ESG Report - Report - Page 70
Linkage of Executive Compensation to ESG and GHG Emissions Metrics
Annual Bonus Plan - Valero’s annual bonus program
includes both HSE performance measures and
ESG efforts and improvements, which contain
multiple objectives, including those related to
D&I, environmental stewardship, sustainability,
compliance, corporate citizenship and community.
In 2022, we made performance within the Health,
Safety and Environment sub-component of the
annual bonus program more difficult to achieve by
adjusting targets for certain metrics and through the
implementation of a severity/volume enhancer on the
Environmental Scorecard Incidents metric.
Long-Term Incentive (LTI) Program - In 2021, our
Human Resources and Compensation Committee
strengthened the ties between executive
compensation and ESG priorities through the addition
of an energy transition modifier to our LTI program,
tying executive compensation with our publicly
disclosed GHG emissions reduction/displacement
targets and the deployment of capital to low-carbon
initiatives.
In 2022, our performance exceeded our 2025 GHG
reduction/displacement target, which is three years
ahead of schedule. Accordingly, in February 2023, our
Human Resources and Compensation Committee
approved a modification to our energy transition
performance modifier for performance shares
granted beginning in 2023 that continues on to our
2035 GHG reduction/displacement target.
Awards
For the seventh year in a row, Institutional Investor Magazine named Valero among its “Most Honored
Companies,” based on results across several categories of its 2023 All-America Executive Team rankings.
Out of over 1,300 companies receiving votes across 44 sectors, 10% earned the “Most Honored” distinction.
The investment publication determined the rankings from votes of over 3,100 investors and over 330
research analysts who evaluated companies and executives.
• 1st Place Awards in the Integrated Oil sector by
Research Analysts:
• Best CEO – Joe Gorder
• Best CFO – Jason Fraser
• Best IR Professional – Homer Bhullar
• We also ranked #1 in the Integrated Oil sector
Joe Gorder
awards for Best IR Team, Best IR Program, Best
Chairman and Chief
ESG Program and Best Company Board by
Executive Officer until
June 30, 2023;
research analysts.
Awarded S&P Platts 2022
Energy Company of the Year.
70
Executive Chairman
of the Board starting
July 1, 2023.
Jason Fraser
Homer Bhullar
Executive Vice
President and Chief
Financial Officer.
Vice President
Investor Relations
and Finance.
