{
  "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",
  "aspectRatio": 0.773,
  "pageNumber": 3,
  "pageCount": 20,
  "prevPage": 2,
  "nextPage": 4,
  "slideType": "executive_summary",
  "function": "summarize",
  "density": "dense",
  "nDataPoints": 8,
  "notes": "The slide serves as an executive summary/introduction for a report by Alvarez & Marsal Taxand, LLC.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "bullet_list",
    "subtitle_text"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-5ca1-7489-b633-ed30207fe34d/3",
  "deckHref": "/decks/019dd923-5ca1-7489-b633-ed30207fe34d",
  "deckJsonHref": "/decks/019dd923-5ca1-7489-b633-ed30207fe34d.json",
  "deckAnchorHref": "/decks/019dd923-5ca1-7489-b633-ed30207fe34d#slide-3",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "83% of companies utilize one or more performance metrics in their annual incentive plan. Production/production growth is the most prevalent metric and is utilized by 87% of such companies.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd951-a671-77dc-a368-40d284fdcfa4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.3,
        "w": 0.55,
        "x": 0.367,
        "y": 0.6
      },
      "kind": "list",
      "text": "72% of companies with market capitalization over $5B utilize annual incentive plans where payout is at least partially determined in a formulaic manner, while only 23% of companies with market capitalization smaller than $500M utilize formulaic performance metrics.\n83% of companies utilize one or more performance metrics in their annual incentive plan. Production/production growth is the most prevalent metric and is utilized by 87% of such companies.\n96% of companies grant at least one form of long-term incentive award. The prevalence of awards varies by company size, but time-vesting restricted stock / restricted stock units are the most common form of award granted (used by 83% of all companies).\n59% of companies grant long-term incentive awards where vesting or payout is determined by one or more performance metrics. Relative total shareholder return is the most commonly used performance metric and is used in 76% of such awards.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c20f290a-57b6-4a58-a0c5-8262cb40ff2d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "companies surveyed: 100",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd951-a671-77dc-a368-45f6ca01362d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.55,
        "x": 0.367,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "Incentive compensation is an integral part of the total compensation package for executives at most large, publicly-traded companies. To understand current annual and long-term incentive compensation pay practices in the oil and gas exploration & production (E&P) sector, Alvarez & Marsal Taxand, LLC's Executive Compensation and Benefits Practice (A&M) examined the latest proxy statements for 100 of the largest E&P companies traded on a U.S. stock exchange.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "33c37e7b-049b-4604-a8c3-874bf9ec37b2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.035,
        "w": 0.175,
        "x": 0.367,
        "y": 0.108
      },
      "kind": "title",
      "text": "INTRODUCTION",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "714b62e5-ee13-4132-849d-3a16f5afe6e7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.025,
        "w": 0.13,
        "x": 0.367,
        "y": 0.56
      },
      "kind": "title",
      "text": "Key Takeaways",
      "attrs": null,
      "subkind": "subtitle",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "537ad67b-4317-490f-ac0b-53e2732c1262",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [
    {
      "metricRaw": "companies surveyed",
      "numberRaw": "100",
      "numberKind": "plain",
      "actionTitle": null,
      "calloutText": "83% of companies utilize one or more performance metrics in their annual incentive plan. Production/production growth is the most prevalent metric and is utilized by 87% of such companies.",
      "numberScale": null,
      "numberValue": 100,
      "metricFamily": "survey_sentiment",
      "numberCurrency": null
    }
  ],
  "tools": [
    {
      "name": "Pyramid Principle",
      "slug": "pyramid-principle",
      "agent": "Architect",
      "layer": "block",
      "matchId": "019dd95a-10d4-718b-9f59-6f87816d2a67",
      "evidence": "Answer-first: opens with summary takeaways before any chart.",
      "confidence": 80
    },
    {
      "name": "SCQA Framework",
      "slug": "scqa-framework",
      "agent": "Architect",
      "layer": "block",
      "matchId": "019dd95a-10d4-718b-9f59-711c89b9e2a0",
      "evidence": "Situation (incentive comp is integral) -> approach (examined 100 proxies) -> answer (takeaways).",
      "confidence": 55
    },
    {
      "name": "Chunking",
      "slug": "chunking",
      "agent": "Architect",
      "layer": "loop",
      "matchId": "019dd95a-10d4-718b-9f59-6b9eeb76b5ec",
      "evidence": "4 bulleted takeaways grouped by AIP vs LTI themes.",
      "confidence": 75
    },
    {
      "name": "Action Titles",
      "slug": "action-titles",
      "agent": "Architect",
      "layer": "slide",
      "matchId": "019dd95a-10d4-718b-9f59-5daf5f827da8",
      "evidence": "Key Takeaways bullets state insight-led %s, not topics.",
      "confidence": 80
    },
    {
      "name": "Concrete Language",
      "slug": "concrete-language",
      "agent": "Storyteller",
      "layer": "slide",
      "matchId": "019dd95a-10d4-718b-9f59-671fe8b70a56",
      "evidence": "Specific stats: 72%, 83%, 87%, 96% rather than vague claims.",
      "confidence": 82
    },
    {
      "name": "Core Message Extraction",
      "slug": "core-message-extraction",
      "agent": "Architect",
      "layer": "slide",
      "matchId": "019dd95a-10d4-718b-9f59-60fdf4f2d157",
      "evidence": "'Key Takeaways' section distills the whole report into 4 findings.",
      "confidence": 78
    },
    {
      "name": "Executive summary",
      "slug": "executive-summary",
      "agent": null,
      "layer": "slide",
      "matchId": "ecae4e90-fec6-4236-96f8-257ab1eff7df",
      "evidence": "Incentive compensation is an integral part of the total compensation package for executives at most large, publicly-traded companies.",
      "confidence": 0.9
    }
  ],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 8,
      "from": 3,
      "beatId": "019dd95a-0682-776c-8e36-dadd74b41723",
      "arcName": "The Triple Take",
      "arcSlug": "triple-take",
      "beatName": "The Facts (What)",
      "beatSlug": "triple-take-the-facts-what",
      "evidence": "Intro, methodology, AIP prevalence and metrics — pure descriptive findings.",
      "position": 1,
      "confidence": 65,
      "parentBeatName": "Setup",
      "parentBeatSlug": "setup"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}