Annual Performance Incentive Plan
EX-10.33 3 d464712dex1033.htm ANNUAL PERFORMANCE INCENTIVE PLAN FOR NAMED EXECUTIVE OFFICERS Annual Performance Incentive Plan for Named Executive Officers Exhibit 10.33
Annual Performance Incentive Plan
| • | Participation in this plan is determined by the Compensation Committee. |
| • | Target payout is 50% of participant’s annual salary on the last day of the performance period. |
| • | PXP performance will be measured against the performance of the following index to determine the payout. |
| | • | S&P Oil & Gas E&P (SPSIOP) |
| • | The performance period will be the prior calendar year. |
| • | Performance will be measured from the closing price on the last trading day of the year proceeding the performance period, through the last trading day of the performance period. |
| • | PXP’s stock performance will be stated in percentage of change in price over the performance period. |
| | • | For example: Stock closes at 40.00 on 12/30/11 and has a closing price of 44.00 on 12/30/12. The percentage change is 10%. |
| • | Index performance will be stated in percent change in price over the performance period. |
| | • | For example: S&P Oil & Gas E&P index closes at 7,000.00 on 12/30/11 and has a closing price of 8,400.00 on 12/30/12. The percentage change is 20%. |
| • | To calculate the impact of PXP stock versus the index the following steps will be taken. |
| | • | Calculate the % in change for PXP stock over the performance period. |
| | • | Calculate the % in change for the index over the performance period. |
| | • | Subtract the index performance from PXP performance to determine “Performance Delta”. |
| | • | Multiply the performance delta by four to obtain the percentage which is added to or subtracted from the target to obtain the payout percentage. |
| | |
| Performance Delta | | Payout Percentage |
| 25 | | 200% |
| 20 | | 180% |
| 15 | | 160% |
| 10 | | 140% |
| 5 | | 120% |
| 0 | | 100% |
| -5 | | -80% |
| -10 | | -60% |
| -15 | | -40% |
| -20 | | -20% |
| -25 | | -0% |
