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Base salaries
Executive Directors’ salaries are reviewed each year. The policy is to benchmark Executive Directors’ salaries against
a set of sector comparator companies (which for 2015
were selected FTSE350 Oil & Gas companies as well as
the agreed list of peer companies) with secondary reference to local market pay levels. When determining salary
increases, the Committee also takes into account overall Company performance and the average salary increase for
other employees in the Company.
The Committee reviews base salaries on an annual basis and no increases were made in 2015; there has been no
increase in base salaries since 2012.
Executive Director
2015 Annual Salary (US$) 2014 Annual Salary (US$)
% Change
Executive Chairman
442,482
442,482
Nil
Chief Executive Officer
407,637
407,637
Nil
Chief Financial Officer
348,477
348,477
Nil
Short Term Incentive Plan (‘STIP’)
The STIP came into effect as of 1 January 2013. This provides for maximum annual opportunities of 18 base monthly
salaries for the Executive Chairman and the CEO and 14 base monthly salaries for other senior executives. The Pay-
out is based on Group performance as measured by a Corporate Scorecard, subject to an individual performance
multiplier.
The STIP was approved in 2013 and operates as follows:
X
=
Individual
Multiplier
Company
Multiplier
Target
Award
STIP
Ranges between 0
and 2
(for All Executive
Directors)
Ranges between 0
and 1
= 9 months (for the
Executive Chairman
& the CEO) & 7
months (for the CFO)
X
For Executive Directors, and also employees at CL15 in grade and above, 50% of the STIP award is paid immediately
in cash and the remaining 50% is deferred in shares over three years.
For all employees, the individual multiplier range varies in accordance with their relative performance standing
and is determined by a Merit Panel for all staff other than those assessed as ‘Relatively Meeting Expectations’. For
employees in the top 10% of the Group’s performance standing, the range of the individual multiplier is increased
through a ‘star uplift’, and their total bonus entitlement is capped at the maximum pay-out set for each level of
seniority.
Objectives for the 2015 STIP Scorecard were set by the Committee at the beginning of the year. Further details of the
Corporate Scorecard performance objectives and weightings, individual performance measures, and any amounts
paid for 2015 are provided below.
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