Incentives and performance integration

Executive and employee compensation is linked to sustainability performance through our Variable Cash Incentive Program (VCIP), the company’s annual performance‑based cash bonus. VCIP payouts are determined using company, business unit and individual performance goals and performance categories including financial, operations, and health-safety-environment performance as well as strategic milestones.

In 2025, one of the strategic milestones was the goal of achieving annual emissions intensity levels aligned with the 2030 target trajectory range and advancing action plans for priority environmental and social risks including tracking progress against mitigation activities.

Another example of how sustainability factors into executive incentives is the role of the board’s Human Resources and Compensation Committee, which reviews feedback from regular stockholder engagement on sustainability priorities when evaluating executive compensation programs. This process supports the committee’s consideration of investor perspectives together with company performance and strategic objectives when considering executive compensation programs. Read more about how compensation is linked to sustainability performance in our Proxy Statement.