North American Oil & Gas "Annual Proxy Review - Surveying The Changes & ..."

Research evidence excerpt

North American Oil & Gas "Annual Proxy Review - Surveying The Changes & ..."

Global Research

8 June 2026ab

North American Oil & Gas Equities

AmericasAnnual Proxy Review - Surveying The Changes

& Evolution of Energy Mgmt. Compensation Energy

Josh Silverstein

Analyst

josh.silverstein@ubs.com

Annual Proxy Executive Compensation Review +1-212-713 3513

We reviewed the annual proxy statements across our coverage with a focus on executive Peyton Dorne

compensation and change of control. Our analysis provides insight into key drivers of Analyst

short and long term compensation, how they differ between companies, and how they peyton.dorne@ubs.com

have continued to evolve. Overall, with long-term targets the largest driver of executive +1-212-713 4359

compensation, and TSR generally the largest component within long-term plans, we see William Barber

compensation as increasingly well aligned with shareholders. Inside we have detailed Associate Analyst

sector and company by company breakdowns. william.barber@ubs.com

+1-212-713 5553

Four Sector Highlights

1) The trend away from production to returns, ROCE, FCF metrics remains intact. Only 8

of 21 E&Ps have production targets and half are Gas E&Ps. We see this as a disincentive

for the sector to add activity right now and as a positive for oil prices. 2) Metrics around

capex, production, and margins are typically set at initial guidance levels, although there

are some instances of them being set below. We see tougher metric setting as a positive.

3) L-T comp is ~67% of total comp, and for most companies and is largely tied to TSR. 4)

The weight of ESG/Sustainability metrics continues to fall in short and long term plans.

Change Of Control Highlights

PR continues to have the highest CoC payout and highest CoC to Total Comp ratio.