Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 189

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 189
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 across a broad range of business environments that generate sustainable shareholder value over the long term. 

The company's executive compensation program design aligns executives' pay with the results of their decisions and shareholder returns over the long term. The program is designed to drive long-term accountability, reward the highest standard of performance, and promote retention. 

Drive long-term accountability 

The company's strategic objectives have been established to drive sustainable value while positioning the company for long-term success in a lower-emissions future. These objectives are translated into annual plan goals through a comprehensive process which incorporates corporate and functional plans. Goals are incorporated in the corporate plan, which is reviewed and approved by the board and provides the framework for the company's commitments. 

Reward outstanding performance

Highly differentiated pay-for-performance is foundational to the company's compensation program design. The extent to which executives achieve pre-established goals and deliver on the organization's commitments, assessed over near- and long-term horizons, is a key differentiating factor in executives' pay deliberations. Performance evaluation directly impacts level of base salary, bonus, and long-term incentive awards. 

Promote retention

Long-term orientation also underpins how the company develops talent. It begins with recruiting exceptional people, and continues with individually planned experiences and training, which leads to broad development and a deep understanding of our business across the business cycle. 

The compensation program is designed to attract and retain talent for a career through compensation that is market competitive, highly differentiated by individual performance, and promotes retention through long restriction periods.

Supported by strong governance practices

Key design features that discourage executives from taking inappropriate risk include: 

✓ Extensive stock ownership✗ No severance agreements✓ Significant pay at risk✗ No change-in-control arrangements✓ Strong forfeiture provisions✗ No guaranteed bonuses✓ Clawback policy✗ No additional stock grants to balance losses in value✓ Anti-hedging policy✗ No accelerated vesting at retirement✓ Annual assessment of compensation design

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Overview

Accountability and performance | Pages 159 - 160•The board reviews and approves corporate goals and objectives annually; integrated into company's plan cycle.•Goals are cascaded at each level of leadership, tailored for area of responsibility; annual assessment versus planned goals results in differentiated pay outcomes.Compensation design | Pages 161 - 163•Named executive officers participate in the same broad-based programs as all other executives.•Restricted stock units for senior executives represent a higher percentage of total direct compensation1, reflective of the impact of their decisions, and resulting in