The Compensation Report describes the compensation principles and programs, as well as the governance framework related to the compensation of the Board of Directors and the members of Sika’s Group Management. The report also provides details regarding the compensation programs and the payments made to members of the Board of Directors and of Group Management in the 2021 business year.
The Compensation Report is written in accordance with the Ordinance against Excessive Compensation in Listed Stock Corporations, the standard relating to information on Corporate Governance of the SIX Swiss Exchange, and the principles of the Swiss Code of Best Practice for Corporate Governance by economiesuisse.
"Looking ahead, we will continue to assess and review our compensation programs to ensure that they are still fulfilling their purpose in the evolving context in which the company operates and are aligned with the interests of our shareholders. We will also continue to maintain an open dialogue with our shareholders and their representatives. We would like to thank you for sharing your perspectives on executive compensation with us, and trust that you will find this report informative." Justin M. Howell, Chairman of the Nomination and Compensation Committee
ESG Performance in Remuneration
The reduction of Sika’s carbon footprint was introduced as a performance objective for the annual Performance Bonus in 2020. This objective was chosen to recognize the importance of mitigating the company’s impact on the environment and to encompass sustainability in the measurement of the performance of Group Management.
The Performance Bonus includes between 10% and 20% of ESG objectives: 10% relate to environmental matters, with the reduction of CO2 emission objective, and for certain roles, 10% relate to social matters with the health and safety and/or the leadership performance objectives.
From 2021, these ESG targets also apply to the remuneration of Sika Senior Management worldwide.