Company: RIG
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0001451505-25-000029
Chunk: 94

Company: Transocean Ltd.
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 94
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 Bonus Plan Achievement | ​ | ​              | ​ | ​    |                     | ​ | 101%                      | ​ |

For specific award amounts, see “Executive Compensation—Summary Compensation Table.” I. FINANCIAL PERFORMANCE Developing Our EBITDA Target FOR THE 2024 BONUS PLAN, THE COMMITTEE EVALUATED FINANCIAL MEASURES THAT WOULD MOST CLOSELY ALIGN MANAGEMENT WITH THE COMPANY’S FINANCIAL OBJECTIVES. The Committee concluded that EBITDA continues to be the most appropriate financial measure for our annual bonus for the following reasons:

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| ■ | EBITDA is commonly used by our shareholders to evaluate financial performance; |

Transocean 2025 P-98 Proxy Statement

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| ​ | COMPENSATION DISCUSSION AND ANALYSIS |

| ■ | EBITDA is commonly used by our peers to evaluate their own financial performance; and                                                     |
| ■ | While EBITDA is a non-GAAP financial measure, it is objective and reconcilable to the GAAP measures reported in our financial statements. |

The Committee weighted EBITDA at 60% of the total 2024 Bonus Plan opportunity. Further, taking into account the Company’s 2024 financial plan, the Committee set the 2024 EBITDA target at $1.215 billion, which was a 41% increase above the 2023 EBITDA target and 56% above the 2023 actual achievement level. In evaluating the 2024 EBITDA target, the Committee, at the beginning of 2024, considered the following challenges for the Company and/or the industry:

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| ■ | Our customers’ focus on extended-duration opportunities with longer lead times to contract commencement;                                                                                         |
| ■ | Continued uncertainty, in the beginning of 2024, in the rig contracting environment, including the potential for decreasing dayrates for new contracts relative to expiring long-term contracts; |
| ■ | Continued volatility of commodity prices throughout the year, potentially causing delays for customer contracting activity and/or deferrals of their projects;                                   |
| ■ | The anticipated increase in maintenance expenses due to expected supply chain and inflationary concerns; and                                                                                     |
| ■ | The uncertain duration of contract preparation time.                                                                                                                                             |

In further consideration of these challenges and uncertainties, the Committee elected to maintain the threshold-to-maximum range at +/- 20%. Accordingly, the threshold and maximum performance outcomes were as follows:

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