Page 40 - MIC 2014 - English
P. 40
EXECUTIVE COMPENSATION
Compensation of the Named Executive Officers
Compensation Decision-Making. The compensation of the NEOs is determined as part of an annual process followed
by the HR&CC and outlined in the chart below:
Q4
Step 1
Benchmark and establish
compensation levels, including mix,
pay at risk and any changes for the
upcoming year
Q4 +Q1
Step 4
Compensation decision making is guided
by a philosophy which: Q1
Step 2
Evaluate company and President & CEO - aligns compensation with shareholders
performance and determine interests;
Review and approve corporate and
compensation that will be recommended - rewards executives for performance business unit goals and metrics and
to the Board; review compensation for achieved; and
President & CEO personal goals
other senior executives
- enables Suncor to attract and retain
talented executives.
Q2+Q3 Step 3
Monitor company progress and
evaluate performance under
compensation programs
20FEB201419190436
2013 Total Direct Compensation. The 2013 base salary and long-term incentive awards for each NEO are provided in
the tables below. Information on Suncor’s annual incentive plan (‘‘AIP’’) performance in 2013 is provided on pages 39 to
40. With the exception of Mr. Demosky, details on each NEO’s performance, his 2013 annual incentive award and his
total direct compensation are provided on pages 41 to 53 of this management proxy circular. As Mr. Demosky resigned
from Suncor effective December 27, 2013, he did not receive an AIP award; his total direct compensation can be found in
the ‘‘Summary Compensation Table’’ on page 58 of this management proxy circular.
Base Salary. On March 1, 2013, NEO base salaries were increased by the percentages displayed in the following table.
The increases reflect their demonstrated capability and ensure that their base salary is competitive with the market for
their position.
Base Salary 2013 Increase from 2012 Base Salary 2012
($)
(%)
($)
S.W. Williams 1 300 000
4.0%
1 250 000
.......................................................................................................................................................................................................................................................
S.D.L. Reynish 525 000 5.0% 500 000
.......................................................................................................................................................................................................................................................
B.W. Demosky(1) 530 000 6.0% 500 000
.......................................................................................................................................................................................................................................................
M.S. Little 610 000 7.0% 570 000
.......................................................................................................................................................................................................................................................
M.R. MacSween 510 000 7.4% 475 000
.......................................................................................................................................................................................................................................................
B.J. Jackman(2) 750 000 0.0% 750 000
(1) Mr. Demosky resigned from Suncor effective December 27, 2013.
(2) Mr. Jackman retired from Suncor effective September 30, 2013.
Long-Term Incentive (LTI). The 2013 equity component of the NEOs’ competitive total direct compensation was
awarded in February 2013. The grant of stock options and PSUs considered: the market target value for the equity
awards at the median of the Suncor Compensation Peers; performance as determined by the Board in the case of
Mr. Williams, and performance as determined by Mr. Williams in the case of the other NEOs; and the previous year’s
equity award received by each NEO under the Suncor Stock Option Plan (the ‘‘SOP’’) and the PSU Plan. For more
information on Suncor’s equity plans, see ‘‘Summary of Incentive Plans’’ on page 67 of this management proxy circular.
38 SUNCOR ENERGY INC. MANAGEMENT PROXY CIRCULAR 2014
