James Lebeck
SM EnergyAbout James Lebeck
James B. Lebeck is Executive Vice President – Corporate Development and General Counsel at SM Energy; age 44 as of March 24, 2025, with tenure spanning SVP & General Counsel (Jan 2023), EVP & General Counsel (Feb 2024), and EVP – Corporate Development & General Counsel (Sept 2024) . His credentials include prior senior legal roles at Encino Energy and earlier practice at Davis Graham & Stubbs LLP and Vinson & Elkins LLP, plus a federal appellate clerkship; formal degree details are not disclosed . Compensation is tied to rigorous STIP metrics (cash flow, reserves, F&D costs, sustainability, production, operating costs) and LTIP metrics (adjusted free cash flow, absolute and relative TSR, sustainability), with strong pay-for-performance design and clawbacks .
Company performance context (during Lebeck’s tenure)
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Revenues ($USD) | $2,258,789,000* | $2,555,285,000* |
| EBITDA ($USD) | $1,677,387,000* | $1,885,000,000* |
Values retrieved from S&P Global.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| SM Energy | EVP – Corporate Development & General Counsel | Sept 2024–present | Leads corporate development and legal; risk oversight via ERM/FRM committees |
| SM Energy | EVP & General Counsel | Feb 2024–Sept 2024 | Senior legal leadership; governance and sustainability oversight interface |
| SM Energy | SVP & General Counsel | Jan 2023–Feb 2024 | Rebuilt legal function; supported capital returns/transactions |
| Encino Energy | VP & Chief Legal Officer | 2018–2023 | Led legal/compliance for private E&P; transaction execution |
| SM Energy | Deputy General Counsel (roles of increasing responsibility) | 2011–2018 | Supported operations and transactions; internal legal leadership |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| U.S. Court of Appeals for the Tenth Circuit | Judicial Clerk | Not disclosed (prior to 2011) | Federal appellate clerkship |
| Davis Graham & Stubbs LLP | Attorney | Not disclosed (prior to 2011) | Corporate/energy law practice |
| Vinson & Elkins LLP | Attorney | Not disclosed (prior to 2011) | Corporate/energy law practice |
Fixed Compensation
| Item | 2023 | 2024 |
|---|---|---|
| Base Salary Paid ($) | $396,923 | $444,141 |
| Target Bonus (% of Base) | 75% | 80% (prorated to 79% due to promotion timing) |
| STIP Multiplier | 1.65x | 1.31x |
| Actual STIP Payout ($) | $491,100 | $459,641 |
Stock awards and grant values
| Item | 2023 | 2024 |
|---|---|---|
| LTIP Grant Value ($) | $1,000,016 | $1,600,001 |
| Hire RSUs (shares, grant date) | 14,698 RSUs (Jan 23, 2023) | — |
Performance Compensation
STIP metrics and outcomes (2024)
| Performance Measure | Weight | Threshold | Target | Max | Actual | Weighted STIP Multiplier |
|---|---|---|---|---|---|---|
| Cash Flow ($mm, adj. FCF basis) | 25% | 1,453.00 | 1,720.00 | 2,141.00 | 1,858.00 | 0.35 |
| Proved Developed Reserve Additions (MMBOE, adj. FCF basis) | 20% | 75.50 | 89.40 | 111.30 | 94.00 | 0.26 |
| Finding & Development Costs ($/BOE) | 15% | 15.44 | 13.38 | 10.09 | 12.35 | 0.20 |
| Sustainability (TRIR, spills, GHG/methane intensity) | 15% | 0.85 | 1.00 | 1.25 | 0.90 | 0.10 |
| Production Volume (MMBOE, adj. FCF basis) | 15% | 48.50 | 57.40 | 71.50 | 59.10 | 0.17 |
| Cash Operating Costs ($/BOE) | 10% | 14.49 | 12.56 | 9.47 | 11.48 | 0.14 |
| Initial Quantitative Multiplier | — | — | — | — | — | 1.21 |
| Qualitative Inventory Modifier | — | — | — | — | — | +0.10 (303 MMBOE added vs 80 target) |
| Absolute TSR Modifier | — | — | — | — | +2% TSR (no impact) | — |
| Final STIP Pool Multiplier | — | — | — | — | — | 1.31 |
LTIP metrics and outcomes (recent performance periods)
| LTIP Period | Metric (weight) | Threshold | Target | Max | Actual | Payout Multiplier |
|---|---|---|---|---|---|---|
| 2021–2024 | Free Cash Flow (25%) | $300mm | $1.0bn | $1.7bn | $1.99bn | 200% |
| 2021–2024 | Net Debt/Adj. EBITDAX (25%) | 2.5x | 1.5x | 1.0x | 0.60x | 200% |
| 2021–2024 | Sustainability (25%) | See sub-metrics | See sub-metrics | See sub-metrics | Mixed (GHG - 13% reduction; safety/spills below target) | 76% |
| 2021–2024 | Absolute TSR (25%) | +5% | +10% | +15% | +28% | 200% |
| 2021–2024 | Final LTIP Multiplier | — | — | — | — | 1.69x |
| 2020–2023 | Free Cash Flow (40%) | $225mm (Thr) $450mm (Tgt) $675mm (Max) | — | — | $1.677bn | 200% |
| 2020–2023 | Net Debt/Adj. EBITDAX (40%) | 3.0x (Thr) 2.0x (Tgt) 1.5x (Max) | — | — | 0.74x | 200% |
| 2020–2023 | ESG (20%) | See sub-metrics | See sub-metrics | See sub-metrics | ~Target | 105% |
| 2020–2023 | Final LTIP Multiplier | — | — | — | — | 1.81x |
LTIP design currently in effect
- PSU metrics and weights: adjusted free cash flow (25%), absolute TSR (25%), relative TSR (25%), sustainability (GHG intensity 10%, safety 10%, spills 5%) over three years; negative absolute TSR caps payout at target; above-median relative TSR required for target payout .
