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  "docSlug": "8f2bf126f524c30adef79c8d33966ec8",
  "documentTitle": "Engine No. 1 | Activist Presentation Deck | 83 slides",
  "authorId": "engine-no-1",
  "authorName": "Engine No. 1",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
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  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2021-05-01 00:00:00",
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  "pageNumber": 65,
  "pageCount": 83,
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  "notes": "The slide uses a comparison-based argument to highlight governance failures in executive compensation.",
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      "kind": "disclaimer",
      "text": "Source: Company proxy statements. ExxonMobil’s performance metrics are Safety and Operation Integrity, ROCE, Cash Flow from Operations & Asset Sales, and TSR.",
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      "text": "ExxonMobil’s compensation plan can also reward industry “outperformance” even if the entire industry destroys value, which can encourage capex spending even where shareholders would be better served by increased returns of capital or investments to strengthen the business. ROCE and TSR are compared to industry averages without reference to the overall market or cost of capital",
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      "kind": "list",
      "text": "Peers have more objective disclosures that are reported annually, such as Shell’s “Project delivery on schedule/ budget,” Total’s “Pre-dividend organic cash breakeven & Gearing Ratio,” and BP’s “Production costs per barrel, Refining availability, and Cash Cost Reduction”",
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      "kind": "list",
      "text": "Limited disclosure regarding project returns and lack of cost & balance sheet focused metrics limit accountability for cost overruns or overly optimistic price projections on projects described as “advantaged” even as overall returns decline",
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      "kind": "list",
      "text": "BP uses absolute ROACE and Total uses absolute ROE as targets, and Chevron and ConocoPhillips include S&P500 Total Return Index as a peer for TSR",
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      "kind": "title",
      "text": "Disconnect results in part from compensation plans that can reward volumes over sustainable value",
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      "arcName": "Problem-Agitate-Solution",
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      "evidence": "The document presents a solution, including new board members and a coherent returns-focused strategy, to address ExxonMobil's issues.",
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