Archrock Adopts 2025 Incentive Program and Adjusts Executive Compensation

Houston-based Archrock Inc. (NYSE: AROC) has announced a new short-term incentive initiative and a series of base salary adjustments for its leading executives, according to a Form 8-K filing dated February 19, 2025.

The board’s compensation committee introduced the “2025 Incentive Program” to serve as the short-term cash incentive element of the company’s total direct compensation plan. The program establishes cash incentive targets as a specific percentage of eligible earnings for each named executive officer. Under the program, President and CEO D. Bradley Childers has been assigned a target of 125% of eligible earnings, while Senior Vice Presidents Douglas S. Aron (Chief Financial Officer), Stephanie C. Hildebrandt (General Counsel and Secretary), Jason G. Ingersoll (Sales and Operations Support), and Eric W. Thode (Operations) have targets of 90%, 75%, 75%, and 75% respectively. Each executive’s potential payout can range from 0% to 200% of the target, subject to the committee’s discretion and performance assessments.

The incentive program’s performance evaluation will be based on several indicators, including Adjusted EBITDA—a non-GAAP measure excluding various non-recurring and non-cash items—sustainability factors involving environmental, safety, and talent metrics, and operating team performance metrics applicable to select executives. Furthermore, individual contributions, leadership, and the implementation of the company’s business strategy will also be taken into account. The committee retains the right to adjust the performance indicator targets during 2025 as necessary.

In tandem with the incentive program, the compensation committee also approved adjustments to the annual base salaries for the company’s named executive officers, effective from April 2025. The adjustments include an increase in the CEO’s base salary from $925,000 to $950,000; the CFO’s salary from $590,000 to $610,000; General Counsel and Secretary’s salary from $535,000 to $550,000; and both the Senior Vice President for Sales and Operations Support’s and the Senior Vice President for Operations’ salaries from $455,000 to $470,000 each.

The changes, signed by Stephanie C. Hildebrandt on behalf of Archrock on February 24, 2025, reflect the company’s ongoing efforts to align executive compensation with performance metrics and strategic objectives for the upcoming year.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Archrock’s 8K filing here.

Archrock Company Profile

Archrock, Inc, together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services.