Sen. Alan Armstrong (R-Okla.) is helping advance legislation sought by the natural gas company he formerly led while retaining performance-based stock awards that could pay out tens of millions of dollars depending on the company's financial results.
Armstrong, the former CEO and executive chairman of Williams Companies, introduced a bill in June that would limit states’ water-quality review powers over gas pipelines and other infrastructure projects.
At the time, Williams was still treating him as an employee for purposes of his stock awards. When he left the company to join the Senate in March, the company's board agreed to count his time as if he had stayed through July, preserving an estimated $2.8 million in stock he would otherwise have lost. The compensation committee said it made the change so he "would not be financially penalized for his public service."
Key provisions of Armstrong’s bill are now part of a major bipartisan permitting deal negotiated by the leaders of the Senate's environment and energy committees, his office says. Among them are changes that would limit states' power under Section 401 of the Clean Water Act, the provision that governs those water-quality reviews. Armstrong is urging his colleagues to pass the deal when Congress returns in November.
Armstrong joined the Senate after about four decades at Williams, including 14 years as president and CEO. Oklahoma Gov. Kevin Stitt appointed him to replace Markwayne Mullin after Mullin became Homeland Security secretary. His Senate service is scheduled to end in January under Oklahoma state rules that bar him from running for a full term.
Permitting reform has dominated Armstrong's brief Senate tenure. His office says it has been "a central legislative priority" since he took office in March. He devoted his first floor speech to it, and nearly all of his press releases and media appearances have focused on it. He staffed his office with three Williams alumni, including chief of staff Lane Wilson, the company’s longtime general counsel, according to E&E News.
Armstrong’s Senate financial disclosure lists Williams common stock worth “over $50,000,000” and between $1 million and $5 million in dividend income. It separately reports unvested restricted stock units and performance stock units, each valued between $5 million and $25 million, and says he will continue participating in the company’s stock incentive and retirement plans. Armstrong disclosed a June 24 sale of between $5 million and $25 million in Williams stock, and in September reported purchasing up to $65,000 in options on the company’s stock.
His financial ties to Williams will extend beyond his time in office. In addition to his common stock, Armstrong holds awards that depend on company performance measured through December 2026 and December 2027. If Williams meets the target financial goals set for the awards, Armstrong would receive approximately 220,738 shares, worth $16.25 million at the share price the company used in its SEC filings. He could receive twice as many shares if Williams performs well enough, worth about $32.5 million at that same price. The payout depends on measures of the company’s returns on capital and cash generation, with an adjustment based on shareholder returns compared with peer companies. The shares’ value will depend on Williams’ stock price, and the company’s compensation committee retains discretion to reduce the payout. Payments are scheduled for 2027 and 2028.
