Chris Steddum
Texas Pacific LandAbout Chris Steddum
Chris Steddum is Chief Financial Officer of Texas Pacific Land Corporation (TPL), serving since June 1, 2021; he previously led Finance and Investor Relations at TPL since 2019 and spent a decade in oil & gas investment banking at Stifel and GMP Securities (with prior roles at Credit Suisse) . He holds an MBA from Rice University and a B.S. from the South Carolina Honors College . During his tenure, TPL’s 2024 performance included $705.8m revenue, $610.7m Adjusted EBITDA, $461.1m free cash flow, and a 111% stock price increase in 2024 . His compensation structure emphasizes equity and performance metrics (FCF/share, Adjusted EBITDA, RTSR vs XOP) with strong alignment and clawback protections .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Texas Pacific Land Corporation | Chief Financial Officer | 2021–present | Leads finance; supported growth and capital allocation across royalty, surface and water segments . |
| Texas Pacific Land (Trust/Corp.) | VP, Finance & Investor Relations | 2019–2021 | Led IR and financial analysis; advised TPL’s corporate reorganization and M&A transactions . |
| Stifel Financial Corporation | Director, Energy Investment Banking | 2016–2019 | Strategic advisor to TPL on reorganization and deals . |
| GMP Securities | Director, Oil & Gas Group | 2014–2016 | Transaction execution and coverage in oil & gas . |
| Credit Suisse Securities | Global Energy Group (prior role) | Pre‑2014 | Investment banking experience in energy . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | — | — | No current public company directorships disclosed . |
Fixed Compensation
Multi‑year compensation (Summary Compensation Table):
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $475,000 | $500,000 | $525,000 |
| Stock Awards ($) | $1,554,798 | $1,806,913 | $2,595,979 |
| Non‑Equity Incentive Paid ($) | $748,125 | $679,950 | $895,062 |
| Change in Pension PV ($) | $0 (decrease reported as zero) | $26,724 | $13,148 |
| All Other Compensation ($) | $18,300 | $19,800 | $20,700 |
| Total ($) | $2,796,223 | $3,033,387 | $4,049,889 |
Additional fixed terms:
- 2024 base salary increased to $525,000; target annual bonus 90% of salary .
- Defined Benefit Pension Plan present value at 12/31/2024: $81,691; Plan frozen effective 12/31/2024 and scheduled for termination 12/31/2025 .
Performance Compensation
2024 Annual Incentive (Short‑Term)
| Metric | Weight | Threshold | Target | Maximum | Actual | Payout vs Target |
|---|---|---|---|---|---|---|
| Adjusted EBITDA Margin | 25% | 78.0% | 83.0% | 88.0% | 86.5% | 171% |
| FCF per Fully Diluted Share | 50% | $11.00 | $15.67 | $20.33 | $20.03 | 194% |
| Strategic Objectives | 25% | — | — | — | Achieved: TRIR=0, Scope 1 emissions −8%, market capture +13% vs ownership, SWD permits exceeded, ROIC > 8% | 200% |
| Total Payout | — | — | — | — | — | 189.4% of target; bonus paid $895,062 for Steddum . |
Commodity price collar applied (no adjustment in 2024; realizations $39.87/BOE within collar) .
