RENTECH, INC. 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.
