NFP Compensation Insights | March 2024
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M&A Impact on Human Capital in the Oil & Gas Sector
M&A activity in the oil and gas industry continues to trend as companies seek to acquire greater market share, cut costs and streamline operations. However, in the case of certain deals, human capital structure challenges can arise, potentially threatening the success of the transaction.
In this month’s featured article, we explore the impact M&A has on human capital in the oil and gas market and what companies can do to mitigate risks and retain their top tier talent. In addition, we encourage those in this sector to participate in our Midstream and Upstream Compensation surveys to gain valuable insights and remain competitive.
We hope you find the information helpful as many of these considerations can be applied to all industries and not just in M&A transactions. As always, don’t hesitate to reach out to NFPCC for expert guidance in any aspect of your compensation planning and total rewards strategy.
Geopolitical and monetary policies have a massive impact on the oil and gas industry, as each shift can lead to major changes in growth projections, operational efficiency, and broader cost reduction strategies. Following Russia’s invasion of Ukraine in 2022 and the subsequent increase in commodity prices, a new wave of M&A activity has greatly impacted growth strategies in the oil and gas market.
Employee retention trends and challenges in the oil and gas industry
In our conversations with oil and gas executives, discussions around talent are converging on a theme: companies are finding it increasingly difficult to attract and retain employees, especially since skill requirements are changing dramatically in the decarbonization era.
Reimagining Talent in M&A
With survival and growth riding on a company’s ability to hire the best talent, more executives are finding creative ways to solve the people equation. Executives see talent retention as the second-biggest contributor to deal success. And with record numbers of employees actively job searching, the challenge is getting even more critical as many industries face a talent shortage.
NEWS & UPDATES
Stay Competitive in the Oil & Gas Industry – There’s Still Time to Register!
2024 Midstream & Upstream Industry Compensation Surveys Open April 1st
Keep your programs competitive by participating in NFPCC’s Midstream and Upstream Compensation Surveys. Gain access to the latest benchmarks ranging from administrative support to executives in both corporate and technical roles. Data includes incentives like philosophy and pay practices, target and actual compensation, and vehicle design and prevalence.
Don’t miss out – results will only be available to participating organizations!
Ensure Your Disclosures are Effective and Compliant
As we start preparing for proxy season, NFPCC is ready to assist you in the development and overall structure of your CD&A disclosure. Leveraging extensive experience and knowledge of real-time best practices in the evolving shareholder communication platform, our consultants will help you craft an effective message to your investor audience while fulfilling SEC requirements.
