Compensation and Benefits

Comprehensive functional evaluations

Compensation and benefits provide monetary value to employees in exchange for their work performed. Sika implemented a globally uniform compensation policy based on comprehensive functional evaluations and compensation analyses and on regular analysis of local benchmark data. The Sika compensation policy ensures the external marketability of the company while establishing, internally, as equitable a salary structure as possible. The concept for worldwide protection of employees against the risks of accident and illness was further refined through provision for the full integration of location-specific factors.

Sika Senior Management

Sika maintains a variable compensation model for members of Sika Senior Management. The variable portion of compensation is geared to relative parameters, e.g. comparison of the relevant rates with those of competitors,
as well as to liquidity-related parameters such as cash flow or net working capital. This system thereby upholds the corporate strategy, even in crisis-stricken years. For the members of Group Management the same variable compensation model applies as for members of Sika Senior Management.

The variable salary portion is paid out either 20% or 40% in Sika shares; members of Group Management can choose this percentage freely. In addition to this there is a long-term variable salary component based on a target to be met within a period of three years. This portion is paid out entirely in Sika shares. In both cases, these shares, allocated at fair market value, are excluded from trading for a period of four years.