This document discusses strategies for managing compensation in the oil and gas industry during an economic downturn. It notes that oil and gas company budgets are projected to decrease 40% in 2015, which will likely drive down overall salary increases to the national median of around 3%. Variable pay pools may decrease as well, so companies should focus rewards on retaining critical talent and differentiating pay based on individual performance. Long-term incentive plans also pose challenges given stock price volatility, so companies will need to adjust grants to balance various stakeholder interests. The key challenge for HR in 2015 will be controlling costs while maintaining a link between pay and performance.