- The framework of our sustainable corporate governance is based in our Vision, Mission, and Core Values. Our employees take them to heart and they guide us in everything we do. Every business decision and our day to day operations are carried out with the highest of ethical standards and in compliance of federal, state, and local laws and regulations.
- Diversity of thought and experience is highly valued at Hilcorp. We are always striving to improve and encourage our employees to challenge the status quo, just as our Core Value of Innovation states, “Get Better Every Day.”
- Our Core Value of Alignment is the foundation of our pay-for-performance philosophy. Our employees, from top to bottom, are fully aligned with our performance, safety, and operational goals. “When Hilcorp Wins, We all Win,” and that means that our compensation and incentive programs are completely aligned with our metrics of success.
We are committed to our Vision, Mission, and Core Values. Our Core Value of Integrity is the ethical principle that Hilcorp and our employees represent and practice every day.
We believe it is our commitment to these high ethical standards that Hilcorp has experienced long-term success over our 30 year history, and is a preferred partner within our industry. We will continue to promote this sustainable corporate governance practice.
Code of Conduct & Ethics
- The importance of our Core Values cannot be overstated. They are fully integrated into our day to day operations and inspire our employees. They are not just plaques on a wall, we are proud to truly live them every day.
- The practice of Open Book Management is fundamental to our corporate governance structure. As a result, Hilcorp gives every employee, from top to bottom, the freedom to act like owners and the accountability that goes with it, and share in the rewards of their ownership.
- In practice, we set clear goals annually that all employees understand; we give every employee the information they need to do their job to the best of their abilities; and every employee is given a piece of equity in the company and an equitable share in the rewards they have created to meet our goals. As a result, there is complete awareness of the measure of business success and every employee is enabled to improve performance.
- Hilcorp also pursues a positive work environment through our Open Door Policy. Employees know they are encouraged to use this policy because it is demonstrated and communicated from top to bottom. Through this policy, Hilcorp is responsive to all employee needs, and concerns are addressed promptly and appropriately.
- Hilcorp provides an Ethics Hotline, monitored by a third party administrator, for any employee that feels their work situation cannot be addressed through other methods. An employee can make an anonymous call or report through the website. We also provide a 1-800 number to ensure the hotline is always easily accessible.
Pay for Performance
- Our compensation programs are fully aligned to our Core Values and our company-wide objectives. Through these programs, every employee is treated as a part owner of the company. As an owner, employees have a stake in the company’s success and failure. Therefore, we all work hard to reach our goals. Similarly, every employee is aligned with our shareholders’ interests.
- The Annual Bonus Plan is based on our critical numbers that measure Hilcorp’s performance success and provide a unifying objective, as everyone is involved in improving the critical numbers. When we meet those numbers, there is significant payout potential. On average over the last five years, employees have received about 35% of their base salaries in bonuses annually.
- Through the Buy-In Plan, all employees have the opportunity to “buy-in” to various Hilcorp projects. It is similar to a stock option, but at an individual project level. Employees have an opportunity to build long term, personal wealth as a direct result of Hilcorp’s success. It drives our entrepreneurial and innovative mindset – when you truly own what you are working on every day, you will work differently than an employee who is not an owner.
- At Hilcorp, we set big hairy audacious goals (BHAGs) every five years that we all achieve together as a team. If we are successful, every employee is rewarded with a life-changing payout. This innovative compensation plan focuses the energies of our employees to achieve a substantial growth in rate, reserves, and value within five years. Because we are all aligned, we achieved “Double Drive” and “Dream 2015,” and now we are on our way to “Northbound 275.”