2024 Long‑Term Incentives (Grant 2/13/2024)
| Vehicle | Weight | Units (Steddum) | Performance Design | Grant Date Fair Value ($) |
|---|---|---|---|---|
| PSUs – RTSR vs XOP | 25% | 1,038 target | 0–200% payout by percentile (50th=100%, 90th=200%) over 3 years | $624,402 |
| PSUs – 3‑yr Cumulative FCF/Share | 25% | 1,038 target | Threshold $36.67, Target $50.00, Max $63.33 per share (0–200%) | $985,789 |
| Time‑based RSUs | 50% | 2,076 | Vest 1/3 annually over 3 years | $985,789 |
PSU vesting results (2012–2024 cycle completed):
- 2022 awards vested at 200% for both RTSR and FCF PSUs; Steddum vested 774 RTSR PSUs and 1,548 FCF PSUs on Feb 11, 2025 .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 3,502 shares; less than 1% of class . |
| Unvested RSUs (12/31/2024) | 3,438 units; market value $3,802,290 . |
| Unearned PSUs (12/31/2024) | RTSR PSUs: 2,448 target units ($2,707,390); FCF PSUs: 4,578 units ($5,063,085) – probability‑based presentation (150% for 2023 FCF PSUs; maximum shown for certain cycles) . |
| RSU vesting schedule | 2025: 423 & 516 & 690 units; 2026: 423 & 693; 2027: 693 (vest on Feb 10/11/13 of each year per grant) . |
| Ownership guidelines | Executives must hold 2x base salary; all executives in compliance . |
| Hedging/pledging | Hedging and short sales prohibited; any pledges/margin deposits require General Counsel pre‑approval . |
| Clawback | SEC/NYSE‑compliant clawback for restatements over prior 3 fiscal years . |
Employment Terms
| Provision | Key Terms |
|---|---|
| Current agreement | Amended & Restated Employment Agreement effective Oct 13, 2023; term through Dec 31, 2026 with automatic 1‑year renewals . |
| Position & reporting | CFO; reports to CEO . |
| Base salary & bonus | Base $500,000 (agreement minimum; actual 2024 salary $525,000); target bonus ≥90% of base, paid per metrics . |
| LTI opportunity | Target LTI + target bonus ≥225% of base annually (company‑determined) . |
| Severance (no CIC) | If terminated without Cause or resigns for Good Reason: Accrued rights; unpaid prior bonus; pro‑rata current year bonus; LTI per plan; 2x the greater of (A) 3‑yr avg base+bonus or (B) base+target bonus; plus 18 months COBRA premiums . |
| Change‑in‑Control (double‑trigger) | If terminated without Cause/for Good Reason within 24 months post‑CIC: above accrued items plus 2.99x the greater of (A) 3‑yr avg base+bonus or (B) base+target bonus; 18 months COBRA; outplacement ($30k) & financial planning ($30k); noncompete value offset against severance . |
| 280G handling | Best‑of‑net (cut to avoid excise tax or pay full subject to tax, whichever is better after‑tax); no gross‑ups . |
| Notice & covenants | 4‑week resignation notice; Non‑compete across Reeves, Loving, Culberson, Midland, Upton, Glasscock, Ector counties (with permitted activities); 12‑month non‑solicit; mutual nondisparagement . |
| Arbitration & indemnification | AAA employment arbitration in Dallas County; company indemnification and D&O insurance for at least six years post‑employment . |
| Clawback & insider policy | Company clawback; insider trading policy with pre‑clearance and anti‑hedging . |
| CFO appointment date | Effective June 1, 2021 (initial appointment) . |
Investment Implications
- Strong pay‑for‑performance alignment: STI tied to FCF/share and margin; LTI split between RTSR vs XOP and cumulative FCF/share; 2024 delivered 189.4% STI payout and 200% PSU vesting for 2022 awards, reflecting robust operational and market performance .
- Retention risk mitigated: Double‑trigger 2.99x CIC severance and 2x non‑CIC severance with 18‑month benefits support retention but imply sizable cash obligations in a change‑in‑control scenario; non‑compete and non‑solicit provisions further protect TPL .
- Insider selling pressure around vesting: RSU tranches vest each February (2025–2027); PSUs from 2022 vested in Feb 2025—expect withholding‑related share sales for taxes and potential liquidity events around these dates .
- Governance safeguards: Anti‑hedging, pledging controls, ownership guidelines (2x salary), and clawback reduce misalignment; say‑on‑pay support was ~88% in 2024, indicating investor acceptance of program design .
- Performance credibility: Company reported 2024 revenue $705.8m, Adjusted EBITDA $610.7m, FCF $461.1m, and 111% stock price increase—supports confidence in finance leadership under Steddum .