Page 127 - Suncor AR English

Common shares authorized for issuance by the Board of Directors that remain available for the granting of future options:

(thousands) 2013 2012

29 817 7 020

(b) Share Unit Plans

The company’s share unit plans are accounted for as cash-settled plans.

A performance share unit (PSU) is a time-vested award entitling employees to receive varying degrees of cash (0% –
200% of the company’s share price at time of vesting) contingent upon Suncor’s total shareholder return (stock price

appreciation and dividend income) relative to a peer group of companies. PSUs vest approximately three years after the
grant date.

A restricted share unit (RSU) is a time-vested award entitling employees to receive cash equal to the company’s share price

at the time of vesting. Typically, RSUs vest approximately three years after the grant date.

A deferred share unit (DSU) is redeemable for cash or a common share for a period of time after a unitholder ceases
employment or Board membership. The DSU plan is limited to executives and members of the Board of Directors.

Members of the Board of Directors receive one-half or, at their option, all of their compensation in the form of DSUs.
Executives may elect to receive one-half, or all, of their annual incentive payment in the form of DSUs.

Changes in the number of outstanding share units were as follows:

(thousands) PSU RSU DSU

Outstanding, January 1, 2012 4 660 9 294 1 702
.......................................................................................................................................................................................................................................................
Granted 1 021 6 803 198
.......................................................................................................................................................................................................................................................
Redeemed for cash (1 168) (2 666) (263)
.......................................................................................................................................................................................................................................................
Forfeited/expired (135) (566) —

Outstanding, December 31, 2012 4 378 12 865 1 637
.......................................................................................................................................................................................................................................................
Granted 1 082 7 365 165
.......................................................................................................................................................................................................................................................
Redeemed for cash (1 684) (2 526) (764)
.......................................................................................................................................................................................................................................................
Forfeited/expired (135) (658) —

Outstanding, December 31, 2013 3 641 17 046 1 038

(c) Stock Appreciation Rights (SARs)

A SAR entitles the holder to receive a cash payment equal to the difference between the stated exercise price and the
market price of the company’s common shares on the date the SAR is exercised, and is accounted for as a

cash-settled plan.

(i) Suncor Energy Inc. SARs
These SARs have a seven-year life and vest annually over a three-year period.

(ii) Legacy Petro-Canada SARs

This plan was discontinued on August 1, 2009. These SARs have a seven-year life and vest annually over a four-year
period.

SUNCOR ENERGY INC. ANNUAL REPORT 2013 123