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Tullow measures the Key Performance Indicators it believes are useful in assessing the group's performance against our strategic objectives. This year we have added additional KPIs to better align our performance to our strategy.
Tullow tracks both financial and non-financial metrics across the Group to help us manage our long-term performance and achieve our business plans.
In 2013, the Executive Directors reviewed Tullow's existing KPIs alongside the components of its business model to ensure appropriate measures were in place that reflect the Group's strategy priorities and business plans. As a result, two additional corporate KPIs have been added - Contingent 2c resources added and finding costs which relate to our goal of adding an average of 200 mmboe of contingent resources each year. The Executive considered that all its existing KPIs were still relevant in assessing the overall health and performance of the business. The corporate KPIs have now also been brought more in line with the remuneration performance targets.
Executive Director remuneration is directly linked to the Group's performance. The performance targets set for Executive Directors was updated for 2013, in line with an overhaul of the Group's remuneration policy. Executive Directors' performance-related pay is decided by a balanced scorecard of financial and non-financial objectives that is linked to TSR, the EHS scorecard, working interest production, operating costs per barrel of oil equivalent (boe), finding costs per boe and a set of strategic targets relevant for the year. Each objective has a percentage weighting and financial indicators have a baseline and a stretch performance target.
In 2013, the Committee awarded Executive Directors and employees 30% of the corporate element of their annual bonus potential. Further information is in the Directors' Remuneration Report (PDF 0.12MB).