CONOCOPHILLIPS | Revisit pay incentives for GHG emission reductions at ConocoPhillips

Status
0.76% votes in favour
AGM date
Previous AGM date
Proposal number
5
Resolution details
Company ticker
COP
Lead filer
National Legal and Policy Center
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • GHG targets / emissions
  • Remuneration or pay
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Energy
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders of ConocoPhillips request the Board of Directors’ Human Resources and Compensation Committee to revisit its incentive guidelines for executive pay, to emphasize legitimate fiduciary goals and consider eliminating greenhouse gas reduction targets and other scientifically dubious goals from compensation inducements
Supporting statement
SUPPORTING STATEMENT: Despite the evidence that climate alarmism is overstated, ConocoPhillips’s executive pay program incorporates unnecessary incentives to assumed combat climate change.

According to the Company’s 2023 Proxy Statement, the Human Resources and Compensation Committee set a Variable Cash Incentive Program target of 14 percent of total compensation for the CEO and 16 percent for other Named Executive Officers.12

“Strategic and ESG Milestones” are one of the five metrics used to determine VCIP for NEOs. These milestones include:
- “Demonstrated meaningful progress toward our Paris-aligned climate risk framework.”
- “Progressed our long-term strategy by establishing new methane and flaring targets, executing emission reduction projects, and progressing CCS business development opportunities.”
These VCIP metrics are unscientific and create a breach of fiduciary duty. ConocoPhillips is an oil and gas company and should focus on what it does best. The company cannot afford to be left behind because of misguided executive pay incentives.

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