Table of Contents
- 2018 long-term incentive grants. The LTIP component of compensation was
granted in two forms of equity grants:
- Performance-based restricted stock units (50%), which are based upon the volume weighted average price ("VWAP") of a share of our
common stock for any 45-day trading window during a three-year performance period; and
- Time-based restricted stock units (50%), which cliff vest on the third anniversary of the grant date.
- 2018 retention grant: Our Board is keenly focused on succession planning
for senior management. In executing on the Company's long-term succession plan and to support executive retention in key leadership positions, the Board granted one-time retention awards to
Messrs. Eaves, Drexler and Lang. The retention awards consist of cash and time-based restricted stock units that vest over a period of three years following the grant date.
Our compensation programs are designed to attract, motivate and retain highly talented executives, while keeping them focused on promoting our
strategic objectives. We believe these compensation programs encourage sustained long-term profitability by making a significant portion of each named executive
officer's total direct compensation variable and dependent on our achievement of safety, environmental and financial performance. Thus, most of our executives' total compensation is performance-based
and not guaranteed.
type and amount of compensation for each NEO is determined after considering a variety of factors, including the executive's position and level of responsibility within our
organization, comparative market data and other external market-based factors. The Personnel and Compensation Committee, or the Committee, uses this information when establishing compensation in order
to achieve a comprehensive package that emphasizes pay-for-performance and is competitive in the marketplace. For the 2018 fiscal year, the pay mix at target for the CEO and other NEOs is displayed
- Average of the NEOs, excluding the CEO.