Energy Industry Long-Term Incentive Pulse Survey
NFPCCmp;A conducted a pulse survey for the energy industry regarding long-term incentives with 55 participants. This was the first of a two part survey that is designed to fill a gap in available compensation surveys for long-term incentive data. NFPCCmp;A will be conducting the second part of the survey beginning in April. Please contact us if you would be interested in participating.
Here is a list of general findings :
⁻ Award Size: 57% of the respondents indicated the company has a long-term incentive philosophy target above the market 50th percentile, indicating a desire to retain and reward over the long-term above market norms.
⁻ Award Vehicle: A significant prevalence of companies utilize full-value share awards in the form of restricted stock awards and restricted stock units. This runs counter to most other industries over the past three years where many stakeholders are concerned with pay for performance. The energy industry has a concern for linking pay and performance, but balanced with a need to retain critical talent.
⁻ Award Eligibility: Position title, salary grade and management discretion were the most prevalent primary factors for determining long-term incentive eligibility.
⁻ Award Vesting: The most prevalent vesting schedule for all equity types is three years with a ratable vesting schedule.