Shannon Slocum
President – Eastern Hemisphere at HAL
Executive
About Shannon Slocum
J. Shannon Slocum is President – Eastern Hemisphere at Halliburton, appointed effective March 13, 2023; he is age 52 per the company’s NEO table . Halliburton delivered 2024 revenue of $22.9B with 6% YoY growth, generated operating cash flow of $3.865B, capex of $1.442B, and free cash flow of $2.646B; 2024 ROCE was 16.1%, net income was $2,516M, and TSR translated an initial $100 investment to $120.56 over the year . Slocum’s compensation approach ties pay to NOPAT, Asset Turns, and strategic metrics annually (80% financial/20% non-financial), and to three‑year relative ROCE with a TSR modifier in long-term incentives, reflecting a pay-for-performance orientation .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Halliburton | President – Eastern Hemisphere | Appointed Mar 13, 2023 – Present | Senior leadership of Eastern Hemisphere operations during period of sustained international growth focus |
Fixed Compensation
| Metric | FY 2024 |
|---|---|
| Base Salary ($) | $800,000 |
| Target Annual Bonus – Threshold (% of Salary) | 35% |
| Target Annual Bonus – Target (% of Salary) | 110% |
| Target Annual Bonus – Maximum (% of Salary) | 220% |
| Actual Annual Incentive Paid ($) | $444,032 |
Performance Compensation
Annual Performance Pay Plan – Structure and Metrics
| Measure | Weight | Rationale |
|---|---|---|
| Net Operating Profit After Taxes (NOPAT) | 60% | Emphasizes free cash flow and capital discipline |
| Asset Turns | 20% | Capital efficiency and discipline |
| GHG Emissions Reduction Performance | 10% | Aligns to sustainable energy priorities |
| Our People Performance | 10% | Aligns to talent and execution priorities |
| Payout Component | FY 2024 Result |
|---|---|
| Annual Performance Pay Plan Cash Award ($) | $444,032 |
Long-Term Incentives – 2024 Grants (PUP and Restricted Stock)
| Component | Grant Date | Threshold | Target | Maximum | Grant Date Fair Value ($) |
|---|---|---|---|---|---|
| PUP – Cash Opportunity (Slocum) | N/A (2024 cycle) | $321,913 | $1,287,650 | $2,575,300 | N/A |
| PUP – Share Opportunity (Slocum) | 1/2/2024 | 8,942 sh | 35,768 sh | 71,536 sh | $1,291,940 |
| Restricted Stock (time-based) | 1/2/2024 | — | 30,658 sh | — | $1,107,367 |
Notes:
- PUP performance metric is three‑year relative ROCE versus a defined Performance Peer Group, capped at target if HAL’s average ROCE is negative; a relative TSR modifier adjusts payout ±25% with specific quartile multipliers .
- Restricted stock generally vests in equal annual installments over five years; Slocum’s 4/27/2022 award vests 100% at three years .
2024 Option Exercises and Stock Vested
| Item | FY 2024 |
|---|---|
| Shares Acquired on Vesting (#) | 41,497 |
| Value Realized on Vesting ($) | $1,313,976 |
Equity Ownership & Alignment
Beneficial Ownership (as of March 10, 2025)
| Item | Amount |
|---|---|
| Shares Beneficially Owned | 192,551 |
| Options Eligible to Purchase within 60 Days | 19,694 |
| Percent of Class | <1% |
Outstanding Stock Options (Exercisable)
| Grant Date | Exercisable (#) | Exercise Price ($) | Expiration Date |
|---|---|---|---|
| 1/4/2016 | 3,882 | 34.48 | 1/4/2026 |
| 1/3/2017 | 3,722 | 55.68 | 1/3/2027 |
| 1/2/2018 | 12,090 | 49.61 | 1/2/2028 |
Restricted Stock Outstanding (Not Vested)
| Grant Date | Not Vested (#) | Market Value ($) | Vesting Terms |
|---|---|---|---|
| 1/4/2021 | 18,462 | $501,982 | 5-year equal installments |
| 1/3/2022 | 13,221 | $359,479 | 5-year equal installments |
| 4/27/2022 | 27,824 | $756,535 | 100% at 3 years (special) |
| 1/3/2023 | 16,791 | $456,547 | 5-year equal installments |
| 1/2/2024 | 30,658 | $833,591 | 5-year equal installments |
Performance Shares Outstanding (Unearned)
| Grant Date | Unearned (#) | Market/Payout Value ($) | Performance Period |
|---|---|---|---|
| 1/3/2023 | 7,293 | $198,297 | 3-year (relative ROCE + TSR modifier) |
| 1/2/2024 | 35,768 | $972,532 | 3-year (relative ROCE + TSR modifier) |
Ownership Policy, Hedging/Pledging
- Executive ownership guideline: direct reports to CEO must own ≥3× base salary; as of Dec 31, 2024, all NEOs met requirements .