Equity Ownership & Alignment
Beneficial ownership (common shares)
| As of | Shares Beneficially Owned | % of Outstanding |
|---|---|---|
| Mar 24, 2024 | 655 shares | <1% |
| Mar 24, 2025 | 532 shares | <1% |
Unvested equity holdings (RSUs & PSUs)
| As of | RSUs | PSUs | Vested PSUs |
|---|---|---|---|
| Mar 24, 2024 | 30,506 | 16,707 | — (no PSUs vest until July 1, 2025/2026) |
| Mar 24, 2025 | 43,559 | 35,417 | — (vesting dates per table below) |
Vesting schedules
| Award Type | Grant date | Vesting/Performance period | Vest/Settlements |
|---|---|---|---|
| RSUs | Jan 23, 2023 (14,698 shares) | Time-based | 1/3 annually over 3 years; settle in stock |
| RSUs | Annual grants (e.g., July 1 cycle) | Time-based | 1/3 annually over 3 years; settle in stock |
| PSUs | Jul 1, 2022 | 3-year performance | Vest July 1, 2025 (shares settled per final payout factor) |
| PSUs | Jul 1, 2023 | 3-year performance | Vest July 1, 2026 |
| PSUs | Oct 1, 2024 | 3-year performance | Vest July 1, 2027 |
Ownership alignment and policies
- Executive stock ownership guideline: EVP at 3x annual base salary; RSUs count toward compliance, PSUs excluded .
- Hedging and pledging prohibited; pre-clearance required; no standing/limit orders except approved 10b5-1 plans .
Employment Terms
| Term | Details |
|---|---|
| Employment agreement | At-will; no written employment contract |
| Clawback policy | Adopted July 27, 2023; mandatory recovery of incentive comp after restatement, regardless of fault; conforms to SEC/NYSE rules |
| Change-of-control (CoC) structure | Double trigger; severance if termination without cause or for good reason within 2.5 years post-CoC; components include 200% of base salary + target STIP, pro-rata target STIP, and 24 months of benefits; no excise tax gross-up (benefits may be cut to avoid 4999 tax if net after-tax improves) |
| CoC payout illustrations (Lebeck) | See table below |
CoC economics (illustrative payouts)
| As-of Date | Base Salary ($) | Cash Bonus ($) | Accelerated Vesting ($) | Continued Benefits ($) | Total ($) |
|---|---|---|---|---|---|
| Dec 31, 2023 (legacy agreements) | $860,000 | $967,500 | $1,681,201 | $53,191 | $3,561,892 |
| Dec 31, 2024 (current agreements) | $1,123,375 | $1,258,180 | $2,988,375 | $58,027 | $5,427,957 |
Deferred compensation
| Item (2024) | Amount ($) |
|---|---|
| Executive contributions | $39,280 |
| Company match | $29,460 |
| Aggregate earnings | $10,867 |
| Aggregate balance (FYE) | $79,607 |
Compensation Structure Notes
- Pay-for-performance: large variable mix; CEO metric caps apply to absolute TSR; EVP bonuses reduced if absolute TSR negative beyond threshold; independent consultant FW Cook retained; program reviewed for risk .
- Short-term incentive (STIP): adjusted free cash flow modifier, absolute TSR modifier; metrics set first quarter, not modified for Uinta acquisition in 2024; Lebeck STIP target increased from 75% (2023) to 80% (2024) with proration .
- Long-term incentive (LTIP): mixture of PSUs and RSUs (50/50 for non-CEO); PSU metrics unchanged in 2024; RSUs generally approved in June, granted July 1; PSU grants delayed to Oct 1, 2024 to incorporate Uinta targets .
Investment Implications
- Alignment is strong: explicit ownership guidelines, clawbacks, and prohibition of hedging/pledging mitigate misalignment risk; compensation heavily tied to cash flow and TSR, which supports shareholder-centric outcomes .
- Retention risk managed via double-trigger CoC severance; updated 2024 agreements raise Lebeck’s CoC coverage to ~$5.43M total, offering continuity amid SM–Civitas transaction dynamics .
- Near-term selling pressure: RSU tranches vest annually and PSUs settle on July 1 cycles (2025/2026/2027); insiders’ Section 16 filings were timely, and Lebeck’s direct holdings are immaterial versus total shares outstanding, limiting signal distortion .
- Performance execution remains key: 2024 STIP multiplier was 1.31x with sustainability under-target, while LTIP multipliers (1.69x and 1.81x) reflect strong FCF, deleveraging, and TSR; continued delivery on cash flow and ESG targets will drive payouts and confidence .
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