{
  "docId": "019dd923-5ca1-7489-b633-ed30207fe34d",
  "docSlug": "01932b757118df5b",
  "documentTitle": "Oil and Gas EP Incentive Plan Design",
  "authorId": "AlvarezMarsal",
  "authorName": "Alvarez & Marsal",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "strategy_consulting",
  "sourceTypeLabel": "Strategy consulting",
  "presentationDate": null,
  "orientation": "portrait",
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  "pageNumber": 10,
  "pageCount": 20,
  "prevPage": 9,
  "nextPage": 11,
  "slideType": "data_table",
  "function": "analyze_data",
  "density": "dense",
  "nDataPoints": 3,
  "notes": "The slide categorizes long-term incentives into three groups: time-vesting stock options/SARs, time-vesting restricted stock/RSUs, and performance-vesting awards.",
  "elementsJson": [
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  "slideHref": "/slides/019dd923-5ca1-7489-b633-ed30207fe34d/10",
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  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Time-vesting restricted stock / RSUs are the most utilized award type followed by performance-vesting awards.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
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      "componentId": "019dd951-a671-77dc-a368-e4c59cc4761e",
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    {
      "bbox": {
        "h": 0.17,
        "w": 0.72,
        "x": 0.19,
        "y": 0.48
      },
      "kind": "chart",
      "text": "Long-Term Incentive Award Prevalence",
      "attrs": null,
      "subkind": "bar-horizontal",
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      "componentId": "e8a6fedb-0e39-4771-8940-b0bc86c708a4",
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    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Percentage of Companies Granting LTI Award: 83%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd951-a671-77dc-a368-e8752c881940",
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    {
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      "kind": "paragraph",
      "text": "Most E&P companies analyzed (96%), grant some form of long-term incentive award to executives. Long-term incentives generally consist of stock options, stock appreciation rights (SARs), time-vesting restricted stock or restricted stock units (RSUs) and performance-vesting awards (i.e., awards that vest upon satisfaction of some performance criteria rather than solely based on the passage of time). For purposes of this analysis, due to the similarity between awards, we grouped awards into three categories — (1) time-vesting stock options and SARs; (2) time-vesting restricted stock and RSUs; and (3) performance-vesting awards.",
      "attrs": null,
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        "y": 0.68
      },
      "kind": "paragraph",
      "text": "Time-vesting restricted stock / RSUs are the most utilized award type followed by performance-vesting awards. Not surprisingly, stock options / SARs are the least prevalent LTI vehicle utilized by U.S.-based E&P companies. Stock options / SARs have declined in popularity due to a change in the accounting treatment for these awards, the overall market shift toward performance-vesting equity, and because of the view of proxy advisors that these types of awards are not “performance-based,” even though to receive value from a stock option or SAR, the underlying stock price generally must increase.",
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      "kind": "title",
      "text": "LONG-TERM INCENTIVES",
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      "kind": "title",
      "text": "Award Prevalence",
      "attrs": null,
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      "componentId": "34f7dd6a-c6be-46f0-84e5-d297375c1446",
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  ],
  "metrics": [
    {
      "metricRaw": "Percentage of Companies Granting LTI Award",
      "numberRaw": "83%",
      "numberKind": "percent",
      "actionTitle": null,
      "calloutText": "Time-vesting restricted stock / RSUs are the most utilized award type followed by performance-vesting awards.",
      "numberScale": null,
      "numberValue": 83,
      "metricFamily": "survey_sentiment",
      "numberCurrency": null
    }
  ],
  "tools": [
    {
      "name": "Data Story Arc",
      "slug": "data-story-arc",
      "agent": "Storyteller",
      "layer": "loop",
      "matchId": "019dd95a-10d4-718b-9f59-bb7f481d1539",
      "evidence": "Opens LTI segmentation loop spanning p10-17.",
      "confidence": 72
    },
    {
      "name": "Progressive Disclosure",
      "slug": "progressive-disclosure",
      "agent": "Architect",
      "layer": "loop",
      "matchId": "019dd95a-10d4-718b-9f59-bdd1e0d19ef4",
      "evidence": "LTI loop reveals award-type, prevalence-by-size, metrics, period, payout cap in order.",
      "confidence": 68
    },
    {
      "name": "Action Titles",
      "slug": "action-titles",
      "agent": "Architect",
      "layer": "slide",
      "matchId": "019dd95a-10d4-718b-9f59-b288f928bfc2",
      "evidence": "Callout: 'Time-vesting RSUs are the most utilized award type followed by performance-vesting.'",
      "confidence": 80
    },
    {
      "name": "Chart Selection Guide",
      "slug": "chart-selection-guide",
      "agent": "Designer",
      "layer": "slide",
      "matchId": "019dd95a-10d4-718b-9f59-b60133051b5a",
      "evidence": "Prevalence chart of LTI award types.",
      "confidence": 75
    }
  ],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 17,
      "from": 10,
      "beatId": "019dd95a-0682-776c-8e36-de09e6277adb",
      "arcName": "The Triple Take",
      "arcSlug": "triple-take",
      "beatName": "The Implications (So What)",
      "beatSlug": "triple-take-the-implications-so-what",
      "evidence": "LTI data segmented by market cap shows size-driven implications for plan design.",
      "position": 2,
      "confidence": 65,
      "parentBeatName": "Reflection",
      "parentBeatSlug": "reflection"
    }
  ],
  "loops": [
    {
      "to": 17,
      "from": 10,
      "name": "Segmentation Split",
      "slug": "34-segmentation-split",
      "bestFor": "Customer analysis, market research, resource allocation",
      "matchId": "019dd95a-07fe-70ce-8d3f-72bd8b10b9e9",
      "evidence": "Every LTI exhibit (p11-14) splits prevalence by market-cap buckets to surface size-driven differences.",
      "position": 2,
      "objective": "Show LTI design patterns vary systematically with company market capitalization",
      "structure": "The Aggregate View -> Segment A Behavior -> Segment B Behavior -> The Insight in the Difference",
      "confidence": 82,
      "description": "Divide a whole into meaningful segments to reveal hidden patterns"
    }
  ],
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  "locked": true
}