Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 192

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 192
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 discussed throughout the year in various board and committee reviews. Financial and operating metrics are assessed over near- and long-term time horizons, taking into account the broader business environment. See page 165 for 2024 business performance results.

Executive officers

The CEO reviews the performance of all other executive officers, who are responsible to deliver the company's business results and drive the strategic objectives, with the board during the annual executive development review. Performance is evaluated based on accomplishments versus plan goals and objectives. 

In addition to this formal annual assessment, the board evaluates the performance of all senior executives throughout the year during specific reviews and board meetings. 

The committee also takes into account demonstrated leadership in sustaining sound business controls and a strong ethical and corporate governance environment. 

The committee does not use quantitative targets or formulas to assess individual performance or determine compensation. Formula-based performance assessments and compensation typically require emphasis on two or three business metrics. For the company to be an industry leader and effectively manage the technical complexity and integrated scope of its operations, senior executives must advance multiple strategies and objectives in parallel, versus emphasizing one or two at the expense of others that require equal attention. 

Leaders are held accountable to deliver and are assessed across all performancedimensions, balancing short- and long-term priorities

160

Long-term award program

Through long restriction periods, Imperial executives are incentivized to take a long-term view in decision making

Restricted stock units represent over 50 percent of total direct compensation1, and are intended to link executive pay to the returns of long-term shareholders and encourage a long-term view through the commodity price cycle. 

Restricted stock units granted to the CEO vest 50 percent in 5 years and 50 percent in 10 years. Restricted stock units granted to all other executives vest 50 percent in 3 years and 50 percent in 7 years. 

Program design

Business model alignmentLong investment lead times and complex risk managementlandscape require long-term viewShareholder alignmentMajority of executive pay delivered in restricted stock units, aligning realized pay level with returns of long-term shareholdersAccountabilityRestriction periods and risk of forfeiture drive focus on long-term shareholder value creation while managing riskLongest restriction periods in any industryApplying performance measures at grant enables restriction periods of up to 10 yearsHighest standards of performancePerformance assessed againstpre-established goals and objectives, results tie directly to award levelAbility to retain key talentExecutives unable to monetize significant portion of pay, creating large “buyout" hurdle

Long restriction periods in line with investment lead