We believe talent is one of the critical capabilities foundational to delivering on our corporate strategy. Intentional human capital management strategies enable us to attract, develop and retain our employees. Marathon Oil also believes in creating a safe, clean and ethical environment where employees feel empowered to make a difference to achieve business objectives.
Our vice president of Human Resources has leadership accountability for our talent management policies and programs and reports directly to our CEO. Our board of directors provides oversight to our human capital management strategies as an integral part of our overall Enterprise Risk Management process. Due to the importance of our workforce capabilities, the board receives updates on our human capital management on a regular cadence.
We are focused on:
- Delivering an employee experience and supportive culture that encourages employees to collaborate, take ownership, act boldly and deliver results.
- Building a culture of inclusion so that everyone can bring their best selves to work.
- Supporting employee development by building critical skills and competencies that support the long-term business needs of the organization.
- Developing our leaders with experiences and exposures needed for success in future senior leadership roles.
Respectful relationships are core to our culture. Our current Code of Business Conduct is applicable to all Marathon Oil employees, officers, directors and other parties acting within the scope of representing Marathon Oil. It prohibits workplace harassment, violence or discrimination against anyone based on race, age, national origin, sexual orientation, gender identity and other factors. This code applies to all aspects of employment at Marathon Oil – recruitment, training, development, compensation, performance management and benefits.
Through recruiting, training, workforce integration, education and vocational programs, we strive to have a workforce reflective of the areas in which we operate. As a result of prioritized nationalization efforts, 90% of our Marathon EG Production Limited (MEGPL) workforce was Equatoguinean in 2020. See the EG Highlight for more information on our EG workforce.
Our 2020 combined voluntary and involuntary turnover rate, not including retirements, was 15%, the same as in 2019. Our 2020 retirement rate was 4.6%, compared to 1.3% in 2019. In March 2020, in response to low commodity prices and reduced oil demand due to COVID-19, we took unfortunate but necessary cost-cutting measures, including a headcount reduction of approximately 16% of our U.S. workforce. In conjunction with these actions, executive officers’ base salaries were reduced by 10% and the board reduced its cash retainer by 20% for the remainder of 2020. Separated employees were eligible for severance, extended outplacement services and health benefits.
- ᵃ Includes all regular, casual and inpatriate records.
- ᵃ Includes all regular, casual, third-country national and expatriate records.
- ᵃ Data includes voluntary and involuntary turnovers.
- ᵇ Data does not include total retirement rates of 4.6%, 1.3%, 2.4%, 2.9% and 5.1% for 2020, 2019, 2018, 2017 and 2016, respectively.
- ᶜ Includes terminations for all regular, casual, third-country national and expatriate employees during 2020.
During the first quarter of 2021, Marathon Oil announced that we expected to drive further cash-cost reductions in 2021. This included the board reducing its annual compensation by 25%, the CEO’s total direct compensation by 25%, including a 35% reduction to long-term incentive awards, and an 8% reduction in our U.S. workforce. This action was a necessary part of a comprehensive approach we’re taking in 2021 to safeguard our financial flexibility and firmly establish a cost structure we believe will set us up to outperform our peers.
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