2010 Annual Report - S&B

RemunerationIt is of capital importance to S&B,to implement compensation andmanagement development systemsthat are characterized by thehighest possible objectivity, transparencyand consistency, in order tomotivate its employees and ensureorganizational growth.Compensation andBenefits SystemThe Compensation and Benefits System’sbasic objectives are to:• Assure internal consistency andmeritocracy in the employeescompensation,• Offer competitive remunerationpackages in relation to the market,• Safeguard reliability and objectivityin salary administration anddevelopmentThe System is based on the evaluationof each position’s relative sizeaccording to specific criteria basedon an internationally recognized methodology.The evaluation result isnot affected by the sex or other personalcharacteristics of the positionholder. All positions and respectively,the people holding them, areclassified in salary groups accordingto their relative weight.Fixed CompensationThe fixed part of compensation isthe guaranteed cash which is determinedby the salary group the employee’sposition is classified in. Thesalary range of each group is set annuallyon the basis of comparativemarket data.The determination of each employee’ssalary within the respectiverange is linked to the results ofhis/her annual evaluation, based ona comprehensive Performance AppraisalSystem.Variable CompensationBonus SchemeThe company has established a separatesystem of additional, variablecompensation in the form of abonus especially for the managementand professional staff.The Bonus aims at motivating theemployees covered by this systemto activate themselves in the directionof a predetermined strategy.This motivation is pursued by linkinga significant portion of their annualcompensation with the achievementof certain predetermined quantitativeand qualitative objectives on anIndividual and Company basis overa period of one year.Stock Option PlanSince 2001 S&B has established aStock Option Plan (SOP) for seniormanagerial staff. Eligible individualsare those having completed at least1 year of service in the Group.The purpose of the plan is:• to align the interests of S&B’s Shareholderswith those of the Managementteam,• to provide indirect compensationto executives on the basis of their individualperformanceThe SOP has a 4-year vesting periodwhere 10% of the options vest in theyear of award and 30% vest in eachof the 3 following years, given thatentitled holders remain employed bythe Group. Vested options can beexercised in a predetermined timeframe in the year they vest or in anysubsequent year and up to 6 yearsfollowing the year they were grantedin. Options are not tradable or transferable.Following a relevant decisionof the Board of Directors, Stockoptions can be exercised up to 4times per year in the year they vestor in any subsequent year and up tothe 7th year they are awarded.Long Term Incentive PlansThe Company operates a LongTerm Incentive Plan for executivemanagement, through which the rewardis earned over a period ofmore than one year. Such incentivesusually relate to the achievementof mid- and long-term strategicimperatives and are linked to equityrelatedrewards.Voluntary BenefitsIn addition to the Group’s legal obligations,S&B voluntarily provides itsemployees with complimentary benefits,such as a medical plan, pensionplan, etc. Each of thesebenefits is subject to a set of regulationsensuring full transparency. Voluntarilyprovided benefits programsfollow legal systems and conditions.It is the Board’s concern to continuouslydevelop these programsand adapt them to the general marketconditions to the benefit of itsemployees.The compensation package consistsof a fixed and a variable part.Annual Report 201049