Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 191

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 191
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 existing business portfolio, resilient to a transitioning energy system

Plan goalsThe company's long-term strategic objectives are translated into annual plan goals through a comprehensive process that incorporates corporate and functional plans. Plan goals are endorsed by the board. 

A disciplined approach to establishing goals aligns executives to deliver on the company's strategic objectives. The CEO is primarily responsible for executing the company's long-term strategic objectives, as translated into annual plan goals. CEO goals and objectives are inclusive of enterprise-wide initiatives. These include risk management, corporate reputation, talent management, research and technology, and management of major projects.Plan goals and objectives are cascaded throughout the organization, tailored to each executive's area of responsibility. Goals and objectives are reviewed with senior management annually and reinforced through periodic stewardship reviews and the performance assessment process. Leaders are held accountable to deliver on plan goals and objectives across all performance dimensions within the context of the company's strategic objectives. This sets a high performance threshold. Where faced with trade-offs across different priorities, these are discussed with senior management. 

Long-term strategic objectives integrated to annual company plan process, corporate goals and objectives approved by the board

159

Performance evaluation

Chief executive officer

The committee evaluates the CEO's performance across all performance dimensions within the context of the company's long-term strategy and evaluates progress against plan goals and objectives, which are reflective of the company's strategic objectives. Financial and operating metrics available at time of review further support the committee's assessment. 

Results of the annual performance evaluation inform level of pay, including salary, bonus, and restricted stock unit award. Details on pay deliberations can be found on page 167.

The company's strategic objectives are interdependent, with long-term success determined by delivery in each of the strategic objectives. As such, the committee assigns equal weight to each of the four strategic objectives. Recognizing the complexity and significant uncertainty inherent in a transitioning energy system, the committee maintains its focus on balancing the energy transition objectives and meeting society's need for affordable products that support modern life. 

Relevant business performance measures include: 

•Safety, health, and environmental performance;

•Risk management;

•Total shareholder return;

•Net income;

•Return on average capital employed1;

•Cash flow from operations and asset sales1;

•Operating performance of the upstream, downstream, and chemical businesses; and

•Progress on advancing long-term strategic interests.

1 Non-GAAP financial measure – see definitions and frequently used terms on page 172

Progress towards delivering the company's business results and driving the strategic objectives is