Conocophillips · NYSE:COP
Conocophillips — Shareholder Meeting (May 2017)
9 slides from Conocophillips's shareholder meeting presentation, May 5, 2017
Slide 1: Cautionary Statement
Cautionary Statement The following presentation includes forward-looking statements. These statements relate to future events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations, operating results or the industries or markets in which
Slide 2: Management requests stockholders vote FOR Item 3
3 Management requests stockholders read this supplement to the 2017 Proxy prior to voting For the reasons outlined in the 2017 Proxy and these supplemental materials, management requests stockholders vote “FOR” Item 3 – Advisory Approval of the Compensation of the Company’s Named Executive Officers
Slide 3: 2016 Operating Performance
2016 Operating Performance 6 Project Startups Achieved 2016 3% Production Growth1 2016 vs. 2015 19% Production and Operating Expenses Reduction 2016 vs. 2015 $3B Initiated share buyback program in mid-November 52% Capital Reduction 2016 vs. 2015 11% Incident Rate Improvement 2016 vs. 2015 Operationa
Slide 4: Total Shareholder Return: Long-Term Measure of Performance
Total Shareholder Return: Long-Term Measure of Performance 1 Period from Jan. 1, 2016 – Dec. 31, 2016 2 Period from Nov. 10, 2016 (Analyst & Investor Meeting) – Apr. 28, 2017 3 Period from May 1, 2012 – Apr. 28, 2017 5 Total Shareholder Return (TSR): Challenged in 2016 Ranked 2nd since the November
Slide 5: Incentives in a Cyclical and Volatile Environment
Incentives in a Cyclical and Volatile Environment Oil and gas prices began precipitous decline in late 2014; low prices persist today Management took decisive actions to respond and reset strategy Formulaic designs are not sufficient to address dynamic nature of our business Human Resources and Comp
Slide 6: Strong Pay and Performance Alignment
Strong Pay and Performance Alignment About 90% of the CEO’s pay is performance-based; 72% is stock-based, providing direct-link to stockholder experience; target pay flat since 2013 Three-year (Performance Share Program) and annual payouts set below target Payout of 88% in the three-year program ref
Slide 7: Rigorous Process to Set and Review Executive Compensation
Rigorous Process to Set and Review Executive Compensation HRCC follows comprehensive annual governance process to: Ensure compensation programs align with company strategy and include feedback from stockholders, proxy advisors and best practices Establish metrics, targets and target compensation tha
Slide 8: Responsive Executive Compensation Program Changes
Responsive Executive Compensation Program Changes 9 3-Year Performance Share Program (PSP) Increased performance shares weighting to 60% of long-term incentive mix Metrics: Increased relative TSR weighting from 40% to 50% Replaced financial/operational metrics with relative financial metrics only wi
Slide 9: Responsive Executive Compensation Program Changes
> Responsive Executive Compensation Program Changes ConocoPhillips 3-Year Performance Share Program (PSP) Stock Option Program Increased performance shares weighting to 60% Reduced stock options weighting to 40% of of long-term incentive mix long-term incentive mix recognizing potential dilution in