Hi JD, there is a lot in the compensation doc...so I tried to highlight some high level items.
Link to info
https://wolfofbaystreetto.blogspot.com/2022/01/baytex-management-executive-compensation.html Some of my highlighs 1. Base pay
2. STIP - Based on annial corp/individual targets
3 LTIP-Aligned to shareholder interest and corp performance
3. Other- Market competitive
STIP Scorecard includes
1. Health, Safety, Environment targets
2. Corporate targets - i.e. Production boe/d, Controlling cash cost
3. Financials FCF, AFF per share, Adj ROIC
There are so many others things so I encourage everyone to read the full doc.
"A significant portion of our NEO’s total compensation is contingent upon Baytex’s financial results, operating results and share price performance. The alignment of our pay programs with performance over short and long term periods is reviewed regularly. Through the plans described below, a significant portion of the compensation for all employees, including NEOs, is based on corporate performance, as well as industry-competitive pay practices."
The reported versus realized compensation last year was impacted by share price performance. This obviously improved in 2021 and their goals include the improvement of share price.
They also benchmark against other companies both from a compensation perspective and stock perspective...those companies are also listed.
Looking at the plan obviously production, FCF, and controlling cost are there.
The LTIP includes share based awards so this for sure has company focus on share price appreciation.