Sunoco 2012 Annual Report Download - page 160

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achievement of certain strategic milestones, and health, environment and safety performance. The long-term
metrics for the 2012 performance-based restricted units were total unitholder return and growth in cash
distributions to unitholders relative to our peers. This approach creates a balance of absolute and relative
performance to ensure that executives are rewarded when sustained results exceed our peer group.
The Compensation Committee reviews and approves the annual and long-term plan performance metrics
and goals annually. As a part of this process, the Compensation Committee focuses on what executive behavior it
is attempting to incent and the potential associated risks. The Compensation Committee periodically receives
financial information from the CFO, and information on accounting matters that may have an impact on the
performance goals, including any material changes in accounting methodology and information about
extraordinary/special items excluded by us and from our peer companies’ results, so that the Compensation
Committee members may understand how the exercise of management judgment in accounting and financial
decisions affects plan payouts.
We maintain unit ownership guidelines for our top executives. The amount of our common units required to
be owned increases with the level of responsibility. Requiring an executive to hold a substantial portion of
accumulated wealth in our common units, which must be held until the executive retires or otherwise leaves the
employ of our general partner or its affiliates, aligns his or her behavior towards long-term unitholder value
creation. See “Compensation Discussion & Analysis—Elements of Compensation—Unit Ownership Guidelines”
for additional information.
Employees of our general partner and its affiliates are subject to our Insider Trading Policy, which, among
other things, prohibits an employee from entering into short sales, or purchasing, selling, or exercising any puts,
calls or similar instruments pertaining to our securities, all of which could incent an employee towards engaging
in overly risky behavior for short-term gains.
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
There are no Compensation Committee interlocks.
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