In 2021, Umicore undertook a detailed review of its remuneration policy to ensure the Group’s remuneration structure and policy are in line with current international remuneration trends and reward fairly and responsibly with a clear link to sustainable performance and the creation of long-term value.
Umicore’s new remuneration policy, which applies as of 1 January 2022, also responds to feedback received from shareholders and institutional investors and provides for increased disclosure, in particular around Umicore’s performance goals in relation to variable pay. The nomination and remuneration committee has taken market benchmarks into consideration with the aim to offer a well-balanced remuneration, ensuring that Umicore can attract, motivate and retain the right talent for its management board.
Umicore’s new remuneration policy includes:
- Revised short- and long-term variable remuneration plans adding next to revised financial goals also sustainability objectives in alignment with Umicore’s Let’s Go for Zero ESG strategy.
- Replacement of the current deferred cash compensation plan with a Performance Share Unit (PSU) Plan for the long-term variable remuneration.
- Reduced number of unconditional share awards, redistributed over increased variable remuneration and fixed annual fee.
Increased timescale of shareholding build-up from 3 to 5 years.
- Possibility to grant a sign-on fee for external recruitment to cover the loss of unvested variable remuneration and equity awards faced by the individual when changing companies.