Western Midstream announces executive retirement and consulting role

Published 18/02/2025, 23:16
Updated 18/02/2025, 23:18
Western Midstream announces executive retirement and consulting role

In a recent filing with the Securities and Exchange Commission, Western Midstream Partners, LP (NYSE:WES), a $15.7 billion market cap company that has delivered an impressive 52.5% return over the past year, disclosed the retirement of a key executive and the details of his subsequent consulting arrangement with the company. According to InvestingPro analysis, WES maintains a strong financial health score and is currently trading near its Fair Value. Robert W. Bourne, the Senior Vice President and Chief Commercial Officer of Western Midstream Holdings, LLC, which is the general partner of Western Midstream Partners, has entered into a Retirement Agreement with WES, effective today.

According to the 8-K filing, Mr. Bourne will transition from his current role to serve as an advisor until March 3, 2025, which has been determined as his official retirement date. During this advisory period, he will continue to receive his existing base salary and remain eligible for a full bonus under the company’s Annual Incentive Plan for the year 2024, contingent upon meeting performance conditions. The company’s strong financial position, with $2.2 billion in EBITDA and a P/E ratio of 10.55, suggests it’s well-positioned to manage this transition.

Following his retirement, Mr. Bourne will embark on a six-month consulting term with WES starting March 4, 2025, with a monthly consulting fee of $77,250. The agreement includes a general release of claims in favor of WES and affiliated parties.

The retirement package for Mr. Bourne includes various benefits, such as a pro rata target bonus for 2025, pro rata vesting of his outstanding time-vested equity awards, and eligibility for full vesting of his Total (EPA:TTEF) Unitholder Return and Return on Assets performance awards. Additionally, he will receive a new time-vested award valued at approximately $2.1 million, vesting over two years, and performance-based TUR and ROA awards each with a target value of $250 thousand.

Furthermore, Mr. Bourne will benefit from a contribution to the Western Midstream Services LLC Non-Qualified Deferred Compensation Plan for the 2024 plan year and continued participation in the Partnership’s life, medical, and dental plans at the same rates for two years post-retirement. The company has demonstrated strong shareholder returns, maintaining dividend payments for 13 consecutive years with a current yield of 8.62%. For detailed analysis and additional insights, visit InvestingPro, where you’ll find 12 more exclusive ProTips and comprehensive financial metrics.

The Retirement Agreement also encompasses confidentiality, non-solicitation, mutual non-disparagement, and non-competition covenants, with the non-competition clause extending for two years after retirement and the supplier non-solicitation for one year.

The details of the Retirement Agreement will be fully disclosed in WES’s upcoming Quarterly Report on Form 10-Q for the quarter ending March 31, 2025. This announcement is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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