Sunoco 2012 Annual Report Download - page 126

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Incentive Plan, the Compensation Committee approved performance goals and Payout
Percentages based upon meeting weighted objectives for the following principal measurements:
(1) Performance relative to the Partnership’s targeted EBITDA less maintenance capital
(weighted 60%):
EBITDA less Maintenance Capital Payout *
< $375 Million ...................................... 0%
$375 Million ..................................... 25%
$500 Million ..................................... 100%
> $625 Million ...................................... 200%
* Payout Percentages for performance between specified goals will be interpolated on a straight-line basis, not
to exceed the 200% cap.
(2) Our performance related to five strategic milestones (weighted 40%):
Strategic Milestones Weighting
Environmental (releases with off-site impacts) ........... 10%
Safety (employee and contractor lost time rate) ........... 5%
Organic Growth Funnel (projected EBITDA rom qualifying
organic growth projects) ........................... 5%
Northeast Logistics Transformation .................... 5%
Major Projects:
West Texas Expansion .......................... 5%
Mariner West .................................. 5%
Butane Installations ............................. 5%
The use of health, environmental and safety performance goals reinforces that, along with financial
success, management is focused on continuing to protect our employees and the communities in which
we operate.
2012 Annual Incentive Payout Amount. The annual individual incentive guideline is based on general
industry market data from the Compensation Comparative Group, as well as internal pay equity
considerations. Following the end of each year, the Compensation Committee reviews performance
data with management and the compensation consultant, and determines the extent to which the
specified goals have been achieved, and the payment amount within the applicable range. Based upon
our level of attainment of the specified goals during the 2012 plan year, the Payout Percentage was
170.4 percent. The annual incentive reinforces the links between strategy, goal setting and results. The
individual incentive guidelines (as a percentage of base salary) for the NEOs for 2012 were as follows:
Name Title
Annual Incentive Plan
Individual Incentive
2012
Guideline
Michael J. Hennigan ..... President and Chief Executive Officer 110%
Martin Salinas, Jr. ....... Chief Financial Officer Not Applicable
Kathleen Shea-Ballay .... Vice President, General Counsel & Secretary 45%
Lynn L. Elsenhans ...... Former Chairman and Chief Executive Officer Not Applicable
Brian P. MacDonald ..... Former Vice President and Chief Financial Officer Not Applicable
Michael J. Colavita ...... Former Interim Chief Financial Officer Not Applicable
124