Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 194

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 194
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 requirement.

•Long restriction periods result in stock ownership far exceeding ownership guidelines typical among other companies across industries. This aligns the interests of our executives with those of long-term shareholders and ensures focus on actions that create sustainable shareholder value over the long term.

•At retirement, outstanding shares will continue to vest over a 7 to 10 year period.

 Exxon Mobil Corporation has a plan similar to the company’s restricted stock unit plan, under which grantees may receive restricted stock units, referred to herein as Exxon Mobil Corporation restricted stock. B.W. Corson holds Exxon Mobil Corporation restricted stock granted in 2018 and previous years, as well as Imperial Oil restricted stock units granted since 2019. D.E. Lyons holds Imperial Oil restricted stock units granted since 2018, and Exxon Mobil Corporation restricted stock granted in 2017 and previous years is fully vested. C.L. Gomez-Smith holds Exxon Mobil Corporation restricted stock granted in 2023 and previous years, as well as Imperial Oil restricted stock units granted in 2024.

1 Refer to definitions and frequently used terms on page 172

162

Bonus program

Annual bonus program represents 10 to 20 percent of total direct compensation1, and is intended to link executive pay to annual company earnings performance. 

Program design

•The committee establishes the overall size of the bonus program. In establishing the annual bonus program, the committee: 

•considers input from the chairman, president and chief executive officer on performance of the company and from the company’s internal compensation advisors regarding compensation trends as obtained from external consultants; 

•considers the linkage to the majority shareholder’s bonus program given the company’s working interest is included in Exxon Mobil Corporation earnings; 

•considers annual net income of the company; and 

•uses judgment to manage the overall size of the annual bonus program taking into consideration the cyclical nature and long-term orientation of the business. 

•A bonus award matrix is used to determine individual award levels based on pay grade and individual performance.

•Tie to year-over-year change in earnings coupled with individual performance defines the risk/reward profile of the bonus program and results in greater degree of volatility versus market practice, aligned with our approach to executive compensation as discussed on page 157.

•Bonus delivered in cash in year of grant.

•Full bonus award subject to clawback, see page 170.

2024 decisions 

•2024 bonus program was approved at a lower level than 2023, reflective of year-over-year change in earnings performance.

•Individual