Incorporating ESG Performance into Executive Compensation
The evaluation of senior management’s performance, along with the policies, frameworks, standards, and structures governing their variable compensation, is established by the Remuneration Committee. By incorporating ESG (Environmental, Social, and Governance) principles, the company seeks to align senior management’s responsibilities with its sustainability objectives. Variable compensation for senior executives is tied to both financial and ESG performance metrics, ensuring that corporate and managerial goals are closely integrated.
Starting in 2024, long-term incentives for senior management will be implemented through a ownership trust, with a 10-year vesting period and clawback provisions. This approach ensures alignment with the company’s long-term performance and shareholder returns.