5 5 4 Incentive Compensation Incentive compensation is a variable elemen t of compensation comp rising annual cash bonuses and long-term, at-risk, share-base d compensation. Incent ive compensation is not guaranteed and is subject to the achievement of corporate and individual goals by each Named Executive Officer. Incentive Compensation Targets Targeted awards of each element of incentiv e compensation to Named Executive Officers are set each year as a percentage of base salary. The targeted awards place a greater emphasis on long-term, at-risk, share-base d compensation. Awards of each element of incentive compensation may range from 0% to a maximum of 200% of base salary at the time of grant based on the CESGC’s evalua tion of the Corporation’s performance and each Named Executive Office r’s performance against the Corporate Goals (as defined below) and individual objectives. Awards have been capped at 200% of base salary in order to mitigate excessive risk-taking and limit potential windfalls. Historically, the Corporation has recognized outperformance through the award of above target cash bonuses while keeping awards of other incent ive compensation at target. The President & CEO and the other Named Executive Officers are not guaranteed an award of any incentive compensation under poor market conditions and it is possible for the President & CEO and the other Named Executive Officers to receive no incentive compensation. The CESGC continuously reviews its compensation program and considers compensation best practices. The compensation program is structured such that more than 50% of share-based incentive compensation is performance-based for all Named Executive Officers. As well, at-risk, share-based compen sation constitutes a greater proportion of overall compensation ensuring alignment with shareholders. For 2021, the targeted awards for the Named Executive Offi cers (expressed as a percentage of base salary) are illustrated below. The CESGC and Board retain final discretion to modify an award when considered appropriate but this discretion will only be exercised in extraordinary circumstances and will be disclosed if such discretion is ever exercised.