
2021 |
2,546,120 |
4,926,525 |
130,284 |
— |
115,937 |
7,718,867 |
||||||||||||||||||
2020 |
2,605,503 |
363,249 |
(439,842 |
) |
— |
159,764 |
2,688,674 |
|||||||||||||||||
The four metrics on the following table represent an unranked list of the most important performance measures used by the Company to align compensation with Company performance.
MOST IMPORTANT PERFORMANCE METRICS IN 2023 |
Adjusted EBITDA |
Available Funds From Operations (AFFO) Per Share |
Relative Total Shareholder Return (TSR) |
Return on Capital Employed (ROCE) |
non-GAAP
measure. A reconciliation of these non-GAAP
financial measures to their nearest GAAP comparable financial measure is included in the appendix.