Robert R. Shannon
About Robert R. Shannon
Robert R. Shannon, age 36, is Executive Vice President and Chief Accounting Officer (CAO) of Permian Resources (PR), appointed May 31, 2024 following a planned succession from Brent Jensen; he previously served as EVP of Corporate Services since September 2022 and was VP & CAO of Colgate Energy (2016–2022) . He holds a Master in Professional Accounting and a BBA in Business Honors & Accounting from the University of Texas at Austin . Company performance during his tenure includes strong 2024 operational execution (cash from operations $3.4B, Adjusted FCF $1.4B; flaring 1.0%, TRIR 0.57) and TSR outperformance versus peers since the PR merger (9/1/2022–3/31/2025), aligning incentives with shareholder returns .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Permian Resources | EVP, Corporate Services | Sep 2022–May 2024 | Supported integration post-merger; operational/strategic support in upstream accounting and corporate services . |
| Colgate Energy | VP & Chief Accounting Officer | Mar 2016–Sep 2022 | Built accounting function and controls for a fast-growing Permian E&P; prepared for combination with Centennial/PR . |
| Burnett Petroleum | Controller | Prior to 2016 | Led domestic onshore accounting operations . |
| KPMG LLP | Audit Group (Upstream O&G) | Prior to 2016 | Audited upstream companies; strengthened technical accounting and controls experience . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Not disclosed | — | — | No public company board or external governance roles disclosed for Shannon . |
Fixed Compensation
| Component | 2024 | Notes |
|---|---|---|
| Base Salary ($) | 380,000 | Increased from $375,000 in 2023 (+1%) . |
| Target Bonus (% of Salary) | 80% | Annual Incentive Program (AIP) target . |
| Actual AIP Paid ($, for 2024 performance) | 486,400 | Approved in early 2025 based on 2024 results . |
Performance Compensation
Annual Incentive Program (AIP) – 2024 Scorecard Outcomes
| Metric | Weighting | Target | Actual | Assessment/Payout Basis |
|---|---|---|---|---|
| All-in Rate of Return (2/14/24 Strip & Basis) | 55% | Not disclosed | Exceeded | Committee determined above-goal performance . |
| Free Cash Flow per Share | — | $1.50 | $1.64 | Exceeded . |
| LOE + Cash G&A per Boe | — | $6.75 | $6.38 | Exceeded . |
| ESG – Gas flared | — | 2.0% | 1.0% | Outperformed . |
| ESG – Oil spills | — | 0.0038% | 0.002% | Outperformed . |
| ESG – Water spills | — | 0.0045% | 0.002% | Outperformed . |
| ESG – TRIR | — | 0.65 | 0.57 | Outperformed . |
| Strategic Initiatives & Discretionary | 35% | Various | Exceeded | NAV/share growth >10%, Earthstone synergies $250mm vs $175mm target, D&C $815/ft vs $860/ft target, capital deployment and ROC program adjustments . |
Long-Term Incentive Plan (LTIP) – 2024 Grants to Shannon
| Grant Type | Grant Date | Shares/Units (#) | Fair Value ($) | Vesting | Performance Metrics |
|---|---|---|---|---|---|
| Restricted Stock | 2/20/2024 | 27,484 | 396,869 | Time-based vesting over 3 years in substantially equal annual installments . | |
| Performance Stock Units (PSUs) | 2/20/2024 | Target 64,130; Threshold 4,810; Max 192,390 | 1,591,065 | Earned at end of ~3-year period (ends 12/31/2026) . | Payout based on Relative TSR vs performance peer group (XOP included) and Absolute annualized TSR; Relative multiplier up to 200% (≥85th percentile), Absolute multiplier 50–150% (≤0% to >20%) with linear interpolation . |
Outstanding Equity (as of 12/31/2024)
| Category | Detail | Amount |
|---|---|---|
| Unvested Restricted Stock | Vesting schedule: 3/1/2025: 9,161; 9/1/2025: 19,369; 3/1/2026: 9,161; 3/1/2027: 9,162 (Total 46,853) . | |
| PSUs – 2022 tranche | Performance period ends 12/31/2025 | 406,734 (reported at maximum trending above target) . |
| PSUs – 2024 tranche | Performance period ends 12/31/2026 | 192,390 (reported at maximum trending above target) . |
Equity Ownership & Alignment
| Item | Disclosure | Amount / Policy |
|---|---|---|
| Beneficial Ownership – Class A | Shares held | 96,547 (includes 75,571 subject to continued time-based vesting) . |
| Beneficial Ownership – Class C | Shares held | 2,000,000 (paired with equivalent OpCo units) – 2.0% of Class C outstanding . |
| Combined Voting Power | Total shares counted for voting | 2,096,547; “*” indicates less than 1% combined voting power . |
| Stock Ownership Guidelines | Executive VP multiple | 3x base salary; 5-year compliance window; unvested awards excluded; all officers in compliance as of 12/31/2024 . |
| Hedging/Pledging | Policy | Prohibited for directors, officers, employees, agents (no margin/derivatives/pledging/hedging) . |
| Clawback Policy | Restatement-triggered recovery | Adopted Oct 2023; 3-year lookback; applies to incentive-based awards for current/former executive officers . |
Vesting schedules imply periodic release of restricted shares across 2025–2027, a source of routine liquidity needs (tax withholdings) rather than discretionary sales; hedging and pledging are prohibited, reducing misalignment risk .
