Kevin Burdick
ONEOK INC /NEW/About Kevin Burdick
Kevin L. Burdick, age 60, is ONEOK’s Executive Vice President and Chief Enterprise Services Officer (since 2023); previously EVP & Chief Commercial Officer (2022–2023) and EVP & Chief Operating Officer (2017–2022) . Under his tenure in senior leadership, ONEOK executed a multi-year growth strategy, with 2024 operating income rising to ~$5.0B (from ~$4.1B in 2023) and net income to ~$3.1B (from ~$2.7B), while maintaining ~90% fee-based earnings; the annual short-term incentive plan (STIP) for 2024 centered on EPS and ROIC plus safety/environmental metrics and paid at a 183.5% corporate modifier . Burdick’s compensation mix remains heavily performance-based, with long-term equity grants ~80% PSUs (3-year TSR vs peers) and ~20% RSUs, and all officers subject to ownership guidelines (EVP = 4x base salary) with reported compliance .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ONEOK | EVP & Chief Enterprise Services Officer | 2023–present | Oversees enterprise services incl. cybersecurity, IT, optimization and innovation . |
| ONEOK | EVP & Chief Commercial Officer | 2022–2023 | Led commercial liquids and gathering/processing businesses; commercial strategy integration . |
| ONEOK | EVP & Chief Operating Officer | 2017–2022 | Operational leadership for natural gas gathering & processing, pipelines and NGL segments . |
| ONEOK/ONEOK Partners | Senior/Vice President, Natural Gas Gathering & Processing | 2013–2017 | Led G&P operations growth and system optimization . |
External Roles
No external public-company directorships or committee roles disclosed in executive officer bios reviewed .
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | $500,000 | $500,000 | $550,000 |
| Target Bonus % of Salary | 95% | 95% | 95% |
| Actual STIP Paid ($) | $607,100 | $1,043,100 | $1,150,500 |
Performance Compensation
Annual STIP design and 2024 outcome
| Metric | Weight | Target | Actual (2024) | Payout Contribution |
|---|---|---|---|---|
| EPS | 40% | $4.80 | $5.25 (adjusted) | 72.1% of target |
| ROIC | 40% | 12.81% | 13.71% (adjusted) | 72.4% of target |
| TRIR | 10% | 0.40 | 0.31 | 19% of target |
| AREER | 10% | 0.74 | 0.33 | 20% of target |
| Corporate Modifier | — | — | — | 183.5% |
| Individual Modifier (Burdick) | — | — | — | 120% |
2024 EPS/ROIC measurements excluded EnLink/Medallion acquisition impacts per Committee-approved approach to preserve pay-for-performance integrity .
2024 Grants of Plan-Based Awards (long-term and short-term)
| Award | Grant Date | Threshold | Target | Maximum | Units/Value |
|---|---|---|---|---|---|
| RSUs | 2/21/2024 | — | — | — | 4,909 units; $359,977 fair value |
| PSUs (3-yr TSR) | 2/21/2024 | — | 19,637 | 39,274 | $1,682,695 fair value |
| STIP (2024) | — | $0 | $521,800 | $1,304,600 | — |
- Long-term equity mix: ~80% PSUs, ~20% RSUs; 2021 PSU cohort paid 88% of target in Feb 2024 (TSR 44th percentile vs energy peers) .
- PSU peer group includes: Antero Midstream, DT Midstream, Energy Transfer, Enterprise Products Partners, Kinder Morgan, Kinetik Holdings, MPLX, Plains All American, Targa Resources, Western Midstream, Williams (adjusted for transactions) .
Vesting schedules
| Award | Tranche | Vest Date | Units |
|---|---|---|---|
| RSUs | Tranche 1 | Feb 17, 2024 | 8,218 |
| RSUs | Tranche 2 | Feb 23, 2025 | 5,831 |
| RSUs | Tranche 3 | Feb 22, 2026 | 5,044 |
| PSUs (granted 2020–2022) | Cohort A | Feb 19, 2023 | 17,824 |
| PSUs | Cohort B | Feb 17, 2024 | 62,441 |
| PSUs | Cohort C | Feb 23, 2025 | 21,259 |
- RSUs typically vest after ~3 years; PSUs vest after 3 years based on cumulative TSR vs peer group with 0–200% payout; dividend equivalents accrue per plan .
