Texas Pacific Land Corporation (TPL)

[Enterprising Investor]

Trustees were replaced by directors upon conversion to a corporation.

Some investors complained when the two trustees began receiving $104,000 in compensation per year in 2019. Previously, the Chairman received $4,000 annually. Each of the other Trustees received $2,000 annually.

Not the directors receive a base retainer of $210,000, but there are more people to pay. Plus, directors serving in multiple leadership roles receive incremental compensation for each role: Board co-chair $40,000, Committee service (per committee) $10,000, Audit Committee chair $10,000, Nominating and Corporate Governance Committee chair $5,000 and Compensation Committee chair $5,000.

I would also like to point out that the former trustees were unitholders. Barry still owns 303 shares while Norris owns 1,000 per shares.

The water business also has variable expenses.