At Devon Energy, our vision is to be the premier independent oil and natural gas producer in North America.
We strive to deliver industry-leading results, starting with the health and safety of our employees and the communities where we live and work. We seek to set the standard as a good neighbor, a valued community partner, a caring environmental steward and a model employer.
Our motto is Commitment Runs Deep.
We take this to heart and apply it to everyone who has a stake in our success – investors, employees and neighbors alike.
We continually work to improve the way we operate, and that includes communication. As always, we want to speak clearly and directly to each and every stakeholder with an interest in what we’re doing. This 2016 Corporate Social Responsibility Report is designed to do just that; it’s comprehensive, yet also easily divided by topic. However it’s used, we hope it facilitates further discussion of issues important to all of us.
This report covers operations and activities at Devon in 2016. It’s an update from our last report in 2015 and represents the latest chapter in a chronicle of corporate social responsibility dating back to the founding of our company by John and Larry Nichols in 1971.
We will continue to update our reporting on this website.
Letter to Stakeholders
A PLAN TO DO EVEN BETTER
Perhaps the biggest challenge we face is opposition to fossil fuels. It’s a challenge we’re prepared to answer, because the world needs energy – and responsible citizens like Devon to produce it. Safe and comfortable homes, clean water and abundant food all require energy. It’s the lifeblood of economic progress and technological advancement worldwide.
Actions speak louder than words, so please know this: our company is focused on delivering results. That’s one of our values, along with doing the right thing and being a good neighbor. Our results have positioned Devon as a highly regarded industry leader, generating returns for shareholders, support for communities, satisfying work for employees and environmental health and safety for our neighbors.
At Devon, we establish trust among our neighbors by doing what we say we’re going to do.
And so we forge ahead with our values intact and our stakeholders in mind. We invest in our communities with generous grants to schools and nonprofits and with employees volunteering thousands of hours in neighborhoods to achieve goals we all share. We continually sharpen our environmental focus, reflective of our commitment to air quality, water management and industry-leading business practices designed to preserve and protect natural resources and wildlife. We participate in our system of rules and laws, backing candidates and issues that recognize the value we create. And all of this is possible only because our people work so hard to innovate and bring about better performance.
At Devon, we have, quite literally, put a stake in the ground. Stamped in the floor of our headquarters’ entryway for every visitor to see: “Integrity defines the core of every relationship we have.” This sums up our values. Everyone who works for Devon knows what’s expected.
And, at the end of the day, we go home to our loved ones. We’re not some faceless corporation, but a strong group of caring and engaged individuals working hard to make a positive difference in the communities we’re proud to call home. Corporate social responsibility is synonymous with our integrity. We’re proud of what we’ve achieved since we began 45 years ago, and we’re busy executing on our plan to do even better.
President and CEO
We will continually seek to understand our relationship to the environment and adopt technically sound and economically feasible controls that will avoid or mitigate negative impact.
Health & Safety
EXCEPTIONAL EXECUTION BEGINS WITH SAFETY AND ENVIRONMENTAL COMMITMENT
PARTNERING WITH OUR NEIGHBORS
We promote safe, smart and vibrant communities in the areas where we operate.
EXPERIENCE, CHARACTER DEFINE DEVON'S LEADERSHIP
Not only does integrity define our corporate relationships, it drives our culture and guides our governance.
Devon is led by a nine-member board of directors, including seven independent directors. Our non-independent directors are Chairman John Richels and President and CEO Dave Hager.
The board is composed of seven men and two women. There are four committees — Audit, Compensation, Reserves and Governance — each composed of independent members. An independent director also serves as lead director, who oversees the executive sessions of our independent board members at each regularly scheduled board meeting.
Directors are compensated for their work based on prevailing market norms. Stock awards represent a majority of the total compensation for board members, providing a strong financial incentive for sound governance.
When considering a director candidate, our Governance Committee looks first at factors such as integrity and accountability, informed judgment, peer respect and high performance standards.
Shareholders elect directors annually. If a director fails to receive the required votes in an uncontested election, the director must offer to resign, according to Devon’s bylaws. However, this provision has never been needed. At the 2016 shareholders meeting, for example, directors received an average approval of 97 percent.
Shareholder proposals are considered as part of the company’s annual proxy process. In 2016, shareholders voted on four such proposals, none of which passed. Our bylaws also afford shareholders the right to call a special meeting. Additionally, in 2016, Devon implemented proxy access rights, which allow certain investors and groups of investors to nominate director candidates and include them in the company’s proxy statement.
Devon’s Corporate Governance team reaches out to investors throughout the year to ensure that Devon’s senior leaders and board understand the issues of greatest significance to shareholders. These conversations most recently have involved proxy access, executive compensation and important environmental, social and governance matters.
Compensation for senior executives is driven primarily by goals for overall company performance and long-term investor returns. Provisions for avoiding conflicts of interest are found in the company’s code of business conduct and ethics, agreed to annually by all employees and directors.
Our senior leaders provide the board with regular updates and assessments of the various economic, environmental and social risk factors the company faces. Our executives also participate in numerous small-group meetings and field visits, plus twice yearly “town hall” meetings with all employees to discuss the company’s accomplishments and future objectives.
For more information on Devon's corporate governance structure, click here.