Current Remuneration Policy
On 6 February 2020 the Nomination and Remuneration Committee presented the Remuneration Policy (the “Policy”) to the Supervisory Board for discussion and approval. This Policy outlines the remuneration principles for the members of Umicore’s Supervisory Board and Management Board and is in accordance with the Belgian Code of companies and associations and the 2020 Belgian Code on corporate governance.
This Policy is effective as of 1 January 2020 and has been submitted to Umicore’s Annual Shareholders’ Meeting on 30 April 2020.
Proposed new remuneration policy
The company has undertaken a detailed review of its remuneration policy. The purpose of the changes, as reflected in the proposed new policy, is to ensure Umicore’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.
The proposed policy 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.
The proposed changes include:
- 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.
The proposed policy will be submitted to Umicore’s annual shareholders’ meeting, and if approved, will apply as of 1 January 2022. It will further strengthen alignment to Umicore’s strategic objectives and drive strong sustainable performance.