Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 172

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 172
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 better align the long-term financial interests of the directors with those of the shareholders, the vesting period was increased such that 50 percent vests on the fifth anniversary of the grant date and the remaining 50 percent vests on the tenth anniversary of the grant date. For all the units to be vested, directors may elect to receive one common share for each unit or a cash payment for the units. The vesting periods are not accelerated upon separation or retirement from the board, except in the event of death. 

In contrast to the forfeiture provisions for restricted stock units held by employees of the company, the restricted stock units awarded to nonemployee directors are not subject to risk of forfeiture at the time a director leaves the company’s board. This provision is designed to reinforce the independence of these board members. However, while on the board and for a 24-month period after leaving the company’s board, restricted stock units may be forfeited if the nonemployee director engages in direct competition with the company or otherwise engages in any activity detrimental to the company. The board agreed that the word “detrimental” shall not include any actions taken by a nonemployee director or former nonemployee director who acted in good faith and in the best interest of the company. 

Prior to vesting of the restricted stock units, the nonemployee directors receive amounts equivalent to the cash dividends paid to holders of common shares. The amount is determined for each cash dividend payment date by the following calculation: 

(i)the cash dividend payable for a common share; multiplied by 

(ii)the number of unvested restricted stock units held by the nonemployee directors on the dividend record date. 

Other reimbursement 

Nonemployee directors are also reimbursed for travel and other expenses incurred for attendance at board and committee meetings.  

143

Components of director compensation 

The following table sets out the details of compensation paid to the nonemployee directors in 2024. 

Director(a)Annualretainer forboardmembership($)(b)Restrictedstockunits(RSU)(#)Totalfeespaid incash($)(c)Total valueof deferredshare units(DSU)($)(d)Total valueof restrictedstock units(RSU)($)(e)All othercompen-sation($)(f)Total compensation ($)D.W. Cornhill155,0003,300—155,000330,95780,474566,431S.R Driscoll110,0003,300—110,000330,9579,855450,812J.N. Floren