Friday Night Lights

Nothing like a late summer Friday afternoon 8-k.

These guys are getting paid. I like that they have to buy shares though. Can’t wait to see the details of the new equity compensation plan.

Nice parachute in there too.

On August 8, 2019, Texas Pacific Land Trust (the “Trust”) entered into employment agreements (the “Agreements”) with Tyler Glover, its General Agent and Chief Executive Officer (the “Glover Agreement”) and Robert Packer, its General Agent and Chief Financial Officer (the “Packer Agreement”). The Agreements are effective as of July 1, 2019. Pursuant to the Agreements, Mr. Glover will continue to serve as General Agent and Chief Executive Officer of the Trust, and Mr. Packer will continue to serve as General Agent and Chief Financial Officer of the Trust. Each officer will receive a base salary of $800,000 per annum, subject to annual review, and be eligible for an annual cash bonus of up to 300% of such base salary for achievement of specified performance targets, as established by the Nominating, Compensation and Governance Committee of the Trust. Until the Trust establishes an equity compensation plan, Mr. Glover and Mr. Packer are required to use at least 25% of their cash bonuses (net of estimated taxes) to purchase shares of the Trust’s common stock. The term of each Agreement ends on December 31, 2020, with automatic one (1) year extensions unless notice not to renew is given by either party at least 120 days prior to the relevant end date.

12 thoughts on “Friday Night Lights

  1. Nice to see the two executives officers will have to buy shares with 25% of their bonus money. One of my big objections has been the lack of ownership by these two gents. Assume they max the bonus, that means 450k in stock they will be required to buy. (I assumed usual tax brackets.). And its until 2020 at least. This is great to see a plan for real skin in the game. In a few years they will have more shares than me….as they should given their positions.

    I do cringe at the cryptic statement, “Until there is an equity compensation plan”, and wonder what that means. The Trust cannot give awards of options, and I don’t want to see TPL purchased shares just given to them as incentives. Let them buy shares like all other shareholders.

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  2. I don’t think that the committee has any input to the current running of the business. This has to be a Norris/Barry decision only and I want to puke. $800K + 300% on incentives that is out of their control is sick. Most of the income is royalties and leases, so what can they do to earn it?

    They are making sure that they can’t be fired as soon as the committee’s results are in.

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  3. These guys continue to steal other people’s money. I am sitting on the sidelines and waiting for positive developments – which I think will take a while – legal fees will continue to be huge as I don’t expect that the two current trustees will give up a seat and anything less would and should be challenged.

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    • I hope that as soon as the first monthly report comes out, we will see a nice pop to the share price. I hope the monthly reports will provide enough detail that we aren’t having to read between the lines, as all of the previous reports have been. The Blogger said it best, reading the land purchases, etc was absolutely cryptic and having to go back between the 6 month and 3 month, subtracting, etc when they could have easily just spelled that out. I hope the monthly reports will be spelled out.

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      • I’m only expecting that the monthly report will have to do with progress, or lack thereof, on the committee’s work on governance, not the operation of the trust itself. I think that was made clear with the obscene contract they just gave the two idiots running operations. They should have been made to not do anything while the committee was at work.

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