Company: RIG
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0001451505-25-000029
Chunk: 96

Company: Transocean Ltd.
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 96
---
   |

Using this formula, zero mechanical failures and human performance errors that do not result in a cessation of rig operations (i.e., downtime), would result in a rig operating at 100% Uptime. Downtime events detract from optimal performance and have a direct negative impact on the customer’s operational plan, as well as the Company’s financial goals. In setting the threshold-target-maximum range for this measure, the mathematical differential of 2% from threshold to maximum is significant considering the total number of operating hours during a calendar year (e.g., 189,575.5 hours of operation in 2024). The Committee approved the following uptime target for 2024:

| ​​                                  | ​ | ​ |              | ​ |
| UPTIME TARGET AND PERFORMANCE RANGE | ​ |   | BONUS PAYOUT 
 (%)          |   |
| Threshold = 96.0%                   | ​ | ​ | 0%           | ​ |
| Target = 97.0%                      | ​ | ​ | 100%         | ​ |
| Maximum = 98.0%                     | ​ | ​ | 200%         | ​ |

In setting the uptime target, the Committee considered the Company’s emerging 2024 outlook and the forecasted challenges related to possibly reactivating stacked assets and onboarding new personnel. Following multiple years of above-target uptime achievement, and setting company record breaking uptime performance in 2023, the Committee opted to not only increase the 2024 target from 96.5% to 97.0%, but also to reduce the spread between threshold and maximum achievement from 3% to 2%. These adjustments represented a challenge for management to constantly improve operational efficiency achievement by requiring an incremental increase of approximately 948 operating hours, or nearly 40 operating days, compared to the previous target. Measuring Uptime Results THE COMPANY ACHIEVED 96.9% UPTIME PERFORMANCE IN 2024. Despite the forecasted challenges for 2024, we achieved uptime performance just below the increased 2024 target. Notably, the Company delivered these results in a year that included several rig mobilizations to new geographic locations requiring recruitment and onboarding of new local crew members as well as crew member relocation. As illustrated, the formulaic performance of uptime achieved a payout level of 90% of target and an associated weighted payout of 18% of the total target bonus opportunity for each of the Named Executive Officers.

Transocean 2025 P-100