Letter from the Chairwoman of the Compensation Committee
On behalf of the Board of Directors and the Compensation Committee, I am pleased to introduce the Compensation Report of SIG Combibloc Group AG (“SIG” or the “Company”) for the year ended 31 December 2020. This report on compensation complements our business, financial and corporate governance reports and describes SIG’s compensation system and its governance, as well as the underlying principles that ensure that compensation, particularly the variable components, are linked to the overall performance of SIG.
The principles guiding SIG’s compensation framework are to attract, engage and retain executives and employees, to drive sustainable performance and to encourage behaviours that are in line with SIG’s values as well as with the long-term interests of shareholders. The Compensation Committee regularly assesses, reviews and develops the compensation framework to ensure that it is aligned with these principles.
SIG welcomes feedback from its shareholders. In 2020, we increased the level of engagement with shareholders and worked to consider and address shareholders’ comments and questions. As you will read in the 2020 Compensation Report, certain changes and additions will be incorporated from 2021 onwards. These include the addition of a clawback mechanism in the equity-based Long-Term Incentive Plan (“LTIP”), an ESG metric in the Short-Term Incentive Plan (“STIP”), increased levels of disclosure regarding non-compete provisions as well as higher transparency regarding attainment of compensation-relevant performance metrics.
To create a stronger shareholder alignment and performance orientation within the broader leadership team below the Group Executive Board, an Equity Investment Plan was successfully implemented in 2020. In addition to fostering strong shareholder alignment also below the Group Executive Board level, the plan will enhance SIG’s attractiveness as an “employer of choice” in an increasingly competitive employment market.
The principle of equal pay recognises that women and men are entitled to equal pay for performing work of equal value. In 2020, equal pay gained increasing attention from the Compensation Committee, as new regulatory developments shape the global landscape. The Compensation Committee has reviewed the gender pay analysis of our main Swiss company, conducted by an independent third party. We are happy to report that the analysis confirmed that SIG is compliant with the requirements of Swiss law. The Compensation Committee will further monitor this topic in an international context.
At the upcoming Annual General Meeting (“AGM”), we will ask our shareholders to approve prospectively, in binding votes, the maximum aggregate amount of compensation for the Board of Directors until the next AGM in 2022 and the maximum aggregate amount of compensation for the Group Executive Board for the year 2022. Further, this Compensation Report will be submitted to shareholders for a non-binding, consultative vote.
We believe that this report includes all relevant information regarding SIG’s compensation system and that our remuneration system rewards performance in a balanced and sustainable manner that aligns well with shareholders’ interests and makes SIG an attractive employer.
On behalf of SIG, the Compensation Committee and the entire Board of Directors, I would like to thank you, our shareholders, for your contributions and your continued trust in SIG.
Chairwoman of the Compensation Committee