We seek board members with the background, experience and demonstrated capabilities to provide critical analysis and opinions in the best interest of Marathon Oil and our shareholders. In 2017, our board included two members from under-represented minorities, one of whom was also a woman. This represents 25 percent and 12 percent of our board, respectively. Directors cannot serve on our board beyond the last day of the board election term during which they reach 72 years of age. In 2017, our board members ranged in age from 56 to 71 years.
The Marathon Oil board met 12 times in 2017, with approximately 96 percent attendance for board and committee meetings, and non-employee directors held seven executive sessions at regularly scheduled board meetings.
Compensation of the Marathon Oil CEO and other executive officers is based on the Company’s financial performance and operational results, and recommended by the board’s Compensation Committee. The primary objectives of our executive compensation program are to pay for performance, encourage creation of long-term stockholder value and pay competitively. By design, a significant portion of our executive officers’ overall compensation, including annual cash bonuses and long-term incentive awards, is “performance-based,” and the opportunity to earn value is largely dependent on Company and individual performance.
In 2017, our Compensation Committee demonstrated its continued commitment to corporate governance and sound compensation practices, further aligning the interests of executive officers with the long-term interests of stockholders. Based on the committee’s review of our practices and on shareholder feedback, executive compensation in 2018 will include enhanced financial metrics for cash return on invested capital (CROIC) and cash flow per debt adjusted share (CFPDAS), double-trigger equity vesting and peer group refinements. For detailed information on how 2017 executive compensation was determined and our overall compensation practices, please see our 2018 Proxy Statement.
As a responsible operator, Marathon Oil continued to strengthen the systems, policies and ethical practices that guide our business and relationships.
Marathon Oil uses well-established business processes to evaluate climate change risk in our investment decisions, and engages with external stakeholders to understand their perspectives.
Marathon Oil and our workforce were deeply affected by the record-shattering storm. But we cared for each other, our neighbors and communities, while continuing critical business functions and safeguarding our South Texas Eagle Ford asset.
We’re expanding digital oilfield capabilities throughout our U.S. unconventional resource plays. They’re allowing us to automate field operations, transmit and manage large amounts of data, perform site and equipment surveillance remotely, and analyze and optimize operations.
Since 2002, Marathon Oil has been the operator of a world-class integrated gas business in Equatorial Guinea. We’re striving to bring progress, opportunities and national capacity to the community and host nation, while building long-term shareholder value.