COVID-19 Response and Copper's Role
Executive Compensation
Shareholder-informed program drives pay-for-performance alignment
Element
2019 Components
FREEPORT
FOREMOST IN COPPER
Base Salary
•
Fixed cash compensation used to calculate other compensation elements
Annual Incentive
•
Annual variable cash compensation
Formula-driven plan based on pre-established
Program
(AIP)
performance weighted metrics
.
Annual cash awards capped at a
multiple of base salary
25% ESG
10%
Sustainability
15%
Safety
40%
Financial
Annual
Incentive
Program
35%
Operational
Long-Term
Incentive Program
(LTI Program)
Program is made up of 3 components:
1. Performance Share Units - PSUs (50% of LTI Program Awards) payable in shares of stock
after a 3-year performance period
Based on an ROI metric measured over 3-year performance period, adjusted with a
relative TSR modifier
2. Options (25% of LTI Program Awards) - vests over a 3 year period from grant date
3. Restricted Stock Units - RSUs (25% of LTI Program Awards) – vests over a 3 year period
from grant date
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