As part of Suncor's efforts to reward high performance and encourage employees to work together to achieve common goals, a long term performance-based stock option incentive plan — SunShare — was introduced to employees in April 2002.
The program was a key component of an attractive total compensation package that provided eligible employees the opportunity to earn more when Suncor performed well, setting Suncor apart from other employers.
Suncor officially met all of the SunShare targets — doubling the company's share price from April 2002 and achieving an average return on capital employed (ROCE) of 15 percent between 2002 and 2007. As a result, all stock options for eligible employees vested on
April 30, 2008 and employees were able to share in the company's success.
After the successful completion of the first SunShare plan, Suncor developed a new long-term incentive plan for employees. At Suncor's annual general meeting on April 26, 2007, shareholders approved the SunShare 2012 plan.
This new performance-based long-term incentive plan for Suncor regular full- and part-time employees has two components: performance stock options and restricted share units. Targets for SunShare 2012 are measured against share price performance and achieving top quartile Total Shareholder Return relative to a peer group of companies.
“We are delighted to again offer a unique performance based long-term incentive plan to employees. This new plan is important because it focuses us on Suncor's success and is a real vote of confidence from our shareholders that our employees can deliver,” explains Sue Lee, Suncor's senior vice president, human resources and communication.
“When we all achieve our growth goals and the measures in the plan, we will feel a huge sense of pride for our accomplishments and we will be able to share in our success through rewards created for both employees and shareholders.”