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Click on the graph below to explore historical trends in executive compensation at the largest E&P and OFS companies in the United States.
To understand compensation practices in the energy sector, the Compensation and Benefits Practice of Alvarez & Marsal examined the 2022 proxy statements of the largest E&P and OFS companies listed on U.S. based exchanges. Explore some of our key findings below:
The most common AIP metric is health, safety and environmental at 100% and 80% for E&P and OFS companies, respectively. The most common LTI metric is relative TSR at 95% and 67% for E&P and OFS companies, respectively.
In 2022, the average ESG weighting has been 18% and 17% of Annual Incentive Plans for E&P and OFS companies, respectively.
To understand compensation practices in the energy sector, the Compensation and Benefits Practice of Alvarez & Marsal examined the 2022 proxy statements of the largest E&P and OFS companies listed on U.S. based exchanges. Explore some of our key findings below:
Effective compensation programs are critical to attract, retain, and drive performance of executives. Companies should ensure that their executive compensation programs are aligned with the market throughout each potential phase of a company’s life cycle, including initial public offering (IPO), transaction / merger, steady state, bankruptcy, and recovery upon emergence.
Events across the globe, such as COVID-19, social injustice, and the Russo-Ukrainian War, together with mounting political pressure to address environmental change, have created a monumental shift by companies to reprioritize ESG efforts. This has also placed a spotlight on organizations that focus on renewable and sustainable energy production and distribution. A&M analyzed the executive compensation programs at 10 of the largest Clean Energy companies to assess market trends in this rapidly growing sector. Explore the report’s key findings on Clean Energy companies to the right:
Events across the globe, such as COVID-19, social injustice, and the Russo-Ukrainian War, together with mounting political pressure to address environmental change, have created a monumental shift by companies to reprioritize ESG efforts. This has also placed a spotlight on organizations that focus on renewable and sustainable energy production and distribution. A&M analyzed the executive compensation programs at 10 of the largest Clean Energy companies to assess market trends in this rapidly growing sector.
The Compensation and Benefits Practice of Alvarez & Marsal assists companies in designing compensation and benefits plans, evaluating and enhancing existing plans, benchmarking compensation and reviewing programs for compliance with changing laws and regulations. We do so in a manner that manages risks associated with tax, financial and regulatory burdens related to such plans. Through our services, we help companies lower costs, improve performance, boost the bottom line, and attract and retain key performers.
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