Equity Ownership & Alignment
| Date | Shares Beneficially Owned | % of Class | Notes |
|---|---|---|---|
| Mar 1, 2018 | 37,415 | <1% | — |
| Mar 1, 2021 | 113,149 | <1% | — |
| Mar 1, 2023 | 136,908 | <1% | — |
| Mar 1, 2024 | 157,754 | <1% | — |
| Mar 1, 2025 | 167,306 | <1% | — |
| Unvested/Unearned Holdings at FY 2023 | Count | Market/Payout Value |
|---|---|---|
| RSUs (unvested) | 19,092 | $1,340,623 |
| PSUs (unearned) | 53,014 | $3,722,613 |
- Stock ownership guidelines: EVP must hold ONEOK stock equal to 4x base salary; officers may not sell if below guideline; all officers in compliance for 2024 .
- Hedging/pledging: Hedging, short sales, and margin accounts prohibited; pledging only by CEO-approved exception with strict conditions; company not aware of any pledges by officers/directors .
- Options: No options outstanding or exercised; employees and NEOs currently hold no unexercised options .
Employment Terms
- No individual employment agreements for NEOs; compensation set by independent Committee with Board approval .
- Clawback: NYSE Rule 10D-1 compliant Compensation Recoupment Policy adopted Oct 2, 2023; mandatory recovery of erroneously awarded incentive comp after restatement; discretionary recovery for fraud/negligence-related restatements .
- Change-in-control: Double trigger; lump-sum up to 3x salary+target bonus plus up to 18 months COBRA reimbursement; “net best” excise tax approach; RSUs vest upon qualifying termination post-CIC; PSUs vest at greater of prorated target or actual TSR at CIC (incl. dividend equivalents) .
Potential Post-Employment/CIC Payouts (as disclosed)
| Scenario (as of FY 2023/2024 disclosure) | Cash Severance | Health/Welfare Benefits | RSUs | PSUs | Total |
|---|---|---|---|---|---|
| Death | $475,000 | $53,845 | $893,561 | $1,905,266 | $3,327,672 |
| Termination w/o Cause, Disability, Retirement | $475,000 | $17,468 | $893,561 | $1,905,266 | $3,291,295 |
| Qualifying termination post-CIC | $1,950,000 | $44,789 | $1,340,623 | $3,461,722 | $6,797,134 |
Compensation Structure Analysis
- Year-over-year mix: Burdick’s 2024 salary rose to $550k (+10% vs 2023) and LTI target to $1.8M (+12.5% vs 2023), maintaining an at-risk heavy mix (STIP target unchanged at 95%) .
- STIP calibration: The Committee adjusted EPS/ROIC measurement to exclude late-year acquisitions (EnLink/Medallion), limiting windfall effects and preserving performance integrity .
- LTI rigor: PSU payout for 2021 grant at 88% reflects median-relative TSR performance (44th percentile), avoiding inflated vesting; RSUs maintain multi-year retention .
- Governance features: No tax gross-ups on CIC, robust clawback, hedging/pledging prohibitions, and independent consultant (Meridian) support prudent pay practices .
Related-Party and Risk Indicators
- No significant recurring perquisites; minimal perqs disclosed for NEOs .
- Committee risk assessment notes caps, multi-metric design, clawbacks, and ownership guidelines mitigate excessive risk-taking .
- Say-on-pay support remained strong (95.4% approval in 2024), signaling investor acceptance of pay structures .
Equity Ownership & Deferred Compensation
- NQDC participation: 2023 executive contributions $85,710; registrant contributions $101,023; aggregate balance $1,549,855 (no above-market earnings) .
- Ownership growth: Beneficial ownership increased steadily from 37,415 (2018) to 167,306 (2025), reinforcing alignment .
Investment Implications
- Alignment: High at-risk pay, TSR-based PSUs, and strict ownership/hedging policies align Burdick’s incentives with long-term value creation; 2024 corporate modifier of 183.5% reflects strong performance across EPS/ROIC and safety/environmental KPIs .
- Retention: Multi-year RSU/PSU vesting and meaningful unvested balances ($1.34M RSUs; $3.72M PSUs at FY2023) create retention hooks; CIC protections are standard double-trigger without tax gross-ups, balancing retention and shareholder interests .
- Selling pressure: Ownership guideline compliance and no reported pledging reduce forced-selling risk; absence of options eliminates repricing risk .
- Execution risk: Rapid portfolio expansion (Magellan, Easton pipelines, Medallion, EnLink) increases integration complexity; compensation framework’s acquisition adjustments and multi-metric design suggest governance awareness of integration risks .