Employment Terms
| Provision | Terms | Shannon-specific Illustrative Amounts (as of 12/31/2024) |
|---|---|---|
| Employment Agreement | None; at-will employment | Shannon is not party to an employment agreement . |
| Severance Plan (Unrelated to Change in Control) | If terminated without cause/for good reason: health benefits (125% COBRA for 2 years), outplacement, prorated accelerated vesting of time-based equity, prorated PSUs vest after performance period based on actual results . | Total ~$5,230,614; accelerated equity ~$5,158,351; health/outplacement $72,263 . |
| Severance Plan (Change in Control – Double Trigger) | Within 24 months post-CIC and qualifying termination: cash = 2.75x (other NEOs) salary + average AIP (3 yrs), prorated AIP at target, accelerated vesting of all unvested awards at actual performance to termination date, 125% COBRA (2 yrs), outplacement (1 yr); no tax gross-ups . | Total ~$10,993,098; includes salary $1,045,000; cash bonus $1,140,000; accelerated equity $8,735,836; health/outplacement $72,263 . |
| Non-compete / Non-solicit | Not disclosed | — |
| Garden Leave / Consulting | Not disclosed | — |
Performance & Track Record
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | 2,131,265,000* | 3,120,893,000* | 5,000,734,000* |
| EBITDA ($) | 1,492,459,000* | 2,349,901,000* | 3,643,794,000* |
| Net Income ($) | 515,037,000* | 476,306,000* | 984,701,000* |
| Diluted EPS – Continuing Ops ($) | 1.612438* | 1.238098* | 1.446157* |
Values retrieved from S&P Global.*
TSR context: PR’s 2024 TSR was strong versus peer average and XOP, and PR’s TSR has outperformed peers since the merger through 3/31/2025; the AIP/PSU design explicitly ties payouts to Relative and Absolute TSR, reinforcing pay-for-performance alignment .
Compensation Structure Analysis
- Heavy pay-at-risk: Shannon’s 2024 total comp emphasizes equity (PSUs + restricted stock fair value ~$1.99M) and performance cash (AIP $486k) over fixed salary ($380k), with PSUs governed by both Relative and Absolute TSR gates .
- AIP rigor increased: Greater weighting to returns and cost structure; explicit ESG targets (flaring, spills, TRIR) achieved or exceeded, supporting payout integrity and operational safety focus .
- No options/repricings: Company does not plan option awards and disallows repricing without shareholder approval; 2024 maintained PSU/RSU mix for non-CEO NEOs .
- Clawbacks, anti-hedging/pledging, and ownership rules provide strong governance guardrails—no tax gross-ups and double-trigger CIC benefits further align with investor best practices .
Say-on-Pay & Shareholder Feedback
- 2024 say-on-pay support ~80%; committee considered feedback, including treatment of outstanding awards upon non-qualifying separations, and judged broad shareholder support for program design .
Equity Ownership & Vesting Schedule Detail
| Category | Dates | Shares |
|---|---|---|
| Restricted Stock – Unvested | 3/1/2025, 9/1/2025, 3/1/2026, 3/1/2027 | 9,161; 19,369; 9,161; 9,162 . |
| PSUs (2022 grant) | Performance end 12/31/2025 | 406,734 (max trending) . |
| PSUs (2024 grant) | Performance end 12/31/2026 | 192,390 (max trending) . |
These dates signal scheduled vesting/settlement windows and potential selling for tax obligations; hedging/pledging prohibitions reduce misalignment risks .
Employment Terms (Policy References)
- Severance Plan last updated Nov 2022; CIC defined by LTIP; double-trigger required; health/outplacement benefits standard across scenarios .
- No employment agreements; robust stock ownership guidelines; anti-hedging/pledging; clawback policy compliant with NYSE Section 10D .
Investment Implications
- Alignment: Strong pay-for-performance linkage via TSR-based PSUs and AIP metrics (returns, FCF/share, cost, ESG) should sustain discipline around capital efficiency and operational safety; anti-hedging/pledging and clawbacks further align management and shareholders .
- Retention risk: Shannon’s sizable unvested restricted stock and multi-year PSUs (2025–2026 performance periods) create retention hooks; double-trigger CIC economics are meaningful but industry-standard, with no tax gross-ups .
- Trading signals: Upcoming vesting dates (2025–2027) may produce routine share sales for tax withholding; TSR-linked PSUs trending above target suggest confidence in value creation, conditional on sustained TSR vs peer group and absolute TSR thresholds .
- Execution: Company delivered 2024 operational and FCF targets, Earthstone synergies above plan, and lowered cost structure—continuation of these trends under Shannon’s accounting leadership supports quality of earnings and capability to fund returns and growth .