7 Jan 2011

Oil & Gas Sector Report - Key Findings

• Only 1 company recorded a negative TSR figure over both 1 and 3 years, this was Hardy Oil & Gas. • 3 Companies recorded Upper Quartile TSR results for both 1 and 3 years. • Afren, Cairn & Tullow came out as negative figures in the Meis Pay Indicator Model, although they were the 3 companies to achieve Upper Quartile TSR performance over 1 and 3 years. • Max bonus median for the FTSE 100 was 150%. • CEO base pay is quite erratic, with 11% of CEO’s receiving under £100,000, 23% receiving between £300,000 and £400,000 and 29% receiving £600,000 and over. • FD’s base pay is quite evenly spread, although 50% of FD’s receive between £200,000 and £400,000. • Restricted Share Schemes are the most common type of share plan for the sector. Interestingly, 67% of these schemes use Comparative TSR as the main performance condition. This would suggest that the majority of schemes would some level of vesting. • HNBS advise most companies in this sector (33%), followed by Deloitte (20%).