Bedford Group/TRANSEARCH Publishes 1st Annual 2022 Board and Executive Compensation Report Covering the Global Oil & Gas Industry

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Mar 07, 2023, 10:00 ET

CALGARY, AB, March 7, 2023 /PRNewswire/ - Bedford Group/TRANSEARCH announced today the publication of the 2022 Board and Executive Compensation Report for the Oil & Gas industry. Compensation data and insights from 150 Oil & Gas companies were analyzed for this report, including over 684 named executive officers and 850 board members.

"The Oil & Gas industry is experiencing a surge in demand for energy and greater participation from countries that were less active," said Frank Galati, Managing Partner at The Bedford Group. "As a result, we are seeing more activity in the energy sector for participants that were traditionally discounted. Despite the ongoing challenges such as fluctuating oil prices and tightening capital markets, we anticipate an increase in executive compensation driven by an exodus of senior executive talent in this rapidly changing industry."

Over the past few years, the oil and gas industry has faced significant challenges due to the COVID-19 pandemic in 2020, the OPEC+ talks' collapse, and the price war between Russia and Saudi Arabia. However, 2021 brought a strong recovery, with oil prices climbing higher than they had in six years. Despite the low investor interest and greater calls for net zero carbon future, oil demand returned to almost pre-COVID-19 levels by the end of 2021. Throughout these years Oil & Gas companies revamped their business plans and implemented capital discipline as well as focused on financial health, and their commitment to climate change, setting the industry up for a strong financial start in 2023. Deloitte predicts that healthy balance sheets heading into 2023 will help companies to overcome the lack of investments in recent years, promoting an "accelerated energy transition".

Stephen Diotte, Bedford's Compensation Partner, added that the expectation is that there will be upward pressure on compensation in Oil & Gas driven by three things. "First, is the ongoing strength of oil prices. Second, there will be lingering pressure following the extended period of depressed income from 2014-2021. Third, we have seen an exodus of senior executive talent in resource-based companies over the past three to five years as baby-boomers cash out and retire which has created a void of top talent," Diotte noted.

Despite growing awareness of the benefits of increased diversity and female representation in the Oil and Gas industry, the female population remains underrepresented. Of 160 CEOs, 3 were female, for a total of 1.9%. Of the remaining NEOs analyzed in this report, 12.0% identified as female. "A lot more work needs to be done on the area of board diversity," stated Galati.

With oil's uncertain future, Bedford presents its first annual Report on Compensation in Oil & Gas. We are excited to continue monitoring the evolution of the industry and providing year-over-year analysis of compensation changes in the years to come.

The 2022 Board and Executive Compensation Report for the Oil & Gas Industry can be accessed on the Company's website at Compensation Reports | The Bedford Group/TRANSEARCH

About Bedford Group/TRANSEARCH

Bedford Group/TRANSEARCH is one of the Top 10 largest retained executive search firms in the world, with 60 offices in 40 countries. With North American offices based in Cambridge, Massachusetts and Toronto, Canada, Bedford Group provides premium executive search, compensation strategy, and talent management solutions to a diverse group of mining clients of all sizes across the world. In addition to retained executive search and compensation strategy, Bedford provides services in succession planning, culture, organizational strategy, diversity and inclusion, leadership assessment and virtual onboarding.

SOURCE Bedford Group/TRANSEARCH