The Executive Leadership Team (ELT) has final responsibility for developing corporate strategy, implementing sustainability efforts, and reporting company performance. We have ELT champions for key issue areas:
- Stakeholder engagement – senior vice president (SVP), Corporate Relations.
- Human rights – SVP, Legal.
- Climate change – chief operating officer (COO) and SVP, Government Affairs.
- Water – president, Lower 48.
- Biodiversity – president, Alaska, Canada and Europe.
These executives are briefed regularly on emerging issues and strategic priorities and issue action plans in order to understand their implications and represent them to the ELT on an as-needed basis.
The shareholder resolution process provides investors the opportunity to raise ESG concerns with our leadership. While we take those concerns seriously and respect the right for shareholders to file resolutions, we find it is most productive to engage when an issue is identified and shared early.
Performance and Compensation
Three of the four components of executive compensation are performance based: The Variable Cash Incentive Program (VCIP), the Performance Share Program (PSP) and the Executive Restricted Stock Unit Program. Awards under VCIP and PSP are determined by company performance measured against several criteria, including the development and implementation of strategic plans to enhance our operating and financial position. The strategic planning process includes consideration of climate change and sustainable development risks and opportunities.
All employee compensation includes an annual cash bonus based upon company, business and individual performance. We incorporate metrics of health, safety and environmental performance in our annual incentive compensation program. In 2018, employees were rewarded for safety and sustainable development leadership for one of the best Total Recordable Rates (TRR) for injuries among our peer companies, our top SD ratings from ISS and MSCI and for the company’s membership in the Climate Leadership Council (CLC).