Sustainability-Linked Compensation
Our executive compensation program is market-competitive and aligns pay with performance. Our compensation philosophy provides a competitive base salary to attract and retain strong talent, an annual bonus to align and motivate all employees around near-term Company targets, and a long-term incentive plan that focuses senior leaders on strategic multi-year delivery and long-term value creation through share-based rewards.
Our annual bonus metrics are rigorously vetted and reflect the building blocks that support long-term value creation. We incorporate sustainability metrics into our Company scorecard, given environment, social and governance matters are a top priority of the Board. Strong safety and environmental performance are critical to maintaining a well-managed company. From our ongoing dialog with investors and other stakeholders, we know they share the level of importance we place on this topic.
The long-term incentive awards are tied to both total shareholder return and specific strategic milestones over a longer horizon. Executive compensation is substantially “at risk,” and the Board retains discretion to ensure our pay programs produce outputs that align closely with changes in shareholder value.
The HRC Committee believes that direct feedback from shareholders is an important part of the compensation-setting process. We regularly solicit feedback from shareholders as well as input from independent compensation advisors to maintain a competitive executive compensation program that attracts and retains top talent and encourages sustainable performance.
Our compensation program continues to evolve and the Board remains attuned to shareholder feedback, changing shareholder expectations and evolving market standards. There were no substantive changes to our compensation program during 2023.