Sent to all Enbridge team members
Colleagues,
This is the time of year when we let everyone know about our corporate performance Short Term Incentive Plan (STIP) result. I’m pleased to say we have a very good outcome, consistent with our Q4 and full year 2018 financial results that we announced last Friday.
The reason for that is the great work by our teams in Gas Transmission, Liquids Pipelines, Utilities and Power, and the many service and corporate functions across the company. Here’s a recap of just some of the team’s accomplishments:
• We’ve served our customers with a high degree of reliability and a good safety record—which remains our first priority;
• Our core businesses fired on all cylinders and our financial results came in at the upper end of our guidance range;
• We successfully brought $7 billon of projects into service; made significant progress on the Line 3 Replacement Project in Canada and the U.S.; and we secured $1.8 billion of new growth projects;
• Today we have a more focused, stronger and simpler company than a year ago. We achieved this by:
o Moving to a pure pipeline and utility model because that’s what we do best;
o Selling $7.8 billion of non-core assets, more than double our target;
o Using the proceeds from non-core asset sales to accelerate debt reduction and strengthen our balance sheet; and
o We simplified our company with the buy-in of the public’s interest in our four sponsored vehicles, and the amalgamation of our Ontario utilities.
• The actions we took in 2018 have set us up for future success and we are excited about the future. We should all be proud of what we accomplished in 2018!
What’s this means for our Short-Term Incentive Plan (STIP)?
Our short-term incentive compensation plan is set-up for you to share in Enbridge’s success by linking our Company-wide goals, your Business Unit (BU) or support group objectives, and the work you do every day and the influence you have personally on our results.
I’m pleased to report that the company measure that will form part of your STIP incentive compensation for all employees is 1.87x. This great result is based on a single financial metric, our Distributable Cash Flow (DCF) performance.
Extra 5% Special Award
In addition to the STIP award I noted above, we’re providing an extra award of 5% of your total STIP award. This applies to all STIP-eligible, non-union employees below senior management (Manager level and below) who are employed by Enbridge on the STIP payment date or who retired in 2018. We are providing this award to recognize the extraordinary performance and efforts by our people in 2018.
Business Unit results
You will soon receive your business unit’s 2018 year-end STIP scorecard, outlining your business unit’s performance in 2018.
Over the next few days, your leader will share the details of your annual compensation, including applicable merit and STIP amounts. STIP awards will be paid on February 28.
In the coming days, we’ll introduce our 2019 BU and functional scorecards, setting out specific goals and objectives for 2019.
Thank you
On behalf of our Board of Directors and Executive Leadership Team, thank you for your efforts to make Enbridge the leading energy infrastructure company in North America! I look forward to discussing our business and hearing from you at our All Company Forum on February 26.