At Solvay, we aim to create sustainable value. Our compensation policy therefore rewards performance in line with strategy implementation and both short and long-term financial and extra-financial targets.
Solvay’s overall performance is a key driver of our compensation policy. People at all levels of the organization are rewarded with packages based on both business and sustainability objectives, with senior managers encouraged to meet demanding greenhouse gas emission targets. This balance supports both short-term business goals and sustainable value creation.
2019 was the fifth year of our Group-wide Global Performance Sharing Program. The Program has an 80/20% financial/sustainability split and aims to give our employees a stronger sense of belonging. It recognizes their contributions by involving them in Group results.
In line with our new G.R.O.W. strategy, the Board of Directors (based on the recommendation of the Compensation Committee) has revised our compensation policy, aligning the future rewards of executive leaders and the strategic direction as of January 2020.
Aligning compensation with shareholder expectations
As part of our ongoing shareholder engagement program, Solvay continues to actively reach out to shareholders to discuss our approach to governance, including compensation matters.
Solvay’s executive Compensation policy and Compensation Report was supported by 96.7% of its shareholders at last year’s Annual General Meeting. The report featured increased disclosure, reflecting input received from our shareholders as well as developments in the legislative framework.
In line with Solvay’s new G.R.O.W. strategy and new Purpose statement, our Compensation Committee reviewed the performance measures used to incentivize executive leaders to ensure they are aligned with our new strategic direction as from January 2020. Solvay believes that, together, this alignment, increased disclosure, and our existing compensation practices will ensure our compensation structure incentivizes our executive team to deliver sustained long-term performance in line with our strategy and our shareholders’ interests.
Leadership compensation in step with G.R.O.W.
Solvay’s compensation structure for its Executive Committee is designed in accordance with the “pay-for-performance” approach approved by the Board of Directors, focusing on the Company’s short-term and long-term performance. The level and structure of the compensation packages are aligned with market practices for similar functions at comparable companies.
The details of the outgoing compensation structure are set out in the dedicated section of the Management Report.