Compensation of the Board of Directors
In order to guarantee the independence of the members of the Board of Directors in exercising their supervisory duties, their compensation consists of a fixed remuneration only. The compensation is delivered partially in cash and partially in restricted shares, in order to strengthen the alignment to shareholders’ interests.
Compensation of the Group Management
Sika’s compensation programs reflect a commitment to attract, develop and retain qualified, talented and engaged executives. They are designed to motivate executives to achieve the overall business objectives and to create sustainable shareholder value. The compensation programs are based on the following principles:
- Pay for performance and sustainable success
Compensation of Group Management is linked to Sika’s performance and to individual performance. Through a well-balanced combination of incentive programs, both the annual performance and long-term success are being rewarded.
- Alignment with shareholder interests
A significant portion of compensation is delivered in the form of restricted shares to align the interests of executives with those of the shareholders.
- Market competitiveness
Compensation is regularly benchmarked and is in line with competitive market practice.
Compensation programs are straightforward and transparent.
The compensation programs include key features that align the interests of executives with those of shareholders and are in line with good practice in corporate governance.
What we DO
- Conduct an annual review of the compensation policy and programs
- Maintain compensation plans with a strong link between pay and performance
- Conduct a rigorous performance management process
- Maintain compensation plans designed to align executive compensation with long-term shareholders' interest
- Offer employment contracts with a notice period of maximum twelve months
What we Don’t Do
- Provide discretionary compensation payments
- Reward inappropriate or excessive risk taking or short-term profit maximization at the expense of the long-term health of the company
- Pay dividend equivalents on performance-contingent deferred units that have not been earned yet based on the company’s performance
- Guarantee future base salary increases, non-performance based incentive payments, or unrestricted equity compensation
- Have pre-arranged individual severance agreements or special change-in-control compensation agreements