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In Big Jump, Half of Oil Chiefs Get Pay Tied to Investor Returns

  • Just 10% linked in 2017, but investor angst boosts 2018 number
  • Still, questions remain about amount of compensation affected
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Photographer: Angel Navarrete/Bloomberg

About half of oil company executives are now finding their compensation shackled to shareholder returns rather than just product output, up from 10 percent a year earlier.

Occidental Petroleum Corp., Hess Corp., EOG Resources Inc. and Anadarko Petroleum Corp. are among 19 explorers tying executive pay to investor returns starting in 2018, according to a survey of 39 companies by Goldman Sachs Group Inc. The changes mainly target short-term incentives -- salaries and annual bonuses -- and the metrics used can run from per share production to management of employed capital and underlying costs.