Tesoro 2015 Annual Report Download - page 147
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Please find page 147 of the 2015 Tesoro annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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On January 28, 2016, the Compensation Committee approved the terms of the 2016 Incentive Compensation Program (the “2016 ICP” or the “2016
Program”). In addition, the Compensation Committee approved the target payouts for our Chief Executive Officer other named executive officers. The 2016
Program consists of two components: Corporate and Business Unit performance, which are outlined below. The performance results of Tesoro Corporation
(the “Company”) and the individual business units may be adjusted to take into account unbudgeted business decisions, unusual or non-recurring items, and
other factors, as approved by the Compensation Committee, to determine the total amount, if any, available under the 2016 ICP. The Compensation
Committee also has discretion to adjust individual awards based on their assessment of an individual executive’s performance relative to successful
achievement of goals, business plan execution, and other leadership attributes.
-measured against target with the range of outcomes between 0% and 200%. Corporate performance metrics include
the following:
• Achievement of earnings before interest, taxes, depreciation and amortization (“EBITDA”) measured on a margin neutral basis (this is the most
heavily weighted metric, constituting 50% of the bonus opportunity for the corporate performance component)
• Safety - Targeted improvement in recordable incidents (this metric constitutes 5% of the bonus opportunity for the corporate performance
component)
• Process Safety Management - Targeted improvement in the number of process safety incidents (this metric constitutes 5% of the bonus opportunity
for the corporate performance component)
• Environmental - Targeted improvement in the number of environmental incidents (this metric constitutes 5% of the bonus opportunity for the
corporate performance component)
• Cost Management - Measurement of non-capital cash expenditure versus budget (this metric constitutes 17.5% of the bonus opportunity for the
corporate performance component)
• Business Improvement - Targeted improvements from capital improvement initiatives, synergies related to asset acquisitions and other projects and
initiatives (this metric constitutes 17.5% of the bonus opportunity for the corporate performance component)
- - measured against target with the range of outcomes between 0% to 200%. Business Unit performance is
measured through balanced scorecards with performance metrics including, but not limited to:
• Safety and Environmental
• Cost Management
• Improvements in EBITDA
• Business improvements and value creation initiatives