Solvay is committed to a balanced compensation policy for all its people, from our CEO and Executive Committee members to our teams worldwide. Our policy encourages sustainable value creation and reflects the essential balance between long and short-term. Variable elements of compensation depend on implementing the Group’s strategy and meeting our targets, both financial and extra-financial.
Solvay’s compensation policy is closely linked to the Group’s overall performance. Packages incorporate both business and sustainability objectives, including demanding targets for senior managers on greenhouse gas emissions. This dual approach both encourages sustainable value creation and delivers on short-term business goals.
Because we believe that each one of our people contributes to driving Solvay’s performance on both fronts, compensation for all employees includes a variable component. For managers, this involves short-term incentives, while other employees are all part of our Global Performance Sharing Plan, based on financial and extra-financial targets. This annual program was deployed for the fourth consecutive year in 2018.
Compensation is a powerful tool to communicate on the way we work and on our priorities, as well as on the alignment between the Group’s values and actions. Compensation must be fair and well positioned in our market ecosystem in order to attract and retain the top talents.Amparo Moraleda, Board Member
A robust approach to CEO compensation
Compensation is an important part of discussions within Solvay’s ongoing shareholder engagement program. We actively listen to our shareholders and get their views on our approach to governance, including compensation.
In line with market practices, our Chief Executive Officer’s compensation package includes Short-Term Incentives (STI) and Long-Term Incentives (LTI), as well as a fixed base salary. In this transition period, with the arrival of our new CEO, there will be no change to the structure of the CEO’s compensation. The details of the outgoing CEO’s compensation are set out in the dedicated section of the Management Report.
Purpose: The base salary reflects the individual’s experience, skills, duties, and responsibilities, and the contribution of the individual and role within the Group.
STI (Short-term incentives)
Purpose: Short-term incentives are linked partly to Group performance and partly to individual performance to drive and reward the overall annual performance of executives.
LTI (Long-term incentives)
Purpose: A 50/50 mix of stock options (SOP) and performance share units (PSU) offering a performance-contingent vehicle to incentivize executives to help deliver Solvay’s long-term strategic objectives.
1 new criteria applicable with effects from LTIs granted in 2018