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Letter from the Chairwoman of the Compensation Committee

Colleen Goggins, Chairwoman of the Compensation Committee

Dear Shareholders,

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 2021. This report on compensation complements our business, financial, social responsibility 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.

In the past year, the Compensation Committee worked closely with the Nomination and Governance Committee regarding succession planning for the various personnel changes in the Group Executive Board. We are very proud that we have been able to expand the management team with both internal and external talent. At the same time, we also succeeded in broadening diversity, so that every gender is represented by at least 30% of the Group Executive Board.

SIG is convinced that Diversity, Equity and Inclusion (DE&I) as well as an open corporate culture are important drivers for innovation and successful collaboration. We are committed to ensuring a workplace where employees are treated fairly, with equal employment, compensation and development opportunities for all. The Committee closely observed the regulatory developments and market trends and will keep abreast of further developments in this area.

SIG welcomes feedback from its shareholders. In 2021, we maintained a high level of engagement with shareholders as we worked to consider and address their comments and questions. The Compensation Committee believes that the current compensation framework is working well but also continues to focus on its on-going refinement.

One of the changes to executive compensation as of 2021 was the inclusion of an ESG metric in the short-term variable compensation. This underlines management’s on-going commitment to sustainability as an integral part of SIG’s business strategy and activities. To further strengthen the ESG focus, the Compensation Committee decided to increase the weighting of the ESG metric starting from 2022. The chosen EcoVadis metric relates to SIG’s activities in the areas of Environment, Labour & Human Rights, Ethics, and Sustainable Procurement and provides the Company with an external perspective on its ESG activities and progress.

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 2023 and the maximum aggregate amount of compensation for the Group Executive Board for the year 2023. Further, this Compensation Report will be submitted to shareholders for a non-binding, consultative vote.

We believe that this report provides a comprehensive overview of SIG’s compensation philosophy and approach. Further we are convinced that our remuneration system rewards performance in a balanced and sustainable manner that is well-aligned with shareholders’ interests and equips SIG with effective tools in a competitive work environment.

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.

Colleen Goggins
Chairwoman of the Compensation Committee