CLB 2019 Proxy Statement

22 COMPENSATION DISCUSSION AND ANALYSIS Introduction This Compensation Discussion and Analysis ("CD&A") describes our executive compensation program as it relates to our Named Executive Officers ("NEOs"). This CD&A also summarizes the Compensation Committee's process for making pay decisions, as well as its rationale for specific decisions related to the 2018 performance year. Our NEOs for 2018 are listed below, along with the title that each NEO held during the 2018 year: NEO Position David M. Demshur Chairman and Chief Executive Officer (and former President) Lawrence Bruno President Christopher S. Hill Senior Vice President and Chief Financial Officer Richard L. Bergmark Executive Vice President (and former Chief Financial Officer) Monty L. Davis Senior Vice President and Chief Operating Officer Certain executive positions and titles changed during or following the 2018 year. Effective February 1, 2018, the role of the Company's President, held by David Demshur, was separated from Mr. Demshur's other roles and filled by Lawrence Bruno, formerly Vice President, Reservoir Description. Mr. Demshur has continued to serve as the Chairman and Chief Executive Officer of the Company. As previously disclosed, Messrs. Bergmark and Davis notified the Company during 2018 of their intention to retire from the Company, effective December 31, 2018. Mr. Bergmark also elected to resign from his role as Chief Financial Officer, effective at the conclusion of the 2018 annual meeting of shareholders; however, Mr. Bergmark continued to serve as Executive Vice President until his retirement. Mr. Hill was named Senior Vice President and Chief Financial Officer when Mr. Bergmark resigned from his role as Chief Financial Officer on May 24, 2018. Effective January 1, 2019, Lawrence Bruno, the Company's current President, also began serving as the Chief Operating Officer. Executive Summary 2018 Business Achievements Over the course of our 23 years as a publicly-traded company, we have posted an annualized compounded shareholder return of 14.5%, according to Bloomberg Financial, compared to the S&P 500, which was up 8.5% compounded annually over that period. See "Ownership of Securities - Performance Graph" on page 8 of this proxy statement for a graph that compares our five- year cumulative total shareholder return to the S&P 500 Index and the Philadelphia Oil Services Index ("OSX"). In addition, during 2018, we continued to produce strong relative and absolute results in several areas: • Based on Bloomberg's calculations using the latest comparable data available, our return on invested capital ("ROIC") was the highest of the Bloomberg Oil and Gas Services Comp Group ("Comp Group"). Moreover, our ROIC exceeded the Comp Group average ROIC by approximately 19.3 percentage points; • Revenue growth of 8% for the year was at the 60th percentile of the Comp Group; • Operating margin of 18% was at the 70th percentile of the Comp Group; • EPS growth of 16% was at the 50th percentile of the Comp Group; • Safety performance was the highest to date with achieving the fewest total accidents and a record low TRIR of 0.45, a 4% improvement over 2017. From 2015 to 2018, safety gains have been driven by exceptional efforts recording the four best safety results in Company history while maintaining industry low TRIR's below 0.50;