The HR & ESG Committee is responsible for establishing policies and procedures designed to identify and mitigate risks associated with the Company’s compensation policies and practices. The Company mitigates executive compensation risk through such corporate governance oversight and policies, as well as the design of executive compensation. To this end, the HR & ESG Committee: Annually reviews the Corporation’s compensation program to ensure that it does not encourage excessive or inappropriate risk-taking.
-Established a peer group against which to benchmark executive compensation decisions.
-Adopted a policy that prohibits executive officers from purchasing financial instruments designed to hedge or offset a decrease in the market value of shares.
-Engages external consultants to assist with the evaluation of director and executive compensation. Based on the mandate of the HR & ESG Committee, the remuneration to management includes both quantitative and qualitative KPIs and measures including financial, operational and Sustainability goals.
Sustainability metrics are embedded in the Executive Scorecard as one of the primary ways the Company focuses on sustainability by creating an explicit link to compensation. Annually, the Company has Health, Safety and Sustainability objectives that drive improvement in key areas evaluated by both quantitative and qualitative targets. Such objectives account for a portion of the variable at risk Performance-based compensation paid to executives including among other things, incident/accident rates; government and community relations (development and implementation of strategy); employee relations, employee retention, training, and corporate sustainability management.
