Dril-Quip's compensation approach aims at aligning executive compensation with the Company's goals and maximizing shareholder value through performance-driven incentive programs.
Our Compensation Committee, composed of independent outside directors, is responsible for the administration of the executive compensation program. At a minimum, the Compensation Committee meets annually to determine executive compensation, incentive-based compensation plans, establish performance targets and review compensation policy and compliance with required disclosures. Dril-Quip engages a third-party consultant to benchmark compensation and benefits programs to ensure they align with best practices and are competitive with those of our peers.
The executive compensation program has four key objectives:
- Align executive compensation with the Company and individual performance and the appropriate peer group comparisons
- Produce long-term, positive results for stockholders
- Create a proper balance between building stockholder wealth and executive wealth
- Provide market-competitive compensation and benefits to attract, motivate and retain a strong workforce
Dril-Quip maintains regular and transparent communication with our shareholders in order to gather feedback on the executive compensation program. Dril-Quip continues to receive a significant amount of support for the executive compensation program from our shareholders in the past fiscal years. For more information about the compensation approach, additional details are available in the Compensation Discussion and Analysis section of our Proxy Statement.