Summary of Executive Officer and Non-employee Director Compensation



 Exhibit 10.5 
 Summary of Executive Officer and Non-employee Director Compensation 
 Set forth below is a summary of
the compensation paid by Dril-Quip, Inc. (the “Company”) to its executive officers and non-employee directors as of the date of filing of the Company’s Annual Report on Form 10-K. For more information regarding executive officer and
director compensation, please read “Director Compensation,” “Executive Compensation,” and “Corporate Governance Matters—Related Person Transactions—Employment Agreements” contained in the Company’s proxy
statement for its 2009 Annual Meeting of Stockholders to be filed with the SEC pursuant to Regulation 14A. 
 Executive Officers 
 Each of the Company’s Co-Chief Executive Officers (the “Co-CEOs”) are compensated in accordance with the employment agreements entered into
with the Company prior to the closing of the Company’s initial public offering. Those employment agreements were amended in 2008 to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the
regulations promulgated thereunder. Except for revisions to certain provisions regarding the timing of payments made under the agreements, the benefits and terms of the amended employment agreements are substantially similar in all material respects
to the benefits and terms of the prior employment agreements. 
 Each of these agreements provides for an annual base salary, as well as cash
incentive compensation in the form of an annual performance bonus for each 12-month period based on (i) the Company’s performance in the 12-month period ending December 31 against the Company’s annual budget and (ii) the
Company’s return on capital compared to that of a peer group of companies for the 12-month period ending September 30. In addition, each agreement provides for long-term stock-based incentive compensation in the form of an annual grant of
options under the Company’s incentive plan equal to the employee’s base salary multiplied by three and divided by the market price of the Company’s Common Stock on the grant date. The employment agreements give the Nominating,
Governance and Compensation Committee the discretion to increase the annual performance bonus and the annual option grant above the amounts determined for such awards pursuant to the terms of the employment agreements. Each agreement also requires
the Company to maintain a flexible perquisites spending account in the amount of $25,000 each year for each of the Co-CEOs for use in paying for membership dues, costs associated with purchasing or leasing an automobile, financial counseling, tax
return preparation and mobile phones. The Company is required to pay the unused and remaining balances of such accounts annually to the Co-CEOs. 
 Effective December 31, 2008 each Co-CEO currently receives a base salary of $565,000. For additional information regarding each Co-CEO’s annual cash incentive compensation and long-term stock-based incentive compensation, please
read the Company’s proxy statement for its 2009 Annual Meeting of Stockholders. 
 The Company’s Chief Financial Officer (the
“CFO”) is compensated with a base salary, annual cash incentive compensation and stock-based incentive compensation as determined by the Co-CEOs. Effective March 10, 2008 the CFO currently receives a base salary of $240,000. For
additional information regarding the CFO’s annual cash incentive compensation and long-term stock-based incentive compensation, please read the Company’s proxy statement for its 2009 Annual Meeting of Stockholders. 
 Non-Employee Directors 
 The Company’s
non-employee directors receive an annual fee of $60,000, plus a fee of $1,000 for attendance at each Board of Directors meeting and $1,000 for each committee meeting. All directors are reimbursed for their out-of-pocket expenses and other expenses
incurred in attending meetings of the Board or its committees and for other expenses incurred in their capacity as directors.