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This excerpt taken from the DVN DEF 14A filed Apr 28, 2008. Material
Differences in Pay Decisions for Named Executive
Officers
Mr. Nichols’ compensation is higher than that of other
currently employed executives primarily because of his
seniority, his long tenure with the Company, his status as a
founder of the Company, the compensation levels of comparable
executives of other companies against whom his compensation is
targeted, and his greater influence over and responsibility for
the entire Company (as opposed to a distinct division or
function). In addition, Mr. Nichols’ compensation
recognizes the larger leadership role he has taken with respect
to matters affecting the oil and gas industry, generally, at a
time that the industry has been subjected to increased
legislative, regulatory and media scrutiny.
Mr. Richels’ total compensation is higher than that of
other named executive officers, except for Mr. Nichols,
primarily because of his seniority, experience and stature in
the industry, his reporting relationship to the CEO, the
compensation levels of comparable executives of other companies
against whom his compensation is targeted, and his greater
influence over and responsibility for the entire Company (as
opposed to a distinct division or function). In addition,
Mr. Richels’ compensation recognizes the larger
leadership role he has taken with respect to day-to-day Company
matters as Mr. Nichols has been required to give more
attention to industry matters.
Mr. Hadden’s and Mr. Smette’s total
compensation levels reflect their roles and responsibilities as
the heads of the Company’s two operating divisions -
Mr. Hadden for exploration and production and
Mr. Smette for midstream and marketing - their
individual contributions to the Company and the officer team,
and pay levels for similar positions at our peer companies.
Because Mr. Smette also is responsible for the
Company’s hedging program and procurement strategy, his
role is somewhat unique versus our peer companies, and the
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Commitment Runs Deep
Table of Contents
Committee places less emphasis on market benchmarks when
determining his compensation.
Mr. Heatly, the Company’s vice president of
accounting, is included in the group of named executive officers
solely because he is the Company’s principal financial
officer and not because he was one of the most highly paid
executive officers. As described above, Mr. Heatly was not
a senior executive officer in 2007. Accordingly, his
compensation arrangements are more in line with other non-senior
executive officers.
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