Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 190

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 190
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 increased pay-at-risk.Restricted stock unitsAnnual bonusBase salaryPercent of NEO total direct compensation1•Over 50 percent•10 to 20 percent•10 to 30 percentIntent•Link pay to returns of long-term shareholders•Encourage long-term view through the commodity price cycle•Link pay to annual company earnings performance•Align incentives across all functions•Provide competitive base payKey design features•Granted in the form of stock units•CEO: 50 percent vests in 5 years from grant date; 50 percent in 10 years•All other executives: 50 percent vests in 3 years from grant date; 50 percent in 7 years•Long restriction periods coupled with performance metrics applied at grant•Significant portion of pay at risk of forfeiture for extended period of time•Paid in year of grant•Bonus award pool reflective of business performance•Individual award further determined by individual performance and pay grade•Full award subject to clawback•Increase determined by individual performance, experience, and pay grade•Ties directly to long-term benefitsDetermining compensationAnnual compensation benchmarking | Page 164•Focus on a range around the median of compensation benchmark peers, considering scale and complexity, tenure in position, individual and business performance.Business performance | Page 165Performance DimensionMeasurement•Progress toward strategic objectives–Operations performance–Financial performance–Energy transition–Business portfolio•Demonstrated leadership and accomplishments relative to established goals and objectivesPay deliberations and decisions | Page 167•Balances progress toward strategic objectives, business results, individual performance, and competitiveness of pay, taking into account experience in position

1  Refer to definitions and frequently used terms on page 172

158

Accountability and performanceThe executive compensation program design is aligned with our business model and approach to talent development - long-term career oriented, performance differentiated, and adaptable to evolving strategic priorities through goal setting. 

Strategic objectivesThe company's long-term strategic objectives center around four key interdependent performance dimensions, reflective of the company's priority focus areas. These objectives are fully integrated into the company's plan and provide the framework for the organization to deliver on its commitments.

The strategic objectives have been established to drive sustainable growth in shareholder value while also positioning the company for long-term success in a lower-emissions future. 

Long-term strategic objectivesOperations performanceDeliver industry-leading performance in safety, environmental performance, and reliabilityFinancial performanceDeliver industry-leading earnings and cash flow growthEnergy transitionReduce GHG emissions intensity at our operated assets and in hard-to-decarbonize sectorsBusiness portfolioOptimize