Page 58 - MIC 2014 - English
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EXECUTIVE COMPENSATION
Cost of Management. The following table includes the aggregate total direct compensation for all NEOs compared to
Suncor’s operating earnings and market capitalization for the years ended December 31, 2013 and 2012.
2013 2012
Total Direct Compensation of all Named Executive Officers(1)(2) $28.2 $30.8
.......................................................................................................................................................................................................................................................
Total Direct Compensation as a percentage (%) of Operating Earnings(3) at
December 31 0.6% 0.6%
.......................................................................................................................................................................................................................................................
Total Compensation as a percentage (%) of Suncor’s Market Capitalization at
December 31 0.1% 0.1%
(1) Values reported in millions. Total direct compensation includes salary and annual incentives earned during the particular year reported and the grant
date fair value of annual mid- to long-term incentive awards granted in the particular year reported using the valuation methodology described in the
Summary Compensation Table in Suncor’s 2013 management proxy circular and in this management proxy circular for the particular year reported.
(2) For 2012, NEOs included Messrs. Williams, George, Demosky, Jackman, Little and Reynish. For 2013, NEOs include Messrs. Williams, Reynish, Demosky,
Little, MacSween and Jackman. Mr. Demosky resigned from Suncor effective December 27, 2013 and Mr. Jackman retired from Suncor effective
September 30, 2013.
(3) Operating earnings is a non-GAAP measure. See the ‘‘Advisories’’ section beginning on page 74 of this management proxy circular.
President and CEO Look Back. In 2006, the HR&CC introduced the practice of annually reviewing a broader analysis of
the total compensation earned and accruing to the President and CEO since his appointment and relating it to the TSR
during the same period. With the retirement of Mr. George in 2012 and appointment of Mr. Williams as President and
CEO, the committee has continued this governance practice for 2012 and 2013 for Mr. Williams, recognizing that the
relevance of the look back analysis will increase with his time in the position.
Looking Ahead to 2014:
The HR&CC approved a 4% budget for salary increases for executives in 2014 based on competitive benchmarking.
No changes were made to the structure of executive pay for base salary target levels, annual incentive target levels or
long-term incentive (‘‘LTI’’) target levels expressed as a percentage of base salary. Based on benchmarking these
components of total direct compensation, they remain at market median levels.
On February 5, 2014, the Board approved a grant of options, with an exercise price of $36.04, and PSUs to the Named
Executive Officers effective February 13, 2014, as described in the table below, under the terms of the SOP and the
PSU Plan.
Name Options PSUs
S.W. WILLIAMS 550 000 137 500
.......................................................................................................................................................................................................................................................
S.D.L. REYNISH 160 000 40 000
.......................................................................................................................................................................................................................................................
M.S. LITTLE 210 000 52 500
.......................................................................................................................................................................................................................................................
M.R. MACSWEEN 160 000 40 000
56 SUNCOR ENERGY INC. MANAGEMENT PROXY CIRCULAR 2014