- Hedging and pledging of Halliburton securities are prohibited for Directors and executive officers .
Trading Arrangements (Insider Selling Pressure)
| Reporting Officer | Title | Action | Plan Adoption Date | Plan End Date | Shares Covered | Rule 10b5‑1? |
|---|---|---|---|---|---|---|
| Slocum, J. Shannon | President – Eastern Hemisphere | Plan Adoption | 8/07/2025 | 8/14/2026 | 39,100 | Yes |
Employment Terms
Employment Agreement Highlights
- Contains substantial non‑compete and non‑solicitation provisions post‑separation .
- Upon termination by employee for good reason, death, disability, retirement, or termination by Company other than for cause/fiduciary violation: all restrictions on restricted stock/units lapse; lump sum cash severance equals two years of base salary .
Change‑in‑Control Mechanics (Double Trigger)
- Awards: options become fully vested/exercisable; restrictions on restricted stock lapse; performance awards pay at target; cash awards vest and pay at vested value upon Qualifying Termination during specified period around change‑in‑control .
- Annual Plan/PUP: target awards payable without proration upon Qualifying Termination during cycle; earned amounts payable if CIC occurs after cycle end but before payment .
Post‑Termination and Change‑in‑Control – Slocum Specific Amounts (as of Dec 31, 2024)
| Payment Element | Termination w/o Cause ($) | Change‑in‑Control with Qualifying Termination ($) |
|---|---|---|
| Severance | $1,600,000 | $1,600,000 |
| Restricted Stock | $2,908,134 | $2,908,134 |
| Performance Cash | $1,218,433 | $1,557,650 |
| Performance Shares | $912,741 | $1,170,840 |
| Nonqualified Plans | $1,772,647 | $1,772,647 |
| Total | $6,280,781 | $9,009,271 |
Clawback and Governance Protections
- Executive clawback policy compliant with NYSE Section 303A.14; no restatements in last fiscal year .
- Governance practices include no single‑trigger vesting upon change‑in‑control, no excise tax gross‑ups, no option repricing, and no hedging/pledging by executives/Directors .
Nonqualified Deferred Compensation – Slocum (FY 2024)
| Plan | 01/01/24 Balance ($) | Registrant Contributions in 2024 ($) | Aggregate Earnings in 2024 ($) | Aggregate Distributions ($) | 12/31/24 Balance ($) |
|---|---|---|---|---|---|
| SERP | $308,000 | $478,000 | $15,713 | — | $801,713 |
| Benefit Restoration | $85,436 | $31,850 | $5,123 | — | $122,409 |
| Elective Deferral | $881,267 | — | $136,260 | $169,002 | $848,525 |
| Total | $1,274,703 | $509,850 | $157,096 | $169,002 | $1,772,647 |
Investment Implications
- Alignment: High share of at‑risk pay (NEO mix: ~83% at‑risk, ~65% long‑term) tied to NOPAT/Asset Turns and three‑year relative ROCE with TSR modifier indicates strong linkage of Slocum’s incentives to cash generation, capital discipline, and shareholder returns .
- Retention risk: Two‑times base salary severance and double‑trigger protections reduce abrupt departure risk; material unvested RS/PS positions (RS 107k shares; PS 43k shares) create meaningful retention hooks through 2026–2028 cycles .
- Trading signals: Adoption of a Rule 10b5‑1 plan covering 39,100 shares through Aug 2026 suggests pre‑scheduled selling, potentially adding regular insider supply; monitor Form 4s and execution cadence against vesting dates .
- Governance risk mitigants: Prohibitions on hedging/pledging and clawback compliance reduce misalignment and reputational risk; absence of option repricing or tax gross‑ups is shareholder‑friendly .
- Performance backdrop: 2024 financials (6% revenue growth to $22.9B, $2.646B FCF, ROCE 16.1%) support incentive payout outcomes and strategic emphasis on international growth—relevant to Slocum’s region remit .