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Item5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
April 1, 2020, in response to the impact of COVID-19 and declining commodity prices on the business of Murphy Oil Corporation (the “Company”), the Executive Compensation Committee (the “Committee”) of the Board of Directors of the Company approved significant reductions in the base salaries of the executives of the Company (the “Covid Reductions”). The base salary of Roger W. Jenkins, President and Chief Executive Officer of the Company, was reduced by 35% and base salaries for other executives were reduced by as much as 30% with an average of 22%.
2, 2021, the Committee approved, effective as of February 1, 2021, compensation adjustments that include partial restoration of the base salaries for the Company’s executives, including for its named executive officers, Mr. Jenkins, David R. Looney, Executive Vice President and Chief Financial Officer of the Company, and Eric M. Hambly, Executive Vice President, Operations of the Company.However, neither Mr. Jenkins nor Mr. Looney had their base salary fully restored to the level in effect prior to the Covid Reductions.The base salaries for Mr. Jenkins and Mr. Looney
were increased to $1,000,000 and $600,000, respectively, but they remained approximately 25% and 12%, respectively, lower than they were prior to the Covid Reductions.
In addition, the base salary for Mr. Hambly was increased to $575,000, which is approximately 5% greater than it was prior to the Covid Reductions. This increase reflects a partial restoration of his base salary and an increase to account for the additional responsibilities he assumed in connection with his promotion to his current position on June 1, 2020.
These salary changes for 2021 are only one part of a multi-year review and compensation redesign process, driven by changes in the Company’s asset portfolio, evolving industry practices, and shareholder feedback. The
Company believes the changes it has made serve to better align the compensation of its executives and directors with the interests of its shareholders, and supports its focus on cash flow generation, capital returns, and environmental stewardship. Further information is set forth in the Press Release attached as Exhibit 99.1 hereto.
The compensation adjustments for Messrs. Jenkins, Looney and Hambly approved by the Committee are set forth in the table below.
Reduction Base Salary ($)
Post-COVID Reduction Base Salary ($)
Adjusted 2021 Base Salary ($)
Change in Base Salary From Pre-COVID Level (%)
2020 Annual Incentive Plan Target Bonus (% of Base Salary)
2021 Annual Incentive Plan Target Bonus (% of Base Salary)