COVID-19 Response and Copper's Role
Executive Compensation
Committed to Best Practices
FREEPORT
FOREMOST IN COPPER
Cash
Paying for Performance:
67% of target compensation is delivered in equity, aligning
CEO's interests with those of shareholders
87% of target total direct compensation is at-risk
COVID-19 Impact on Compensation Program:
From May through the end of 2020, CEO and CFO salaries
cut by 25%, reflecting prudent measures during COVID-19
management
Only 10% of their reduced salaries will be payable in cash
during 2020, with the remainder paid in award of restricted
stock units
Other Compensation Program Best Practices:
•
•
•
•
Claw-back policies
Minimum share ownership requirements
Double-trigger change of control provisions
No excise tax gross-ups
No hedging of company stock
No excessive pledging of company stock
Appropriate use of equity incentives
2019 Compensation Mix
(CEO % shown)
Total Compensation at Risk: 87%
17%
Options
13%
Base Salary
17%
Restricted
Stock Units
Stock
33%
Performance
Share Units
20%
Annual
Incentive
Program
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