Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 195

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 195
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 awards for named executive officers further reflect individual performance.

Salary program

Base salary represents 10 to 30 percent of total direct compensation1, and is intended to provide competitive base pay and directly affect the level of retirement benefits, as salary is included in benefit formulas.

The overall size of the program is determined by annual benchmarking. Individual salary increases are the result of individual performance, experience, and pay grade.

2024 decisions 

•The committee approved 2025 salary increases for named executive officers consistent with the salary program for all executives.

•Individual salary treatments take into account individual performance, level of responsibility and experience, and reflect market analysis and competitiveness at the time of the decision in 2024.

1 Refer to definitions and frequently used terms on page 172

163

Determining Compensation

Annual benchmarkingThe executive resources committee conducts annual benchmarking to assessmarket competitiveness of executive pay and program design

Compensation benchmarking

In addition to the assessment of business and individual performance, the committee benchmarks against a select group of major Canadian companies on an annual basis.

Criteria for selecting benchmark companies1 include: 

•Canadian companies or Canadian affiliates; 

•large operating scope and complexity; 

•capital intensive; and 

•proven sustainability over time. 

Pay orientation

In assessing the appropriateness of pay levels, the committee considers scale and complexity, and tenure in position as relevant factors. 

The committee focuses on a range around the median of compensation benchmark companies. This provides the ability to: 

•differentiate compensation based on experience and performance levels among executives;

•minimize the potential for automatic ratcheting-up of compensation that could occur within a narrow target among benchmark companies; and

•respond to changing business conditions.

The elements of Exxon Mobil Corporation compensation program for B.W. Corson, D.E. Lyons, and C.L. Gomez-Smith, including salary, annual bonus, and restricted stock units are generally similar to those of the company. 

1 Refer to definitions and frequently used terms on page 172

164

2024 business performanceIn 2024, Imperial delivered strong business results across a wide range of performance dimensions.•Delivered strong safety performance and effective enterprise risk management across the organization.•Received TSX Top 30 recognition based on the company's three-year average dividend-adjusted share price performance of 167 percent.•Recognized as one of Alberta's top employers by Mediacorp Canada Inc. and designated as a 2024 top employer for Canadians over 40 and for young people.Financial performance•