Devon Energy (DVN)

 

Available data indicates that in the last three years Mr. Nichols has received long-term incentive awards with a value of 77% of the 75^th percentile, our President, John Richels, has received long-term incentive awards with a value of 49% of the 75^th percentile, and our executive officers other than Messrs. Nichols and Richels have received long-term incentive awards near the 75^th percentile, in each case measured against long-term incentive awards for comparable executives at the comparison companies. Long-term incentives awarded to our executive officers other than Messrs. Nichols and Richels are consistent with our compensation philosophy of providing executives with the opportunity to earn long-term incentives at or near the 75^th percentile of long-term incentives paid to comparable executives at the comparison companies. However, the long-term incentives granted to Messrs. Nichols and Richels in 2005 fell significantly below that goal despite the Committee’s intention to reward each such individual for performance warranting long-term incentive awards in the range of the 75^th percentile of market long-term incentive awards. The Committee believed that our positive performance and Messrs. Nichols’ and Richels’ respective contributions to achieving our goals merited long-term incentive awards closer to the 75^th percentile of the long-term incentives paid to comparable executives at the comparison companies and adjusted Messrs. Nichols’ and Richels’ 2006 long-term incentive awards accordingly.