Safety Performance (25%) – Safety continues to be the first priority of our STRIVE strategy and the cornerstone of our “Target Zero” culture. For fiscal year 2018, our safety KPI levels for our executive officers and actual results were as follows:
TRIR Performance Score
Air Accidents Performance
Threshold Performance Level
Expected Performance Level
Maximum Performance Level
FY 2018 Actual
As set forth above, our KPIs for safety performance in fiscal year 2018 included (i) consolidated Total Recordable Injury Rate (“TRIR”), which is a measure of the number of qualifying injuries per 200,000 labor hours, for the fiscal year compared to a preset target, and (ii) consolidated Air Accidents (“AA”), which is a measure of aircraft accidents that accounts for the severity of any damage or injuries sustained during such events, for the fiscal year compared to a preset target. Neither our management nor our Compensation Committee believes that the use of AA and TRIR as safety metrics for purposes of our annual cash incentive plan in any way discourages or otherwise negatively impacts reporting of any safety incidents or risks.
The TRIR and AA performance is measured at the consolidated corporate level. The Bristow Safety Review Board was formed in June 2014 in order to establish best practices in safety and to create an independent review body when classifying accidents. The Bristow Safety Review Board is composed of four members, including an independent safety expert from outside of the Company who is not a participant under the Company’s annual incentive cash compensation plan and has no compensation impacted by the classification of any incident. The Bristow Safety Review Board meets at least once each quarter to review safety incidents and accidents that potentially impact the safety portion of the annual incentive cash compensation plan. The final classification of all aircraft accidents and fatalities are determined and recommended by the Bristow Safety Review Board to the Compensation Committee with final review and classification made by the Compensation Committee at its sole discretion.
If any business was acquired and consolidated or otherwise had been disposed of by the Company during fiscal year 2018, the award levels for TRIR applicable to the NEOs for fiscal year 2018 would have been adjusted on a prorated basis for TRIR attributable to such business. For fiscal year 2018, in the event the Company’s administrative, ground or air operations (including the operations of our former subsidiary, Bristow Academy, our U.K. SAR operations, Eastern Airways and Airnorth) had resulted in a fatality, all FY2018 STIP participants, including each of the Company’s executive officers and not just FY2018 STIP participants located where the fatality occurred, would not have received any compensation for the safety portion of their respective incentive awards. If during fiscal year 2018, our operations had resulted in a Permanent Total Disability Case (as defined in the FY2018 STIP) for any employee, passenger, bystander or anyone involved in such operations, the TRIR portion of the annual incentive award would have been eliminated. Additionally for fiscal year 2018 and as demonstrated above, in the event the Company’s air operations resulted in any Class “A” accident or more than two Class “B” accidents, the portion of any incentive award attributable to the safety performance component of AA would have been zero for all of the Company’s corporate employees, including each of the Company’s executive officers, as well as 2018 Plan participants in all consolidated parts of the Company (including Bristow Academy and U.K. SAR operations), not just the part of the Company in which the Class “A” accident or Class “B” accidents occurred.
The Company suffered no Class “A” or Class “B” accidents during fiscal year 2018. The Company experienced no change in TRIR from 0.33 for fiscal year 2017 to 0.33 for fiscal year 2018, but the Company did have two fewer recordable injuries than in fiscal year 2017. The final TRIR of 0.33 for fiscal year 2018 was above the threshold performance level of 0.29 resulting in a TRIR performance score of 0.00 for the fiscal year and no payment of the TRIR portion of the fiscal year 2018 annual incentive award.
Financial Performance (25%) – We believe that ROIC (as defined below) is an accessible and understandable measure for stockholders while at the same time properly incentivizing and focusing management on profit and loss efficiency and capital productivity.
BRISTOW GROUP INC. – 2018 Proxy Statement – 35