| Compensation Element |
Form |
Eligibility |
Performance Period |
Determination |
| Base salary |
Cash |
All salaried employees |
Annual |
- For executive officers, targets are set to the median of comparable companies, adjusted to reflect individual responsibility and performance.
|
| Short-term incentives |
Cash |
All executives, most salaried staff and hourly union and non-union employees |
1 year |
- Based on achieving predetermined goals for corporate performance or a combination of corporate and operating group performance.
- Can be adjusted (± 20%) to recognize individual performance.
- Beginning January 1, 2008, this annual cash bonus plan was extended to all Canadian and US hourly employees (union and non-union), providing a strong incentive for them to focus on achieving operational and corporate goals.
|
| Medium-term incentives |
Performance share units |
All executives and senior management (66 people) |
3 years |
- Units issued at our 30-day average share price on award date.
- Units vest and are paid out at the end of the three-year performance period, calculated whereby half the units vest based on total shareholder return (TSR)1 and half based on our TSR relative to the TSR of a selected peer group2.
- Payout value is equal to the number of vested units multiplied by our 30-day average share price at the end of the performance period (subject to a maximum of three times the initial unit price).
|
| Long-term incentives |
Performance options |
All executives, senior management and other selected management (258 people) |
3 years (vesting)
10 years (option term) |
- Performance options incorporate a performance-based vesting schedule measuring the three-year average excess of cash flow return over our weighted average cost of capital.
- Vested share value is based on our share price appreciation within the option term.
|