Pay and benefits

We believe that by stimulating employee motivation, as well as loyalty to our values and our Company, we will deliver better results. In terms of compensation and other employee benefits, this means the following:

We view salary and other forms of reward and compensation as one of the tools to attract, motivate, develop, and retain the critical competence the Company needs to realize its ambitions.Below are general and executive-level criteria for remuneration and rewards (irrespective of locale/geography).

General principles for the remuneration of employees

Key compensation components

General principles for the remuneration of senior executives

Components of remuneration of senior executives

The main element of the remuneration package is the annual base salary. This is normally evaluated once a year according to individual performance, market competitiveness, and (local) labor market trends.

As a key component of the total remuneration package, the annual, variable pay scheme emphasizes the link between performance and pay, and it aims to be motivational. It aligns the senior executives with relevant, clear targets derived from the overall strategic goals. The variable pay scheme takes into consideration both key financial targets and individual targets (derived from the annual operating plan). For the CEO, maximum annual payments can be 75% of base salary. For the other senior executives, this varies by position up to 50% of base salary. The Board of Directors reserves the right to make additional awards for exceptional performance.