The head of Linn Energy LLC (NASDAQ: LINE), Mark Ellis, is eligible for a $6.9 million cash award this year, according to a regulatory filing.
Linn Energy is a MLP hit hard by the more than 70% drop in crude prices and has been exploring strategic options to fix its balance sheet.
The company said in a filing with the U.S. Securities and Exchange Commission (SEC) on Feb. 4 that its board altered its compensation plan to enable the company's executives to earn cash compensation in 2016.
"Retaining key leadership and our talented employees is a top priority for Linn Energy as we engage in this process and maintaining continuity of leadership will help secure the best possible outcome for the company," a company spokesman said on Feb. 5.
Linn's board approved cash incentive awards totaling about $15 million for six executives, including its CEO, Ellis.
The executives must meet certain targets to receive the incentive payments, but those targets were not spelled out in the regulatory filing.
Offering executives financial incentives to stay through tumult, be it a merger or restructuring, is a common practice.
Linn units were trading around $30 in mid-2014 when crude oil was around $100 a barrel. On Feb. 5, the stock closed down 58% at 50 cents per unit. MLPs trade in units, rather than shares.
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