A balanced remuneration encouraging sustainable value creation
The compensation of all Solvay employees – starting with the Chief Executive and the members of the Executive Committee – is closely linked to the successful implementation of the Group’s strategy and to meeting its targets.
Our remuneration policy has been structured for all employees in a way that encourages sustainable value creation.
The objectives are twofold:
- Reflecting Solvay’s global performance by covering both economic and sustainability objectives.
- Encouraging the creation of sustainable value that stands the test of time while ensuring the achievement of short-term imperatives.
A variable remuneration covering 100% of Solvay’s workforce
The compensation of all employees is linked to Solvay’s performance through either a short-term incentive for managers or a Global Performance Sharing Plan for the rest of our employees. The latter was developed in 2015 in consultation with the European Works Council, and allows all employees to share financially in the Group’s performance. Global performance sharing is calculated using both financial and extra-financial objectives.
Solvay’s sustainable value creation embedded
into our remuneration policy.
By striving to meet sustainability objectives, every employee contributes to Solvay’s sustainable value creation. The Group has integrated the goals of a more sustainable development into all its managerial processes – including its remuneration policy. This impacts all employees, including the CEO and Executive Committee members.
Compensation of the Chairman of the Executive Committee: a balanced policy to encourage value creation that stands the test of time
Based on proposals by the Compensation Committee and set by the Board of Directors, the compensation of the Chairman of the Executive Committee, Jean-Pierre Clamadieu, aims at reinforcing the link between variable pay and overall business performance.
In line with market practices, and in addition to a fixed base salary, the CEO’s compensation package includes Short-Term Incentives (STI) and Long-Term Incentives (LTI). STI payout is based on the assessment of the achievement of both individual objectives and Group collective economic and extra-financial indicators. As part of our LTI, a new metric on greenhouse gas emissions is being introduced in 2017 in the Performance Share Units (PSU) payout calculation to further reinforce Solvay’s position on sustainable value creation, encompassing both financial and extra-financial performance criteria.