Crude Intentions II

As the energy transition continues to accelerate, demand for each of the fossil fuels is likely to peak before 2030. Oil and gas companies must plan for an economy with falling hydrocarbon use; for most, this means setting a strategy that includes planning for declining hydrocarbon output. To ensure that transition strategies are duly executed, executive remuneration must be framed accordingly.

Carbon Tracker has been analysing executive pay in oil and gas since 2019, and this note presents the latest update to the series. In this note, we delve into the executive compensation packages at 25 of the largest publicly listed oil and gas companies, analysing the incentives guiding decision-making at the c-suite level.

Key Questions Addressed:

  • Metrics Utilised: What metrics prevail in executive incentive plans?
  • Production Growth Incentives: Which companies continue to incentivize oil and gas production growth?
  • Transparency and Disclosure: How adequate is the disclosure of remuneration policies among these industry giants?
  • Timeline Mismatch: How do the vesting periods of incentive plans compare with corporate strategic timelines?
  • Recent changes: How have remuneration policies evolved in response to a recent period of elevated commodity prices?

For previous reports in the series, see Paying with Fire (2019), Fanning the Flames (2020), Groundhog Pay (2020), and Crude Intentions (2022).